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Russian Journal of Industrial Economics

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Vol 19, No 3 (2026)
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Business economics

261-276 228
Abstract

The article examines the development of industrial production localization as a means of strengthening the technical and technological independence of an industrial enterprise, using “Navoi Mining and Metallurgical Company” Joint-Stock Company (“NMMC” JSC) as a case study. The study draws on V.L. Kvint’s theory of strategizing and employs systems, comparative, and dynamic analysis, statistical data processing, and expert assessment. Based on “NMMC” JSC materials covering 2008–2025, the study identifies the principal stages in the development of production localization and examines the establishment of local manufacturing capabilities for high-technology equipment, the expansion of industrial cooperation, and the integration of research, education, and production. It describes the organizational and technological mechanism for industrial cooperation known as “shatakka olish”. The findings show that the continued development of in-house machinery manufacturing, industrial cooperation, and research and educational support helps build a sustainable technological base, reduce dependence on imported supplies, and strengthen the company’s technical and technological independence. The findings may inform industrial production localization programs and industrial policies for large enterprises in the mining and metallurgical sector.

277-291 232
Abstract

The article examines efforts to reduce production costs at Russian defense industry enterprises amid growth in the state defense order, sanctions pressure, and the need to ensure production volumes, product quality, and manufacturability simultaneously. Cost reduction in the defense industry is shown to be not only an economic objective but also a strategic task directly related to enterprise resilience, management efficiency, and the fulfillment of government obligations. An analysis of practices at Russian defense industry enterprises identified the key areas for reducing costs: improving organizational management; introducing rigorous project management and end-to-end planning; scaling up production; developing integrated management systems; conducting technological audits; modernizing equipment; applying lean manufacturing tools, digital modeling, and digital twins; and improving workforce competency management. Particular attention is paid to the transformation of pricing approaches under the state defense order, whereby cost savings become a source of additional profit, investment, and technological development. The article concludes that sustainable production cost reductions at defense industry enterprises can be achieved only through a systematic combination of organizational, technological, workforce, and financial measures.

292-308 411
Abstract

The need to modernize Russian industry has become increasingly urgent as the country pursues technological sovereignty and sustainable development. Environmental and technological projects can support this process by improving resource and energy efficiency in production. Despite growing interest in sustainable development, best available techniques (BAT), and resilience, their application to improving industrial production processes remains underexplored. This study aims to analyze and assess leading Russian practices in modernizing industrial facilities to improve their environmental performance and resource efficiency and to consider these practices as strategic benchmarks for spatial development. It identifies the strategic objectives of environmental and technological modernization and the benefits it can bring to industry. BAT, which forms the core of Russia’s industrial environmental policy, is proposed as the principal management framework. The proposed framework is applied to case studies of a glass manufacturing facility in the Vladimir Region, a cement plant in the Ryazan Region, a metallurgical facility in the Urals, an industrial symbiosis initiative in Novotroitsk, and a green integration project in the Komi Republic. Drawing on these cases, the study demonstrates the outcomes of BAT-based environmental and resource-efficiency modernization, taking into account sector-specific quantitative limits on pollutant emissions, resource-efficiency targets, and regional conditions. The study offers recommendations for businesses and public authorities on strengthening cooperation through knowledge and technology transfer in support of national goals. Its practical contribution lies in providing guidance on managing the environmental and resource-efficiency modernization of industrial enterprises in accordance with BAT principles. The findings can inform industrial enterprise development strategies aligned with national development goals and internationally recognized Sustainable Development Goals.

309-318 104
Abstract

Amid slowing industrial growth and persisting sanctions restrictions, the search for new drivers of economic development has become increasingly important. The article examines trends in the development of small industrial enterprises (SIEs) and assesses their role in the structure of industry and small business. The study aims to determine the position of SIEs within the industrial sector and among small enterprises as a whole, assess their development trends, and identify key growth drivers and barriers to development. Using Rosstat data for 2014–2025, the study analyzed the industrial production index by sector and the revenue structure of small enterprises. It was found that manufacturing was the fastest-growing industrial sector, with the share of SIEs in this sector reaching 88%. From 2022 to 2024, revenue of SIEs increased by 54.8%, making industry the second-largest small-business sector by revenue, behind only trade. The main drivers of SIE growth were import substitution, government support, and the high adaptability of small enterprises. At the same time, systemic barriers were identified: staffing shortages, limited access to preferential loans, increasing tax burden, barriers to small-business participation in high-tech industries, and weak innovation infrastructure. The study proposes directions for institutional reform needed to transform SIEs into a driver of structural economic transformation.

