FINANCIAL STABILITY AND PROFITABILITY OF LEADING AGRIBUSINESS ENTERPRISES IN THE REPUBLIC OF TATARSTAN UNDER SANCTIONS

DOI 10.12737/2073-0462-2025-20-3-99-106 УДК 338.43:338.12(470.41)

Abstract

The current stage of Russian economic development is characterized by foreign policy and economic pressure from a number of Western countries. Sanctions restrictions, introduced in 2014 and sharply strengthened after 2022, have affected virtually all sectors of the national economy, including agro-industrial complex - a key sector ensuring the country’s food security. Agro-industrial complex plays a strategic role in ensuring Russia’s independence from food imports. Sustainable and profitable agricultural enterprises not only maintain but also increase domestic production of essential food products, which is especially important given the closure of traditional foreign markets and risk of supply disruptions. Sanctions have led to a sharp increase in the prices of imported resources: seeds, crop protection products, agricultural machinery and spare parts. Furthermore, logistics routes have changed, increasing transportation costs and delivery times. Limited access to foreign technologies and equipment requires farmers to quickly adapt: switching to domestic equivalents, localizing production chains, and implementing digital solutions and innovations. All of these processes require significant investment, which is only possible if enterprises are financially stable and capable of generating profits. In response to the sanctions, the government has stepped up support measures for the agricultural sector: subsidizing loan interest rates, partially compensating for equipment purchase costs and supporting processing plants and exporters. However, the effectiveness of these measures directly depends on the financial literacy and sustainability of the enterprises themselves – only stable enterprises are able to effectively utilize state support for long-term growth. An analysis of the experience of agricultural enterprises in the Republic of Tatarstan allows us to identify effective adaptation strategies, assess the role of regional policy, and outline paths for further development of the industry in the face of ongoing geopolitical instability. An empirical analysis of six leading agricultural enterprises in the Republic of Tatarstan for 2019-2023 revealed that total revenue increased from 13.4 billion to 19.9 billion rubles, while net profit decreased from 6.0 billion rubles in 2020 to 1.7 billion rubles in 2023, indicating a decline in operational efficiency. A panel regression analysis revealed no statistically significant relationship between debt burden and profitability (R2 = 0.0043; p = 0.912), while 45.8% of profit variance was explained by individual enterprise characteristics. These results highlight the need to shift from short-term adaptation to systemic financial sustainability through modernization, digitalization, and equity development. Thus, in the face of sanctions pressure and geopolitical instability, improving the financial stability and profitability of agricultural enterprises is becoming not simply a task of effective management, but a matter of national economic and food security. The Republic of Tatarstan, as one of the leaders in Russia’s agricultural sector, is an important example of a region where a systematic approach to agricultural management allows it to successfully overcome external challenges and ensure sustainable agricultural development.