Exports of many medical devices in tech-heavy markets—such as diagnostic imaging, ophthalmology, cardiovascular, and patient monitoring devices—are likely to bypass recent tech sanctions imposed on Russia as these devices often serve an essential purpose and have few domestic substitutes available within the Russian market, says GlobalData. However, the leading data and analytics company notes that supply issues will instead arise from the reduced buying power of the rouble and rising import costs resulting from global economic sanctions.

In late February 2022, the US Department of Commerce imposed restrictions on high-tech exports to Russia in response to the ongoing Russia-Ukraine conflict, citing concerns of use in military equipment. The list included semiconductors, computers, telecommunications equipment, sensors, lasers, and other technologies.

Jacob Fletcher, Medical Device Analyst at GlobalData, comments: “Despite these broad measures, export licenses will be granted on a case-by-case basis if items are deemed necessary for humanitarian and civilian needs.”

Russia has historically made efforts to bolster its domestic medical device industry and reduce its need for imports. In 2015, the Russian government restricted state procurement for a list of medical devices to domestic sources, provided two or more bids were submitted from manufacturers in Eurasian Economic Union (EAEU) countries. The list was largely comprised of lower-tech hospital and surgical supplies; however, it was further expanded in 2016 and 2021 to include some biochemical analysers, clinical microscopes, and surgical ultrasound and laser devices.

Fletcher adds: “Many high-tech devices are still imported into Russia to meet the demands of its healthcare system despite the country’s efforts to bolster its own industry. Developing these technologies domestically is often an expensive and slow research and development (R&D) process.

“In the near-term, Russian medical device imports will likely fall to counter rising costs. In future years, we may see imports shift towards cheaper alternative products and brands, with an increase in domestic production where available.”

For more information about how the Russia-Ukraine crisis is affecting industries, download GlobalData’s Ukraine Conflict: Executive Briefing.