Russian Business Focusing on Survival rather than Development, New Survey Finds

Paul Goble

            Staunton, Jan. 18 – A significant share of Russian business is focusing on survival rather than on development, according to the results of a survey of more than 1,000 business leaders conducted by the RA Expert Agency, the Institute for Complex Strategic Research, and the Stolypin Institute of Economic Growth.

            Sanctions combined with a strengthening ruble which makes imports cheaper mean that “more than 40 percent” of businesses don’t plan any innovations in the next year or two and those who do plan them say they won’t be fundamental but rather a modification of existing products (rbc.ru/economics/18/01/2023/63c64b979a79472a4ee2302a).

            This set of plans carries with it enormous risks for the Russian economy, the study’s authors say. “Companies which follow a survival strategy don’t invest in personnel, don’t develop new products and don’t gain new markets, As a result, many opportunities can be lost and economic recovery will be slow.”