Page 69 - RusRPTApr23

In the regional context, the largest growth in industrial production in January 2023 was obtained in the Republic of Buryatia (by 51.7%), in the Yaroslavl region (by 31.2%) and in the Republic of Kalmykia (by 30.9%). The deepest decline is in the Kaluga region (by 26.8%) and in the Republic of Dagestan (by 23.5%).
RIA Rating experts believe that the low base factor will begin to operate in April, and the dynamics of economic indicators will improve dramatically. In this regard, the forecast for GDP dynamics for 2023 is kept at the same level: -1% - +0.5%.
Rosstat, Russia’s Federal State Statistics Service, released its latest figures on industrial production in the regions for the month of January 2023, FPRI BMB Russia reported on March 3.
The data shows that the worst performing regions in Rosstat's industrial production index are those with car-making or machine-building industries as the dominant sector. These regions include Kaluga, which experienced a 73.2% drop compared to the same period the previous year, Kaliningrad with an 85.6% drop and Ulyanovsk with an 85.5% drop.
Regions reliant on mining, such as Irkutsk, which experienced a negative dynamic with a 89.9% fall, and Murmansk, which relies on fisheries and metallurgy, was down by 86.9%, also saw a decline in their industrial production index.
On a more positive note, the energy-producing Sakhalin region, which was hit hard by the withdrawal of foreign companies, is showing signs of recovery with an industrial production up 81.0% y/y.
However, the Tyumen region, which is Russia's main oil and gas producing region, is sliding into the red.
Vladimir Putin met with Valery Limarenko, the governor of the Far Eastern Sakhalin region this week. Following the exit of Western companies from the region's LNG projects last year, Sakhalin's industrial production declined by more than 23%.
Although the production of the Sakhalin-1 LNG project, which Exxon exited, has been partially restored, the region will face budgetary constraints in the coming months.
Limarenko's meeting with the President was likely to ensure that money will keep flowing. Notably, Limarenko and Putin did not discuss some of the previously-planned capital investment projects for the region.
69 RUSSIA Country Report Russia April 2023 www.intellinews.com