Trends in the development of foreign economic relations of the Yamalo-Nenets Autonomous Area

Popova Lyubov' Ivanovna ORCID: 0000-0002-5984-5222 PhD in Economics Associate Professor, Department of Customs, Tyumen State University 6 Volodarsky str., Tyumen, Tyumen region, 625003, Russia l.i.popova@utmn.ru

Maltseva Natalya Vladimirovna ORCID: 0000-0002-0959-6336 PhD in Sociology Associate Professor, Department of General and Economic Sociology, Tyumen State University 6 Volodarsky str., Tyumen, Tyumen region, 625003, Russia n.v.malceva@utmn.ru

Introduction

Currently, the Yamalo-Nenets Autonomous Okrug is building foreign economic relations with a wide range of countries, despite the new challenges associated with the instability of the current situation in the world community. Priority areas for the development of foreign economic relations are based on the economic potential of the Yamalo-Nenets Autonomous District: the fuel and energy complex with accompanying large-scale infrastructure projects and traditional economic sectors of the indigenous peoples of the North.

The purpose of the work is to study the prerequisites and development trends of the Yamalo-Nenets Autonomous Okrug in order to identify problems and prospects for deepening foreign economic relations in the region.

The need to deepen and expand the region's foreign economic relations is due to the following positive aspects:

1) steady growth of exports, imports and foreign trade turnover;

2) improving the efficiency of export-import operations;

3) inflow of foreign investments;

4) development of diversification of the geographical structure of exports of goods and services produced in the region in order to solve the problem of diversification of the commodity structure of foreign trade of the Russian Federation.

The scientific novelty of the study lies in an integrated approach to identifying the prerequisites, specifics of foreign economic activity in the Arctic region, development trends and promising areas for expanding foreign economic relations of the Yamalo-Nenets Autonomous Okrug in conditions of economic and political instability.

Research methodology

The formation and development of foreign economic relations takes place in the process of foreign economic activity. According to O.V. Martianova, foreign economic activity should not be positioned as an independent category, since it represents one of the functional components of foreign economic relations. In addition to this position, the scientific literature suggests that foreign economic relations imply a form of international cooperation carried out between countries in trade, economic, credit, financial and scientific and technical areas ^[1].

It should be noted that among the representatives of science, two main approaches to the study of the development of foreign economic relations of the region have been formed today.

Researchers who adhere to a territorial approach to the development of foreign economic relations of the region, including N.N. Baransky, I.V. Zakirov, distinguish the territory in the development of foreign economic relations of the region ^{[2; 3]}. In the understanding of the proponents of this approach, the territory is positioned as the most important and primary factor in the development of foreign economic relations of a particular region. In this context, it is noted that it is necessary to study the geographical division of labor, the causal relationship of foreign trade, at the same time without taking into account socio-economic factors.

In contrast to this approach, a socio-economic approach has been formed (E.Y. Loseva, J.A. Mingaleva), according to which the development of foreign economic relations is indicated exclusively by socio-economic factors of the region's development ^[4]. Proponents of this approach invest in the assessment of the development of foreign economic relations the possible socio-economic consequences caused by external transformations. Based on the data obtained, a further algorithm of actions is being formed: determining the ways and directions of development of foreign economic relations of the region.

The founder of the conceptual position on the territory as an indisputable factor in the development of foreign economic relations of the region is the Soviet and Russian economist B.A. Heifets.

Among the advantages of the socio-economic approach, representatives of science highlight the current state of the socio-economic development of the region as a factor determining the development of the economic sector ^[5].

Proponents of the socio-economic approach defend the thesis that, as foreign economic activity intensifies, preference is given to the socio-economic approach, which allows us to trace the development of foreign economic relations not only within a particular region, but also the country as a whole.

It is difficult to deny the correctness of this judgment, since the socio-economic aspect of the development of foreign economic relations in the region is currently becoming a strategic target, but the territorial factor should not be overlooked. In this regard, it is necessary to refer to the scientific work of E.L. Andreeva, Yu.G. Lavrikov, A.V. Ratner, who, in the context of the factors of development of foreign economic relations of the region, adhere to the need for their comprehensive assessment ^[6].

The classification of factors presented by the authors, in our opinion, correlates well with territorial and socio-economic approaches.

Analyzing the levels and macrogroups of a comprehensive assessment of the factors of regional foreign economic relations, it is necessary to identify external factors, including the global challenges of our time.

