Economic aspects of state support of Russian steel industry enterprises in the conditions of external shocks

Abstract

The metallurgical sector of Russia has been a recipient of state support at the federal and regional levels for many years. The sector receives subsidies from more than 90 programs and indirectly benefits from pricing policies for electricity, natural gas and rail transport. However, the analysis of measures to support the sector under the conditions of Western sanctions and the coronavirus pandemic is of particular relevance. The aim of the work is to determine the role of state support for steel producers in the face of external shocks — the coronavirus pandemic and Western sanctions. The working hypothesis of the study is the assertion that direct and indirect measures related to supporting the sector in the face of sanctions and the negative consequences of coronavirus contribute to reducing the adaptation costs of producers, as well as increasing their competitiveness. The stated goal and the indicated hypothesis determine the structure of the paper. Thus, the author examines the theoretical and practical aspects of the impact of sanctions on the national economy, the Russian steel market, state policy towards the steel industry, as well as direct and indirect measures of state assistance that affect the steel production sector. The research methodology is based on a comprehensive review of indirect and direct mechanisms of state support for the industry. The study resulted in the identification of channels of state influence on the steel market in the context of the COVID-19 pandemic and sanctions. The results of the study can be used in the formation of the Russian industrial policy.