Russia Explains Risks of Market Closure Amid Economic Uncertainty

© gm

At the St. Pyotrsburg International Economic Forum 2026, Deputy Minister of Economic Development of Russia, Vladimir Ilyichev, presented the initial results of special import duties introduced in response to actions by unfriendly states and outlined approaches to further protection of the domestic market.

Speaking at one of the sessions of the SPIEF, he noted that the introduced restrictions have already demonstrated a positive effect for several industries. According to monitoring data, no significant negative impact on price dynamics has been observed, while domestic producers have been able to strengthen their positions. Particularly noticeable results have been seen in the food, confectionery, and perfumery-cosmetics industries, where local production volumes have increased.

However, according to the deputy minister, one of the unexpected consequences has been the desire of businesses to further tighten import barriers. Many companies, having felt the advantages of reduced competition from foreign suppliers, have begun to advocate for additional tariff increases.

Nevertheless, the Ministry of Economic Development considers such an approach risky. As Ilyichev emphasized, excessive strengthening of restrictions could reduce imports not so much as make them less transparent and change existing supply schemes.

Another problem has been the bypass routes for importing goods through the states of the Eurasian Economic Union (EAEU). While Belarus has supported Russian measures on certain positions, Kazakhstan and Kyrgyzstan have not adopted similar decisions. As a result, some products continue to enter the Russian market through partners in the integration union.

The ministry opposes strict restrictions on EAEU allies but acknowledges the need to combat such schemes. According to the ministry representative, the government is already working on mechanisms that will minimize such product flows.

Summing up the discussion, Ilyichev noted that the effectiveness of protectionist measures depends on their precision and balance. When making decisions, authorities intend to take into account not only the interests of producers but also the impact of restrictions on price levels, competition, and the development prospects of domestic industry.

At the end of the session, experts agreed that the most effective policy remains targeted support for domestic producers without turning the Russian market into a closed economic system.