ABSTRACT
The Prime Minister of Russia Dmitry Medvedev believes that the import substitution is effectively implemented in industry and agriculture. The country's leadership believes, due to depreciation of the ruble, products of Russian companies became somewhat more competitive in domestic and especially foreign markets. This chapter discusses the problems and develops effective instruments for the import substitution in the agro-industrial complex using the analysis of production and consumption relationship in terms of technological paradigms. The import substitution is termination or reduction of import for certain goods by their displacement (replacement) in the domestic market of the country with similar domestic goods having a higher level of consumer properties and the cost, which does not exceed the imported goods cost. The suggested instruments for the implementation of import substitution strategy will enhance the competitiveness of domestic agricultural products, reduce the costs of both production and distribution, and consequently, increase the producers' income.
