Yet long before sanctions were imposed, the Russian producers hinted to his government that the import would have to be reduced. But the production is not upgraded until now.
St. Petersburg Internet newspaper Fontanka.ru received from its readers information about what’s on sale suspiciously cheap cheese, which is sold literally for a knockdown price and has strange properties. Journalists purchased this cottage and did a little experiment.
The cheese tasted heated in a metal spoon over the fire. Soon, the cheese exploded with a beautiful flame. From it came a strong chemical smell until, until he turned into a black substance similar to tar.
The local lab did a study and concluded that in cheese absolutely no milk fat. When, eventually, managed to contact the Russian producer of cheese, a reply was received that dairy fat was replaced by other raw materials. Keeping a commercial secret, he did not want to reveal what it is.
After Russia seized Crimea from Ukraine in spring 2014, EU countries started to put pressure on Russia through sanctions. In Crimea, for example, could not invest and send tourists. Russia responded by banning imports of products from the EU.
Although the seizure of the Crimea was a surprise to many, banning the import was talk before. The Russian political leadership spread of economic ideas that promoted import substitution. For example, representatives of the local dairy industry hinted to the authorities that import restrictions would support domestic producers of food products.
The truck stopped with cheese, but the production has not yet been established. The quality of raw materials, processing, storage and transportation did not meet the Western standard. The consumer to provide the former quality. With the worsening economic situation has increased the temptation to reduce the price due to the use of undefined materials.
In Soviet times the buyer has learned to appreciate, for example, the taste of cheese Viola. Dissatisfaction with the situation in the food market accelerated the collapse of the Soviet Empire.
The high price of oil, which was in 2000-ies, has made many Russians rich and the middle-class has grown. Had enough money to finish the houses, travel and the purchase of Western food.
When the price of oil fell again, it became clear the real situation in the economy. Reform once again was not held. And so, for example, raising the retirement age would have caused protests, reform was again postponed for an indefinite time in the future.
Experts in the field of politics and Economics often draw a scenario in which low oil prices provoke the use of power politics outside the state. When the economic situation is causing people’s discontent, it is necessary to appeal to the national feelings.
This scenario has already been implemented during two to three years.
In fact, the policy of substitution of imported products of own production goods was neither in one country means for development of own economy. It didn’t work in Russia. If everyone would do what he does best and trade with others, all will benefit from this. If you do not copy what others do, nothing happens.
However, the list of industries where Russia failed to reform, is not so small.
Partial opening of energy markets is considered in Russia a huge success. Thanks to him, the father of the reforms, the former Deputy Prime Minister Anatoly Chubais can be considered a kind of official dissident, if only he did not cross borders.
Another prominent critic is former Finance Minister Alexei Kudrin, who are now asking advice on economic reforms.
In may, Kudrin demanded that President Vladimir Putin easing of geopolitical tensions. Thus, the country could receive new investments and technologies, which could reduce the gap with other countries.
Reporting the work of the Economic Council under the President of Russia, the Vedomosti newspaper wrote that Putin’s response Kudrin was made in closing argument.
Putin acknowledged Russia’s lagging behind in some areas. But the country has, however, a thousand years of history, and it will protect its sovereignty until the end of his life.
Between the lines one could read a clear message. Before the presidential election in 2018 discharge will not, therefore, with the reform of the economy will again have to wait. If the cost is floundering in the old technologies, then so be it.
