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Economy of Russia

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Rank  
Currency Russian ruble (RUB)
Labour force 75.81 million
Export goods petroleum and petroleum products, natural gas, wood and wood products, metals, chemicals, and a wide variety of civilian and military manufactures ()
Import goods vehicles, machinery and equipment, plastics, medicines, iron and steel, consumer goods, meat, fruits and nuts, semifinished metal products ()

 

1.The economy of Russia is the twelfth largest economy in the world by nominal value and the sixth largest by purchasing power parity (PPP). Russia comprises roughly three-quarters of the territory of the former Soviet Union. Russia has an abundance of natural gas oil, coal, and precious metals. It is also rich in agriculture. Oil and gas exports continue to be the main source of hard currency. Russia is a leading producer and exporter of minerals, gold, and all major fuels.

 

2.Russia has undergone significant changes since the collapse of the Soviet Union, moving from a centrally-planned economy to a more market-based and globally-integrated economy. Economic reforms in the 1990s privatized most industry, with notable exceptions in the energy and defense-related sectors. Nonetheless, the rapid privatization process, including a much criticized "loans-for-shares" scheme that turned over major state-owned firms to politically-connected "oligarchs", has left equity ownership highly concentrated.

 

3.The protection of property rights is still weak and the private sector remains subject to heavy state interference. Russia was one of the hardest hit during the global financial crisis, since it already has an economy dependant on high oil prices. The Russian economy is still commodity-driven despite its growth. Payments from the fuel and energy sector in the form of customs duties and taxes accounted for nearly half of the federal budget's revenues.

 

4.The mineral-packed Ural Mountains and the vast oil, gas, coal, and timber reserves of Siberia and the Russian Far East make Russia rich in natural resources. However, most such resources are located in remote and climatically unfavorable areas that are difficult to develop and far from Russian ports. The Russian fishing industry is the world's fourth-largest, behind Japan, the United States, and China.

 

5.Russian agriculture begun to show signs of improvement due to organizational and technological modernization. Northern areas concentrate mainly on livestock, and the southern parts and western Siberia produce grain. Restructuring of former state farms has been an extremely slow process. Private farms and garden plots of individuals account for over one-half of all agricultural production. There is also a growing gap between rich and poor in Russia. The incomes of the rich grew from approximately 14 times to 17 times larger than the incomes of the poor.


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