Foreign trade restrictions becoming less relevant for Russian businesses - study

MOSCOW. June 24 (Interfax) - The issue of foreign trade restrictions is losing relevance for Russian businesses, with only 20% of executives now considering it important, according to a joint study titled "CEO Barometer" conducted by consulting firm Yakov & Partners, the Roscongress Foundation Business Russia and the Russian Union of Industrialists and Entrepreneurs (RSPP).

In 2022, this figure stood at 63%.

The survey indicates Russian businesses have adapted to new foreign economic realities. The factor of geopolitical tensions has also notably weakened, with only 15% of respondents identifying it as a key challenge.

Over half of Russian businesspeople (66%) reported stable or improved conditions at their companies over the past six months. However, the share of respondents noting a deterioration jumped sharply to 34%, exceeding even 2022 levels (24%). In 2024, only 16% of companies reported worsening conditions. Declining optimism is most apparent in capital-intensive sectors like mining, heavy industry, oil and gas, chemicals, energy and transportation. Conversely, companies in IT, retail, consumer goods, healthcare and medicine remain more confident.

Meanwhile, 90% of company leaders believe conditions will improve or remain stable in the coming six months, with optimism steadily growing - 58% now anticipate improvements versus 53% a year ago and 48% in December 2022.

Workforce shortages remain a top priority for Russian companies, with 48% of leaders citing a lack of employees as a key issue. The top three scarcest specialists are IT professionals, skilled workers and equipment operators, machine assemblers and drivers. The second most pressing problem (cited by 42%) is rising capital costs amid persistently high key rates.

A majority of companies (62%) are maintaining or expanding investment portfolios, while 25% have paused or slowed some projects, and 13% have halted all possible investments. Retail, consumer goods and financial sector companies show the most investment optimism. The most pessimistic are in transportation and logistics, energy, oil and gas, chemicals, mining and heavy industry.

According to the study, in current conditions companies' key development priorities are cost reduction, acquiring and retaining employees, implementing new technology, and increased production and service output.