Prospects and limitations of Russia’s participation in regional and global value chains

Abstract

The article explores various aspects of Russia’s integration into the international production system, describes quantitative and qualitative parameters of country’s participation in crossborder value chains, including within the Eurasian economic union. Special attention is paid to foreign trade regulations sensible to Russia’s engagement in global value chains: issues of eff ective protection rates, customs regulation (i.a. application of customs processing procedure on the customs territory), trade facilitation, implementation of a “single window” technology for foreign trade operations; Russia’s and EAEU involvement in preferential trade agreements with third countries, etc. An assessment is made regarding mechanisms for the promotion of industrial cooperation and subcontracting activity in the EAEU, with the measures for introducing special preferential treatment in respect of cooperation products on the common market being suggested. Th e authors come to the conclusion that Russia’s potential for increasing its participation in regional and global value chains is subject to institutional and regulatory adjustments both at national and supranational levels.