Effect of Closed Cycle Economy for Sustainable Development of Russian Regions: Reserves and Prospects of Import Substitution

The article studies the concept of circular economy as an alternative of traditional linear model oriented to efficient use of natural resources, cutting wastes and development of closed material cycles. The basis of circular economy is formed by the principle of maximum use of resources through recycling and repeated use of materials. Transition to circular economy can become an important strategic element for Russia, especially in conditions of such challenges as dependence on import and sanctions. The article provides analysis of data concerning recycling and import of plastics in Russia, where considerable volumes of plastic wastes cannot be used due to insufficient development of recycling infrastructure. The proposed economic model shows that transition to recycling of 95% of imported plastics can both create a serious economic potential for import substitution and result in extra economic benefits, including new sources of revenues, jobs and transition to economy of closed cycle without necessity of raw material purchase with foreign currency. In conclusion the authors underlined the necessity of complex approach to effective recycling of plastics and cutting plastic wastes within the frames of goals of sustainable development in the Russian Federation.