Problems and prospects of regional economy development in the period of sanctions

Analysis of economic and political consequences of the sanctions against Russia, analysis of the dependence of different economy sectors of this country on imports and the possibility of its substitution by domestic products is an important task. In this connection we study the economic situation of the regions of the Russian Federation under the conditions of Western sanctions on the formation import substitution. At present import substitution is the indicator of technological progress in Russia which is one of the priorities of economic development in the near future. The examples of the negative impact of sanctions on the economy of Russia and Western countries are presented. First of all, sanctions imposed limit access of European and American investors to long-term debt instruments. Special attention is given to innovative development of Russia which largely depends on the effective implementation of its infrastructure transformation by establishing a system for the efficient reallocation of financial resources towards innovation programs, as well as the active participation of the credit institutions, investment companies, venture capital funds, mutual insurance companies. The timely measure is linking of innovative and regional policy of the development of the subjects with their own resources and investors, an attractive environment for foreign investment. Directions of the confrontation to sanctions are determined. Issues relating to economic sanctions are of particular importance in the present conditions where the interdependence of national economies is associated with formation of the economic space. The possible scenarios of domestic economic development are formulated. The discussed issues of import substitution at the present stage, including at the stage of the actions of Russian sanctions, should be applied for the reorientation of the regional economy and the restoration of the destroyed production in the 1990s.