Russia's cooling domestic demand curbs companies' appetite for imports - Central Bank
MOSCOW. July 17 (Interfax) - Difficulties with payments and logistics that Russian importers have faced owing to sanctions have been gradually waning, though they are not the only factor that has been limiting growth in exports, with weakening domestic demand being an important restraining factor, according to the results of a survey of enterprises conducted by the Central Bank of Russia.
The difficulties with payments and logistics that Russian importers encountered owing to sanctions are gradually being overcome, but they are not the only thing that is limiting the growth of external supplies: weakening domestic demand is an important restraining factor, according to the results of a survey of enterprises conducted by the Central Bank.
The Central Bank of Russia on Wednesday published comments from its main directorates traditional review on the regional economy, having surveyed 11,600 enterprises in preparation.
According to respondents, import volumes in 2025-2026 will not change significantly compared to 2024. "Growth will continue to be constrained by a gradual cooling of domestic demand, as well as foreign trade restrictions and related problems with logistics and payments," according to the review.
In the context of the strengthening of the ruble and the growth of world prices, imports in value terms have increased, while warehouses are being overstocked with certain types of finished products. "The plans of enterprises to change the volume of import deliveries are largely influenced not by the current level of stocks, but by expectations for domestic demand. Owing to its potential decrease, most companies do not intend to significantly change import volumes and will maintain its current level to ensure sufficient stocks. Active import substitution of certain types of components and goods may lead to a decrease in the supply of certain product categories," according to the document.
Imports of electronics, as well as some investment goods, have decreased owing to the cooling of domestic demand, and enterprises in Tatarstan reported a decrease in purchases of foreign agricultural machine particularly.
Among other reasons for the decrease in equipment and component supplies is the development of import substitution. "Some industrial companies noted a reorientation towards domestic spare parts. For example, a large Siberian fertilizer manufacturer refused to supply spare parts for Asian-made equipment, replacing them with domestic ones. Also, owing to changes in the public procurement system, Russian products received an advantage in public tenders, which contributed to an increase in demand for domestic equipment and a decrease in imports," according to the review.
According to estimates by a number of companies, the conditions for importing equipment have slightly improved compared to 2024. For example, a large plant manufacturing products for mechanical engineering noted that it became possible to make direct payments to foreign contractors, and a supplier of air humidifiers reported that the delivery times for equipment from Asia had been reduced. A company manufacturing logging equipment resumed direct deliveries of components from a friendly country owing to the normalization of the payment situation.
