State and directions of development of the industrial sector of the Sakhalin Region of the Russian Federation

• Published in: Economic Consultant
• Main Authors: Lyudmila Yu. Filobokova, Alexandra Yu. Zhdankina
• Format: Article in Journal/Newspaper
• Language: English
• Published: 2021
• Subjects: industrial sector; Sakhalin Region; Far Eastern Federal District; Russian Federation; mineral wealth exports model; oil and gas sector; investment activity; Sakhalin
• Online Access: https://zenodo.org/record/4561850; https://doi.org/10.46224/ecoc.2021.1.3

Introduction. This study is relevant in connection with the search for new points of development of the Sakhalin Region in new sectors of the economy that are not related to the mineral wealth exports model of the economy. The purpose of the paper is to assess the state of the industrial sector in the Sakhalin Region and consider the directions of its development. Materials and Methods. Federal Acts and other regulations of the Russian Federation, data from Rosstat; papers in periodicals on economics, management, and regional studies were used. Results. According to a number of indicators characterizing the state of the economy, the Sakhalin Region occupies a leading position not only in the Far Eastern Federal District but also in the entire country. In 2019, the index of industrial production in the Sakhalin Region decreased by 4%, in particular, the index of production in mining in 2019 decreased by almost 5%. At the same time, about 90% of this type of activity falls on the oil and gas sector. The growth rates of mineral extraction are declining against the background of the growth of other industries: manufacturing (112.7%), electric power, etc. (104.5%), water supply (165%). Discussion and Conclusion. A high level of depreciation of fixed assets of enterprises requires the activation of investment processes for their renewal and modernization. High investment activity is required, which will have a positive impact on the efficiency of production processes. It is necessary to increase the level of graduates training at the institutions of higher, secondary, and primary vocational education due to their insufficient practical training using modern equipment, and bad command of advanced technologies.