The last five years have been characterized by sanctions that have been imposed on Russia since March 2014 several times.
This phenomenon has negative consequences, for example, due to the ban on the import of imported medicines, the demographic situation has deteriorated.
The main reasons for the low-cost indicators of foreign trade in 2014-2016 were the fall in commodity prices, the ruble devaluation and the complication of relations with trading partners. In the 2013-2016, Russia's foreign trade turnover decreased by 44.1%.
The decrease in exports in 2015 was primarily due to a decrease in world prices for Russian oil, a reduction in imports - restrictions imposed by the Russian governments on the import of food products and agricultural raw materials from a number of countries, as well as a reduction in machine-and-technology investment purposes.
In 2016, the decline in oil and gas prices was the main factor behind the decline in exports, despite the fact that Russia increased its exports of raw materials in physical terms. The reduction in imports was affected by various trade bans, falling consumer demand and a decline in industrial production in a number of industries, which was particularly characteristic of the first half of the year, the current food embargo and a reduction in the supply of vehicles. One of the main reasons for the reduction in supplies was the fall in the ruble exchange rate - the purchase of imported goods became much more expensive than before.
During this time, the share of imports in trade in food products decreased from 34% to 22-24% in value. In the consumer basket of Russians, domestic foodstuffs occupy much more space than before.
The structure of consumption of grain, vegetable oil, sugar, potatoes, as well as meat and meat products has changed significantly. The share of meat and meat products produced in Russia reached 89%. The share of non-seasonal vegetables grown in Russian greenhouses was 45% in 2015, which is 1.5 times higher than the previous indicator. A sharp increase in the share of domestic products in the consumption structure was mainly due to a decrease in the total volume of the consumer market. In 2015, the decrease in consumption of non-seasonal vegetables and greens was 16.4%, a similar situation can be observed in the fruit and berry, milk, meat and meat products, and fish segments.
Thanks to the introduction of the food embargo, a part of the Russian domestic dairy market has been freed from imported products and the niche has been successfully filled by domestic producers. However, for the further development of this industry, the companies of the producer need the support of the state, as in the current economic situation modernization of production is impossible on their own.
The profitability of agricultural and food products produced in the country has significantly increased due to the growth of domestic prices. Companies that import materials for production have to buy them in conditions of high exchange rate, and companies that buy materials on the domestic market face a limited supply of materials of the required quality, due to which there is a price increase for the end consumer.
The sanctions imposed on Russia have not only hit the country's economy but have also led to a marked demographic decline. As the real incomes of the population have decreased and the quality of life has deteriorated. However, if the state supports local producers and entrepreneurs, both the economy and demography will gradually return to normal.