STRATEGIC PRIORITIES OF RUSSIA’S FOREIGN ECONOMIC POLICY

Yaroslav Berezhnyi

Yaroslav Berezhnyi https://orcid.org/0000-0003-2991-7317

Keywords: Russia, national interests, foreign trade, benefits-costs analysis, economic policy.

Abstract

In the article, the author identified the key markets and partner countries in the foreign economic activity of Russian companies by “benefits-costs analysis” a trade of the Russian Federation. Russia has the main benefits and disadvantages of 10–12 partner countries in world trade and depends on them due to the weakness of the domestic market. The first five are unchanged. The top five make up more than 50 % of the world’s impact on Russia. Cumulative benefits are provided by the Netherlands, Turkey, Poland, Southern Korea and Belarus. Trade in services with offshore states is also affected by Russia. This is Ireland and Cyprus. Russia receives significant losses in the trade balance only from trade in services with Turkey (tourism) and Ukraine (gas transit).

The Russian Federation remains dependent on the commodity markets of the world and a limited range of partners. No domestic policy on overcoming commodity dependence has been or has failed since the fall of the USSR. The inertia scenario for the development of the “Soviet” economy continues. The main markets are mineral raw materials (oil and gas) and metals, which together account for 76 % of Russia’s exports. It is not convenient for the Russian companies to trade in the markets of tourist, business and transit services.

According to the research, the author outlines five strategic priorities of the Government of the Russian Federation to ensure the sustainability of the Russian economy: strengthening the place in the oil and natural gas market in Europe; creation of an “internal” market in the post-Soviet space; development of natural logistical advantages; advancement construction services (energy and logistics); creation of the domestic tourist market. This means that Russia’s key tensions arise with Turkey and Ukraine, which, for economic reasons, are barriers to achieving these priorities.

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