Limits and opportunities for the development of the Russian agro-industrial complex under sanctions

In recent years, the Russian economy has increasingly faced the need to quickly reorient its development vector. Overcoming the export dependence on raw materials and the development of non-primary industries is becoming more and more urgent. If earlier export diversification was only a topic for discussion for us, now, in connection with the sanctions confrontation with the West, this issue is becoming a real problem that needs to be solved. In this regard, overcoming commodity export dependence is not an anti-crisis measure, but rather it is a long complex process of reforming the entire economy, which in the future may lead to the emergence of a completely different economic program for the development of the Russian Federation. The sanctions policy of Western countries towards Russia, as well as the counter-sanctions of the Russian Federation and the arbitrary termination of trade of Western companies with Russia were the result of the restructuring of domestic foreign trade in 2022, this process is still ongoing. After the start of the special military operation (SVO) in Ukraine, EU countries imposed sanctions on most exports to Russia. If we compare the situation of enterprises before the imposition of sanctions, then a larger number of companies exported, about 19%, and after the imposition of sanctions, their number fell to 7%. The beginning of Russia's special operation has led to the undermining of global agricultural markets, since Russia and Ukraine are major exporters of cereals, wheat, corn, oilseeds and fertilizers. This situation has led to market instability and sharp price spikes for the main types of agricultural goods. Also, as mentioned earlier, the topic of diversification of exports of Russian goods is on the agenda. It is obvious that economic growth has an impact on the level of general well-being of the population, therefore, ensuring high rates of economic growth is relevant for a developing country. The agricultural sector is considered one of the priority areas of the economy, which has a direct impact on the sustainable socio-economic development of the Russian Federation. Before the imposition of sanctions, the priority areas of exports and investments of the state were the defense sector, IT technologies, and Smart city. Today, the sphere of the agro-industrial complex (AIC) is becoming increasingly important. For example, exports of agricultural products from Russia in 2022 increased by 12% compared to previous years. An industry-specific system was also developed to support and promote the export of agricultural products and ensure that Russian products comply with the requirements of regulatory authorities of target foreign markets. Based on the program, the bet was placed on the countries of Asia, Africa and the Middle East. Other additional support measures have also been taken, such as expanding the network of representatives of the Ministry of Agriculture abroad. Given the current situation related to the spread of the new COVID 19 coronavirus infection In 2020-2021, as well as sanctions pressure from Western countries on the development of the Russian economy, there is a need for a new economic model for the development of the Russian economy. The development of the agro-industrial complex is provided mainly in rural areas, which are a key resource of the Russian Federation. With the intensification of globalization processes, the importance of such territories increases, as the importance of natural and territorial resources for the development of the country increases. In addition, a serious breakthrough has been made in recent years, which is associated with the construction of new agricultural enterprises. It is important to note that Russia is among the top ten countries in the world in terms of value added produced in agriculture.