Sanction Resistant Russia's Regions in 2022

The economic slump in Russia in 2022 was less severe than forecast. This was due to high global market prices for energy commodities, the rapid adaptation of companies to Western sanctions, and targeted intervention on the part of the state. However, development in the regions varied greatly. Oil-producing regions benefited from high prices. The situation was difficult due to the departure of international corporations from centres of the automotive industry. This also applies to the regions in the country's west, where the lumber processing and ferrous metal industries play a major role. In the country's west and east, where production is geared to the domestic market or export to Asia, this was less the case. Regional budgets are stable due to payments from Moscow. Unemployment is low. However, aging and emigration are leading to a shortage in skilled workers. No recovery is expected in 2023. Growth is to be expected only where armaments factories are located.