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National Interests: Priorities and Security
 

The development of Iran's industry during the period of sanctions

Vol. 20, Iss. 12, DECEMBER 2024

Received: 7 May 2024

Accepted: 23 May 2024

Available online: 16 December 2024

Subject Heading: ECONOMIC SECURITY

JEL Classification: F51, O5, O25

Pages: 2255-2272

https://doi.org/10.24891/ni.20.12.2255

Aleksandr E. VARSHAVSKII Central Economics and Mathematics Institute, RAS (CEMI RAS), Moscow, Russian Federation
varshav@cemi.rssi.ru

https://orcid.org/0000-0001-8229-3692

Viktoriya V. DUBININA Central Economics and Mathematics Institute, RAS (CEMI RAS), Moscow, Russian Federation
vDubinina07@yandex.ru

https://orcid.org/0000-0002-2785-1599

Subject. This article discusses the impact of international sanctions on Iran's economic policy.
Objectives. The article aims to analyze the development of manufacturing industries in Iran in the context of sanctions in general, and the automotive and aviation industries in particular.
Methods. For the study, we used the mathematical research methods.
Results. Based on the analysis, the article shows that Iran's manufacturing industries have developed and keep on developing under sanctions due to cooperation with other countries, primarily with China, the import of the necessary components through third countries, and the creation of own models of machinery and equipment. Despite all the restrictions, the Iranian automotive industry has been able to achieve a high level of localization of components, and particular attention is paid to the production of unmanned aerial vehicles.
Conclusions. Iran has been able to get adapted to the sanctions imposed on it for its product diversifying markets, expanding cooperation with third countries and striving for self-sufficiency in production. It should be noted that the sanctions were introduced gradually. The experience of developing manufacturing industries in Iran during the period of sanctions can be used by other countries.

Keywords: Iran, manufacturing industry, sanctions, UAV, automotive industry

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