The second group of factors includes natural and infrastructural factors. The foreign economic activity of the region in this context proceeds from internal principles – the natural resource potential of the region. However, in addition to this, this group of factors also reflects the industrial and production potential of the region. The analysis of these factors provides an opportunity to track the diversification of exports and the industry interest of potential foreign investors.

Organizational factors are directly dependent on natural and infrastructural factors and are formed in the form of human capital, financial mechanisms of economic entities in the region, integration of partnership and competition.

Investment factors arising from organizational factors reflect the scientific and technical potential, including based on human capital, of the formed financial mechanisms on which the investment attractiveness of the region depends.

The last factor is the organizational and legal basis for the formation of foreign economic relations in the region.

K.V. Ekimova, I.P. Savelyeva, and I.M. Tsalo adhere to a different approach to determining the factors influencing the development and expansion of foreign economic relations in the region, highlighting, among others:

1) the state and trends in the development of the global and national economy;

2) the reasons for the changes taking place in the conjuncture of world markets;

3) the foreign policy situation;

4) state foreign policy ^[7].

Considering the need to deepen and expand the region's foreign economic relations, A.A. Zolotarev and E.L. Zolotareva pay attention to the following aspects:

1) steady growth of exports, imports and foreign trade volume;

2) improving the efficiency of export-import operations;

3) the inflow of foreign investments into the region;

4) the development of the geographical configuration of the modern external relations of the region;

5) development of diversification of the geographical structure of exports of goods and services produced in the region to solve the problem of diversification of the commodity structure of foreign trade of the Russian Federation ^[8].

From the perspective of considering the foreign economic relations of the regions in modern conditions characterized by sanctions restrictions, it should be noted the fall of the ruble and the withdrawal of foreign investors from the Russian market. In this regard, the devaluation of the ruble serves as a negative factor for deepening and expanding foreign economic relations.

Meanwhile, the sanctions imposed on the Russian Federation have not only a negative effect. This concerns building close partnerships with Asian countries, such as China and India, as evidenced by the positive dynamics of trade turnover. Moreover, by 2022, exports to China and the Republic of Turkey have more than doubled in percentage terms. Exports to India have more than tripled ^[9]. This positive trend is largely due to the introduction of dumping prices for Russian products.

For domestic entrepreneurs from the regions, these are new opportunities for foreign trade with representatives of friendly countries. In addition, the steps taken by the state in the field of import substitution under sanctions help attract new investors.

Another positive aspect of the sanctions restrictions is the active promotion of the business of domestic entrepreneurs outside the borders of the Russian Federation. Starting in 2022, when sanctions against the Russian Federation began to take on a pronounced character, domestic manufacturers created additional production facilities in friendly countries – the Republic of Kazakhstan, the Republic of Belarus, the People's Republic of China, and the United Arab Emirates. This definitely has a positive effect for certain regions of the Russian Federation and the Russian economy as a whole.

The results of the study

The Yamalo-Nenets Autonomous Okrug is characterized by a unique geographical location, which generally determines the development and promising directions of the region's foreign economic relations and is fully included in the Arctic zone of the Russian Federation.

More than half of the territory of the Yamalo-Nenets Autonomous Okrug is located beyond the Arctic Circle, the northern border of the Yamalo-Nenets Autonomous Okrug is washed by the Kara Sea, a small part of its territory is located on the eastern slope of the Ural Ridge. Yamal and Gydansky peninsulas are located on the territory of the Yamalo-Nenets Autonomous District. According to the Federal State Statistics Service, as of 04/01/2022, the population of the Yamalo-Nenets Autonomous Okrug amounted to 552.4 thousand people. The population density is 0.7 people per square kilometer, the proportion of the urban population is 83.9%. ^[10]

Since the 1990s, the Yamalo-Nenets Autonomous District belongs to a small group of subjects of the Russian Federation with positive demographic indicators (natural population growth). At the end of 2021, this figure was 6.3 people per 1 thousand population, which allowed the Yamalo-Nenets Autonomous District to take the fifth place in the Russian Federation and the first place in the Ural Federal District). As of 04/01/2022, there is a positive trend (fourth place in the Russian Federation and first place in the Ural Federal District).

