Russian Deputy PM Novak: Exit of Foreign Firms Boosted Domestic Production
Alexander Novak highlights GDP growth and economic resilience under sanctions in Vedomosti interview
Quick Look
Russian Deputy Prime Minister Alexander Novak stated that the departure of foreign companies has spurred domestic production growth across various sectors, contributing to a 10% real GDP increase over the past three years despite unprecedented sanctions.
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The departure of foreign companies contributed to production growth in almost all sectors of the Russian economy, Deputy Prime Minister Alexander Novak said in an interview with Vedomosti.
"Expanding demand amid the departure of foreign companies and the increasing need for import substitution has created opportunities for growth in domestic production in virtually all sectors, from machine tool manufacturing to tourism," he said.
The economy grew at a very high rate in 2023-2024, Novak noted. "GDP in real terms gained over 10% over the past three years, including 2025. This is growth of around 3.3% per year, higher than the global average, and, I emphasize, significantly higher than the average rate in 2017-2019 when the monetary policy target was achieved," he explained.
This growth enables Russia to secure the fourth place among the world’s largest economies in terms of purchasing power parity, Novak said. "Russia has held this position since 2021. The gap in per capita income with developed countries has also narrowed significantly. That said, unlike the period of 2017-2019, when growth averaged 2.3% per year, the economy has been developing under unprecedented sanctions pressure," he stressed.
With a large number of companies from unfriendly countries leaving, everything was done to hinder Russia’s access to global markets, the official said, adding that those actions included, in particular, asset freezes, attempts to cut it off from the international payment system, direct bans on trade with Russia, and restrictions on access to technology and investment.
"The sanctions lists increasingly include Russian companies from various industries, as well as companies from other countries subject to secondary sanctions. Meanwhile the sanctions continue to mount: the EU has imposed 20 packages and is preparing a 21st," he said.
