Sanctions, high prices holding back industry – economy ministry

November 4, BPN. Western sanctions are the second most important factor after the high prices of raw materials slowing down industrial growth, found a poll by the economy ministry’s research institute.

Forty-one percent of the polled enterprises complained about sanctions, and 55 percent, about prices, Ekonomicheskaya Gazeta reported.

Twenty-two percent complained about shortages of raw materials and semi-finished goods in the first half of 2022. That was a rise from 14 percent for the same period in 2021.

Low demand (39 percent), a shortage of working capital, and payment arrears (34 percent) featured among the top five unfavorable factors.

Only 12 percent of enterprises marked off COVID-19 as a factor, a decline from 27 percent in 2021.

The economy ministry conducts surveys on a regular basis, but rarely publishes their results.