A third of Russian single-industry towns have already suffered from sanctions

Every third of the Russian single-industry towns has already suffered due to the introduction of Western sanctions and retaliatory measures from the Russian authorities, the rest will feel the negative consequences before the end of the year.

According to Ukrinform, this was reported in report Russian Center for Strategic Research (CSR), which RBC got acquainted with.

Among those affected by the sanctions are 134 city-forming enterprises that employ more than half a million people in Russia. Another 38 such businesses have experienced indirect consequences of the restrictions. At the same time, a significant deterioration in the situation is observed in 16 enterprises employing 182,000 people. The timber industry and woodworking, metallurgy, and transport engineering suffered the most.

The CSR (founded by the Ministry of Economic Development of Russia) believes that the main negative consequences of sanctions for the socio-economic situation of single-industry towns in Russia will manifest themselves in the III and IV quarters of 2022. We are talking about the reduction of workers, a decrease in output, and even the closure of enterprises that are not able to adapt to the new conditions.

At the same time, experts noted 50 mono-settlements, which the conditions allowed to get used to the new situation. These are enterprises of the military-industrial complex and manufacturers of auto components, analogues of imported parts, as well as organizations with low rates of modernization and introduction of modern technologies.

Read also: Russian Federation, bypassing sanctions, withdrew billions of dollars to Turkey for the construction of a nuclear power plant – Bloomberg

As you know, after the start of a full-scale Russian invasion of Ukraine, hundreds of foreign companies announced the suspension of work in Russia or the complete withdrawal from the country.

At the end of March, the Russian government allowed “parallel imports”. And in June, a law came into force allowing Russian companies to import goods without the permission of the copyright holder.

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