Industry specifics of liquidity dependence in Russia and vulnerability to financial shocks

Industries that require large working capital as compared to revenue are, in general, more sensitive to changes in debt financing availability. It makes such industries more vulnerable to financial crises when opportunities to attract debt financing usually become much scarcer. In Russia, the number of such industries is large, and they are more important to the economy than in Europe. Construction, real estate operations, agriculture and certain manufacturing industries, among others, are, perhaps, the most vulnerable to financial turmoil. For this reason, financial shocks can affect the Russian economy to a greater extent than that of the European countries. Therefore, maintaining financial stability requires particularly close monitoring and analysis of the situation in these industries.