Financial management

319-333 130
Abstract

Sustainable development of the Russian economy, in line with national strategic priorities, requires a governance system that balances long-term economic efficiency, environmental responsibility, and social performance. Public sector entities are directly involved in implementing national projects, government programs, and the Sustainable Development Goals. Assessing their performance is essential to determining the public sector’s actual contribution to sustainable development, identifying challenges and opportunities for improvement, and providing feedback on the exercise of public mandates. ESG ratings can provide a basis for organizational change within public sector entities and, consequently, for broader economic, social, and environmental transformation. However, existing international and Russian ESG ratings primarily target large commercial companies, leaving public authorities, local self-government bodies, and government, budgetary, and autonomous institutions largely outside the scope of ESG assessment. Closing this gap is necessary to integrate the public sector into the national ESG transition. Accordingly, this article proposes methodological approaches to developing ESG ratings for public sector entities in the Russian Federation, taking into account their organizational and legal characteristics and the limited applicability of existing commercial-sector methodologies. The approaches employed by five leading international and four Russian rating agencies were examined. The analysis demonstrates that existing ESG rating methodologies are poorly suited to public sector entities. The resulting methodology comprises a classification of rating participants by area of activity; a system of indicators covering the environmental, social, and governance pillars; a mechanism for incorporating risk management into the assessment; and a scale for interpreting results from low to high. An additional adjustment factor rewards advanced ESG initiatives. The proposed methodology closes a gap in assessing the public sector’s contribution to the Sustainable Development Goals, improves transparency, and enables comparisons across regions, municipalities, and public institutions.

334-347 104
Abstract

The development of mineral deposits is a complex and multifaceted process involving technical, economic and organisational challenges. However, despite the high level of risk, the mining industry is still an attractive sector for long-term investment. This necessitates the development of robust approaches for involvement of financial institutions in mining projects at different stages of the project life cycle. The objective of this study is to develop a methodology for investors' approaches to financing of mineral exploration and mining companies development projects. Each stage in the development of a mining project is associated with a specific set of studies that also identify the risks related to mineral deposit development. The results of such studies make it possible to develop pre-design documents of varying levels of detail, which investors rely on when taking financing decisions. Such documents provide a structured assessment of all Modifying Factors affecting mining and mineral processing, encompassing every aspect of the project from the mineral resource in situ to the final saleable product. As these factors get structured, and the project specific risks and features are understood at each stage of documents development, the project advances to the next stage of development, and. consequently, project capitalisation expands rapidly. The study concludes that these changes in project development stages, when considered along with other project parameters, form a relationship, which provides the basis for formulation of a methodology for applying different approaches to project financing. Adequate and timely financing enhances project performance at all levels.

National industrial economy

348-362 79
Abstract

A study was conducted on the theoretical and methodological foundations for strategizing the development of Russia’s coal-chemical industry as a resource-oriented, high-tech industrial sector. Based on V.L. Kvint’s strategizing methodology, a multi-level architecture for the industry’s development strategy was developed, encompassing federal, regional, and corporate management levels. Key mechanisms for implementing the strategy are substantiated, including public-private partnerships, special investment contracts, technology consortia, import substitution programs, and instruments for supporting research and development work. An organizational and economic model for strategizing the coal chemical industry is proposed, reflecting the relationship between strategic guidelines, resource potential, implementation mechanisms, and the final results of industry development. A scenario system of strategic indicators for the development of the coal chemical industry in Russia has been developed, allowing for the assessment of the effectiveness of strategy implementation in the areas of technological development, deep coal processing, digital transformation, environmental sustainability, and export potential. The study applies methods of system analysis, strategic forecasting, modeling, and expert assessments. The scientific novelty of this work lies in the development of a conceptual model for strategizing resource-oriented high-tech industries and the formation of an organizational and economic mechanism for implementing a long-term industry strategy. The research results can be used in the development of state industrial policy, industry strategies, and technological development programs for the Russian coal chemical industry.

363-374 123
Abstract

This study aims to develop a fit-for-purpose model of the manufacturing innovation activity index for quantitatively assessing changes in sectoral innovation development over time. The analysis focuses on manufacturing, one of the core sectors of the Russian economy. The study integrates scenario matrices with tools for quantifying the fiscal effects associated with the integration of government information systems. A multiple linear regression model is estimated for the manufacturing innovation activity index. The model can be used by federal economic agencies, executive authorities in the constituent entities of the Russian Federation, development institutions, corporations, and expert communities when developing and adjusting tax policy, drafting regulations, and supporting investment projects in manufacturing industries.

