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The article focuses on the development of an industrial policy towards modernization ofthe resource-intensive sectors of Russian economy based on the principles of BestAvailable Techniques (BATs) and secondary resource recycling (recovery). BATs areregarded as benchmarks for the regulators as they draw up mandatory requirements forthe industry. This way industries would be motivated to introduce innovations andimplement modernization programs, while the regulators should set targets for such atransformation. The m...