Tables 1 and 2 present data on the foreign trade turnover of the Yamalo-Nenets Autonomous Okrug for the period 2020-2022. ^[11]

Table 1

The dynamics of exports of the Yamalo-Nenets Autonomous Okrug for the period

2020-2022

According to the data shown in table 1, exports have decreased by 9.41 percentage points over the period 2020-2022, due to the consequences of the pandemic of a new coronavirus infection.

Table 2

Dynamics of imports of the Yamalo-Nenets Autonomous Okrug for the period

2020-2022

The data shown in table 2 for the period 2020-2022 allowed us to conclude that, unlike exports, there is an increase in imports of goods by 296.95 percentage points.

In general, the data presented in the tables allow us to conclude that in 2022 the Yamalo-Nenets Autonomous Okrug demonstrates relatively positive dynamics in terms of exports and imports.

An analysis of the commodity structure of exports and imports of the Yamalo-Nenets Autonomous Okrug, based on static data at the end of 2022, shows that fuel and energy products occupy a dominant position in the exports of the Yamalo-Nenets Autonomous Okrug, mineral products - 99% of the share of total exports.

By the end of 2022, the main consumers of products produced in the Yamalo-Nenets Autonomous Okrug are the following countries: China (US$306 million), the Netherlands (US$111 million), France (US$98.6 million), Spain (US$44 million), India (US$23 million), the United Kingdom (US$20 million), Norway (US$12 million USA). These countries account for about 80% of the total exports of the Yamalo-Nenets Autonomous Okrug. However, of the countries represented, only one country is currently included in the list of friendly countries. Here we are talking about China, which accounts for 38.9% of the total exports of the Yamalo-Nenets Autonomous Okrug.

Imports of the Yamalo-Nenets Autonomous District in 2022 are represented by the following commodity structure: machinery, equipment and vehicles account for 87.54% of total imports, metals and products made from them account for 11.38%, chemical industry products account for less than 2% of the total import structure.

The main importing countries of the Yamalo-Nenets Autonomous Okrug at the end of 2022: China (201 million US dollars), Germany (32 million US dollars), Italy (28 million US dollars), Turkey (6.3 million US dollars). Unlike exporting countries, friendly countries account for more than 70% of imports in the list of importing countries.

It should be noted that in the Yamalo-Nenets Autonomous Okrug as a whole, the share of exports to unfriendly countries is more than 50%, the situation is somewhat different in the issue of imports, here, unlike exporting countries, in the list of importing countries, friendly countries account for 74% of imports from the total volume of imports.

The unique location of the Yamalo-Nenets Autonomous Okrug to a certain extent sets the course for the formation of a logistic model of year-round supplies within the framework of an international transport corridor linking the supply of liquefied natural gas and other goods from the Arctic deposits of the Russian Federation to the markets of the Asia-Pacific countries.

Currently, the stable economic situation of the Yamalo-Nenets Autonomous Okrug is evidenced by the high level of investments in fixed assets. In 2022, the Yamalo-Nenets Autonomous District took the 5th place in the Russian Federation as an investment-active region. According to the Federal State Statistics Service, the amount of investments in fixed assets in the autonomous Okrug in 2022 amounted to 2.8 million rubles on average per capita, which is almost 15 times higher than the average in the Russian Federation as a whole ^[12]. 

The volume of investments in absolute terms for the analyzed period amounted to 1.4 trillion rubles, which made it possible to take the second place in this indicator in the Russian Federation.

Undoubtedly, the fuel and energy complex is an essential element in ensuring global energy security and the basic branch of the economy of the Yamalo-Nenets Autonomous District.  As part of state support for the development of the fuel and energy complex of the region's economy, it is planned to attract funds in the amount of at least 1,183 billion rubles by 2030 as a result of the implementation of priority investment projects, the total volume of which is more than 5 trillion rubles. ^[13].

To date, a number of large-scale projects are being implemented by the largest oil and gas producing enterprises in the Yamalo-Nenets Autonomous Okrug:

1. Yamal LNG is an integrated project for the extraction, processing and transportation of liquefied natural gas with a capacity of 17.5 million tons per year based on the Yuzhno-Tambeyskoye field;

2. Arctic LNG is a natural gas liquefaction plant based on the resource base of the Salmanovskoye field with a total capacity of 19.8 million tons of LNG per year;

3. Arctic LNG-2: construction of a natural gas liquefaction plant using gravity-type bases on the resource base of the Salmanovskoye (Morning) field, comparable in capacity to the integrated project for the extraction, liquefaction and supply of natural Yamal LNG.

