Russian Federation

Russia's war of aggression against Ukraine has had profound effects on the maritime sector. It directly disrupted maritime activities in the Black and Azov seas, causing the suspension of Ukrainian port operations and agricultural exports. Although an export corridor temporarily resumed activities, the termination of the agreement in July 2023 continues to affect Ukrainian shipping. International sanctions against Russia and Belarus have notably targeted shipowners and shipbuilders, restricting Russian ships' access to OECD ports. These sanctions have also halted orders for Russian ship owners in OECD countries, reducing new orders and vessel completions in Russian shipyards. While global seaborne trade and ship demand remain relatively unaffected, the war has prompted longer-term impacts such as altered trading routes, changes in energy demand and costs, potential implications for maritime decarbonisation, and an increase in 'dark fleet' vessels.

The impacts of the war in Ukraine will be felt severely within OECD economies, especially in border regions on the front-line of the humanitarian refugee crisis. The economic impacts, in particular those driven by rising energy prices, will also be spatially differentiated, affecting some regions more than others. Italy is no exception, with gas-intensive industries concentrated in northern regions, and wheat-based food and farming prevailing in southern regions and islands. While, overall, Russia accounted for a minor share of Italian exports, some regions and industries are more vulnerable than others to falls in bilateral trade, including destinations popular with high per-capita expenditure Russian tourists.

This publication examines the major policy challenges, achievements and next steps for the creation of a more entrepreneurial population and a stronger SME sector in the Russian Federation, which are critical to the country’s economic growth and diversification. Despite less regulatory burdens and more subsidy financing for start-ups, production modernisation, innovation and exporting, framework conditions need to be improved in areas such as the rule of law, commercialising science and improving entrepreneurial skills and education. Gaps in SME and entrepreneurship programmes also need to be filled, such as through new initiatives for high-growth firms and large firm-SME linkages. Strengthening business development services infrastructure and improving access to finance are further important challenges. All these improvements will need to be spread across the regions of the Russian Federation if national objectives for growth and balanced spatial development are to be met.