SERGEI TSUKHLO: “2022 WAS NOT THAT CATASTROPHIC FOR THE RUSSIAN INDUSTRY”

The utilization of Russian industrial capacities reached its maximum since the beginning of 1990s, having amounted to 78.5% in October, said Sergei Tsukhlo, Head of the Business Surveys Department of the Gaidar Institute in an interview with the Nezavisimaya Gazeta daily. Sergei Tsukhlo explained that this record was related with the exit of some suppliers, import substitution and a nearly year-long special military operation.

An analysis of surveys of managers of business enterprises carried out by the Gaidar Institute (IEP) has established that the year 2022 was not that catastrophic for the Russian industry as it earlier might seem, at least, as regards the data on utilization of industrial capacities.

Sergei Tsukhlo reminded that the beginning of the year, January-February, “was fine”: the industry was confidently exiting the COVID crisis; in January the utilization of capacities was equal to 78% – “a record-high one and close to the ideal as assessed by enterprises”. In March, enterprises saw a crisis-related collapse of plans and forecasts, “but not an actual change in demand, output and employment”. For instance, in April the utilization of capacities decreased by the mere 1 p.p. to 77%, noted Sergei Tsukhlo.

Sergei Tsukhlo said that “a protracted nature” of the special operation and the sanctions standoff required more active efforts from the industry. After some fluctuations in summer, the Russian industry “set a new record of utilization of capacities” in October (78.5%); according to the IEP’s data it is the best index value over the entire period since the beginning of the 1990s. The average annual utilization of capacities in the pulp and paper industry, the printing industry and production of machinery and equipment was equal to over 80%, while in metallurgy, metal fabrication and the textile and sewing industries, to about 80%, says the report prepared by the Gaidar Institute.