4. Ob GHK is a project of the NOVATEK PJSC enterprise aimed at creating the necessary infrastructure for the production of ammonia and methanol ^[14].

In general, the favorable outlook for the prospects of the global LNG market allows us to optimistically consider the future of transnational projects in the Yamalo-Nenets Autonomous District, first of all, the effectively functioning Yamal LNG and the Yamal LNG-2 under formation.

By the end of 2022, the gross regional product reached 5.5 trillion. rubles, demonstrating a positive trend (31%) in comparison with the indicator in 2021. In terms of the gross regional product produced per capita, the Yamalo-Nenets Autonomous District ranks 1st in the Ural Federal District and 2nd in the Russian Federation. The level of gross regional product per inhabitant of the region is higher than the average in the Russian Federation as a whole. The volume of industrial production per capita in the Yamalo-Nenets Autonomous District by the end of 2022 amounted to 10 747.3 thousand rubles ^[15].

In 2022, the index of production in the field of mining in the Yamalo-Nenets Autonomous Okrug decreased by 2.3 percentage points, compared with the same indicator in 2021. The decrease in this indicator is due to the refusal of a number of European Union countries to purchase Russian pipeline gas, as well as a partial ban on the import of Russian oil. In addition, this is caused by the consequences of a complete shutdown of supplies via the Nord Stream.

In 2022, 33.5 million tons of gas condensate were produced, which is 14.8 percentage points higher than in 2021. The extraction of other natural resources, in particular sand, shows a 42% growth trend in 2022. There is also a significant increase in the share of manufacturing.

The Yamalo-Nenets Autonomous Okrug tops the rating of regions of the constituent entities of the Russian Federation in terms of construction work per capita (at the end of 2022, this indicator per capita amounted to 282.6 thousand rubles).

At the present stage, one of the fundamental goals in expanding foreign economic relations of the Yamalo-Nenets Autonomous District is to strengthen international cooperation and the need for active formation of projects in the development of non-primary exports (transport and logistics, tourism services and production of traditional types of economic activities of indigenous small peoples of the North).

A striking example of establishing a partnership through external relations is the supply of products for export sold by LLC Salekhardsky Combine, an enterprise of the Yamalo–Nenets Autonomous Okrug registered in Salekhard, to the Republic of Kazakhstan. In 2021, export deliveries to the Republic of Belarus were also organized ^[16].

In order to expand business ties between export–oriented small and medium-sized businesses of the Yamalo-Nenets Autonomous Okrug, events aimed at forming a holistic view of the region's export potential are implemented annually within the framework of exhibition, fair and congress events held with the participation of enterprises of the region at the international and regional levels. In the period from June 7, 2022 to June 11, 2022, enterprises of the Yamalo-Nenets Autonomous District focused on exporting products took part in the Belarusian Agro-industrial Week, within the framework of which international specialized exhibitions "Belagro-2022" were held.

In the period from December 6, 2022 to December 9, 2022, Salekhard became the venue for the first forum of young leaders of the Arctic Council countries "ICE: Inspiration. Communication. Efforts", which was attended by 100 young activists, creators, entrepreneurs, volunteers and students from 18 to 35 years old from the Russian Federation, Denmark, Iceland, Canada, the Kingdom of Norway, and the United States of America.

From November 29 to December 3, 2021, an international field seminar of the EALLU Arctic Council project "Indigenous Youth, food Culture and Changes in the Arctic" was held in the capital of Yamal with the participation of representatives of the International Center for Reindeer Husbandry, board members of the Association "Reindeer Herders of the World", indigenous youth from the Republic of Sakha, Yamal, the Kingdom of Norway and the Kingdom of Sweden. The main focus of the event was on indigenous languages, food culture and the study of local traditions.

Coverage of the problems and promising areas for the development of foreign economic relations in the region should begin with the fact that today only a few enterprises in the Yamalo-Nenets Autonomous Okrug – MP Yamal Deer, MK Payuta, LLC Siberian Deer are focused on exporting products. There are several times more potentially non-primary suppliers to foreign markets in the Yamal-Nenets Autonomous District. It is necessary to create favorable conditions for their development and expansion of the region's foreign economic relations. In this regard, it seems promising to support a local brand by promoting it at various levels, primarily at the regional and international levels through the activation of media opportunities.