375-387 92
Abstract

The complex and interdisciplinary nature of technological sovereignty, which spans macroeconomics, political science, sociology, and regional economics, determines the relevance and significance of this study. The study aims to assess indicators and drivers of technological development in the constituent entities of the Russian Federation and in the country as a whole. Comparative and regression analyses were used to identify and quantify the effects of various drivers on technological development indicators in the constituent entities of the Russian Federation. The analysis was based on data from the Federal State Statistics Service for 2000–2024. The number of advanced production technologies developed increased overall, with substantial growth beginning in 2017 and a slight decline in 2023. The level of digitalization in the Russian Federation increased considerably. Between 2003 and 2024, the number of connected subscriber devices increased 9.2-fold, while the number of organizations using servers increased 4.5-fold. In 2024, 90% of households had broadband Internet access. Expenditure on technological innovation had a positive and economically significant effect on the share of innovative organizations in Russian regions. The study identifies the role of technological development in interregional inequality in the Russian Federation. On the one hand, new digital technologies create conditions for equalizing opportunities among Russian regions; on the other hand, technologies are adopted and used primarily in the most developed regions, including Moscow, the Moscow Region, St. Petersburg, and the Nizhny Novgorod Region, thereby widening interregional disparities. The findings reflect the complex, nonlinear dynamics of technological development in the Russian Federation, which should be taken into account when developing regional strategies.

388-403 209
Abstract

Over the past decade, climate policy in general and decarbonization processes in particular have become the subject of intense scholarly debate. Alongside studies substantiating the need to reduce greenhouse gas emissions, there is a growing body of research that views the climate agenda as a form of geoeconomic pressure. Regardless of these differing perspectives, the carbon factor significantly affects industrial operating conditions through changes in cost structures and technological priorities, as well as through new conditions governing international trade. Its impact is particularly pronounced in the metallurgical industry, which is among the most energy-intensive industries and has a substantial carbon footprint. At the same time, metallurgy plays an important role in Russia’s export structure, making it necessary to assess the long-term implications of decarbonization for the industry. The objective of this study is to substantiate a strategic interpretation of the carbon footprint at the industry level and to identify its role in defining the long-term development priorities of the metallurgical industry. The study is methodologically grounded in V.L. Kvint’s concept of strategizing, which provides a framework for structuring industry development around fundamental values and strategic interests while taking into account factors in the external environment. The carbon intensity of metallurgical production should be treated as a measurable industry-level indicator that enables changes in the external environment to be reflected in investment and technology-related decisions. 
The practical implications of this research pertain to its utility in formulating and iteratively adjusting industry and corporate development strategies within the metallurgical industry and other industries, including the energy, oil and gas, transport, and chemical industries. Furthermore, the proposed analytical framework informs decisions on technological modernization and supports the development of circular production models.

Regional economy

404-420 93
Abstract

Under current conditions, the poverty rate has become one of the key indicators of the population’s social well-being. Poverty, in turn, varies considerably across the main sociodemographic groups of households, depending, for example, on household members’ employment, the number of dependents, social status, place of residence, and other factors. A specific feature of poverty in present-day Russia is that it is driven by structural factors, foremost among them the large share of low-paid jobs in the labor market. The study aims to develop effective tools for forecasting poverty rates using an agent-based approach. The article describes an agent-based model for forecasting poverty in the Republic of Bashkortostan. The concept of the simulation model is presented, and the types of agents, their parameters, and behavioral algorithms are discussed. The decision-making process for managing poverty levels is presented as an activity diagram created in Enterprise Architect. The model inputs include the results of sociological studies and population surveys, as well as regional socioeconomic indicators provided by the territorial offices of the Federal State Statistics Service. The model outputs are projected changes in the share of people living in poverty, their income levels, and the number of people with incomes below the minimum wage. The control parameters include benefits for large families, social benefits, targeted assistance for rural residents, the annual wage indexation rate, and the minimum wage. The article presents the results of scenario experiments aimed at reducing poverty in the Republic of Bashkortostan, including scenarios based on best practices from leading regions in the Volga Federal District and the Russian Federation. The article also provides practical recommendations for developing effective poverty alleviation policies at the regional level.



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ISSN 2072-1633 (Print)
ISSN 2413-662X (Online)