The research identifies key problems within various sectors of the Russian economy that hinder sustainable growth and proposes solutions to address these issues. The chemical industry is very indicative because there is an urgent need for this industry to adopt advanced technology, invest in research and development, and promote sustainability on a new technological base. Addressing challenges requires significant state involvement. State guarantees can boost private investment, alleviating budgetary strain and bolstering anti-inflationary measures. However, this scenario unveils an institutional trap stemming from a lack of trust among market participants towards emerging reporting institutions, such as ESG principles. Russian investors prefer tangible dividends over integrated reporting, necessitating continued reliance on state initiatives for economic stimulus. The application of Public–Private Partnership mechanisms could offer solutions. The research used a qualitative and quantitative approach and analyzed data from government sources, companies’ reports, and relevant literature. This methodology ensures a comprehensive understanding of the research topic. Despite ESG reporting, private capital remains reluctant to invest in chemical industry enterprises due to their lack of profitability. This reluctance persists even though the industry requires investments to address technological lag and reduce dependence on imported raw materials. State programs and projects of industry modernization on the base of Industry 4.0 are currently the key factors in attracting private investments. The paper adds value to existing literature on the subject by presenting a unique perspective on the challenges faced by the industry. Its novelty resides in specific effects and issues analysis, solutions, and timely practical recommendations.