The Yamalo-Nenets Autonomous Okrug, with the necessary support at various levels, undoubtedly has the ability to actively participate in transport and logistics services, both for its own and transit goods flows, and has, among other things, scientific and technological potential.

In order to expand foreign economic relations, it is also advisable to increase the volume of mutual trade with the CIS countries. It should be noted that many domestic manufacturers, under the conditions of sanctions restrictions, have created additional production facilities in friendly countries – the Republic of Kazakhstan, the Republic of Belarus, the People's Republic of China, and the United Arab Emirates.

An increase in mutual trade turnover with the CIS countries will, among other things, improve the economic performance of the country as a whole. Speaking about cooperation with the Asia-Pacific countries, it should be noted that the Russian Federation is an active member of APEC, with which trade turnover increased by 10.2% in the first half of 2023.

Among the promising directions for the development of foreign economic relations of the Yamalo-Nenets Autonomous District, it should be noted the expansion of exports of agricultural products. This area in the region's economy is currently one of the priorities, but due to the influence of many factors and sanctions restrictions, including, the development of this industry seems difficult. Experts note that overexploitation of plant resources and depletion of forage stocks have a negative impact on reindeer husbandry. In turn, due to poaching, there is a decrease in the number of fish, and in areas of increased pollution, there is a loss of fishery rivers and lakes.

In this regard, it is advisable to build the following algorithm in order to expand the export of products from the sectors of the region's economy:

1. Modernization of the sphere of production of fuel and energy complex products and the development of commodity exports of the agricultural sector:

1) attracting and retaining highly qualified personnel;

2) introduction and development of digital technologies;

3) ensuring social and economic transformation;

4) scientific support of the agro-industrial complex;

5) support for small and medium-sized businesses in the agricultural sector, including traditional activities of indigenous peoples of the North (reindeer husbandry, fishing, handicrafts);

2. Increasing the investment attractiveness of the Yamalo-Nenets Autonomous Okrug for the development of regional industries:

1) attracting investments and launching new projects;

2) optimization of production processes;

3. Modernization of the innovation sphere:

1) attracting young scientific personnel at the enterprises of the fuel and energy sector;

2) creation of new research laboratories and research and production centers;

3) subsidizing part of the costs associated with the purchase of equipment in order to create, and (or) develop, and (or) modernize the production of products in the region using its own scientific developments.

As a result of the implementation of the proposed promising directions, there will be an increase in the recognition and competitiveness of the products of the Arctic region, as well as the investment attractiveness of the Yamalo-Nenets Autonomous Okrug and the development of traditional activities of the indigenous peoples of the North.

Conclusions

Summing up the research, it should be concluded that the Yamalo-Nenets Autonomous Okrug has established itself as an active participant in the implementation of the main goals of the foreign policy of the Russian Federation. The unique geographical location of the district in the Arctic zone, the availability of hydrocarbon reserves, cooperation with foreign partners in the extraction and production of LNG, as well as the preservation of culture and traditional industries of indigenous peoples make the Yamalo-Nenets Autonomous Okrug an important player on the world stage, and allows strengthening the position of the Russian Federation in international relations.

Projects for the extraction, processing and transportation of liquefied natural gas implemented on the territory of the Yamalo-Nenets Autonomous District contribute to the socio-economic development of the region, enrich its foreign trade potential, dictate the need to develop customs infrastructure and use the Northern Sea Route for uninterrupted transportation of hydrocarbons and ensure the economic security of the Russian Federation.

At the same time, the conducted research allowed us to state that today the share of exports of products not related to the extraction and processing of hydrocarbons is disproportionately small. At the same time, the export potential of the "non-primary" industries of the Yamalo-Nenets Autonomous District has real growth prospects. In order to enter the foreign market, suppliers of such products need to support the local brand by promoting it at the regional and international levels by activating media opportunities and creating favorable conditions for the development of entrepreneurship.

To overcome dependence on unfriendly countries, it is necessary to develop not only foreign economic relations between the BRICS countries, where the Russian Federation is an active member, as well as the countries of the South African region, but also to search for reliable sales markets for small and medium-sized businesses, make efforts to find new partners and increase supplies from Asian countries, This will contribute to the development of foreign economic relations between the Ural Federal District as a whole and the Yamalo-Nenets Autonomous Okrug as a region within its structure.