Russia has a mixed middle-up economy with state ownership in the area of ​​economic strategic. The market reforms of the 1990s privatized many Russian industries and agriculture, with the exception of privatization in the energy and defense sectors.
Extensive geography of Russia is an important determinant of its economic activity, with some sources estimating that Russia contains more than 30 percent of the world's natural resources. The World Bank estimates the total value of Russia's natural resources at $ 75 trillion dollars. Russia relies on energy revenues to drive most of its growth. Russia has a lot of oil, natural gas, and precious metals, which make up the bulk of Russian exports. In 2012 the oil and gas sector accounted for 16% of GDP, 52% of federal budget revenues and over 70% of total exports. Russia is considered an "energy superpower". It has the largest proven natural gas reserves in the world and the largest exporter of natural gas. It is also the second largest oil exporter.
Russia has a large and sophisticated arms industry capable of designing and producing high-tech military equipment, including fifth-generation fighter jets, nuclear-powered submarines, firearms, short-range ballistic missiles. The value of Russian arms exports reached $ 15.7 billion in 2013 - second only to the United States. Major military exports from Russia include fighter aircraft, air defense systems, ships and submarines.
The economic development of this country is uneven geographically with the Moscow region contributing a very large part of the country's GDP. There has been a substantial increase in wealth inequality in Russia since 1990 (far more than China and other Eastern European countries). Credit Suisse has described the inequality of Russian wealth as very extreme compared to other countries that "deserve to be placed in a separate category." One study estimates that "the wealth held by wealthy Russians is about three times larger than official foreign exchange reserves, and is proportional to the large number of household financial assets held in Russia."
Video Economy of Russia
Economic history
Soviet economy
In the 1970s the Soviet Union entered the Age of Stagnation. The complex demands of the modern economy and inflexible administration overwhelm and limit the central planners. The volume of decisions facing planners in Moscow has been tremendous. The complicated procedure for bureaucratic administration seizes free and flexible communications required at enterprise level to address worker alienation, innovation, customers, and suppliers. From 1975 to 1985, corruption and data clutter became common practice among bureaucracies to report satisfactory targets and quotas that eradicated the crisis. Since 1986 Mikhail Gorbachev has been trying to tackle economic problems by moving toward a market-oriented socialist economy. But Gorbachev's policy failed to rejuvenate the Soviet economy. Instead, Perestroika began the process of political and economic disintegration, culminating in the breakup of the Soviet Union in 1991.
Transition to a market economy (1991-98)
After the collapse of the Soviet Union, Russia has undergone a radical transformation, moving from a centrally planned economy to a globally integrated market economy. The corrupt and haphazard privatization process reverses large state-owned enterprises into politically connected "oligarchs," which has resulted in highly concentrated shareholdings.
Yeltsin's radical program, market-oriented reforms came to be known as "shock therapy". It was based on an IMF recommendation and a group of top American economists, including Larry Summers. The result was disastrous, with real GDP falling by more than 40% in 1999, hyperinflation removing personal savings, crime and misery spread rapidly.
The majority of state enterprises are privatized amid a major controversy and then belong to insiders because it is much smaller than they value. For example, the director of a factory during the Soviet regime often became the owner of the same company. Under government protection, outrageous financial manipulation enriched a small group of people in key business and government positions. Many of them immediately invested their new wealth abroad resulting in massive capital flight.
The difficulty in collecting government revenues amid the collapse of the economy and the reliance on short-term loans to finance the budget deficit caused the 1998 Russian financial crisis.
In the 1990s Russia was the "biggest borrower" of the International Monetary Fund with a loan of $ 20 billion. The IMF was the subject of criticism to lend so much when Russia introduced little promised reforms for money and most of these funds could be "diverted from the intended purpose and included in the capital flows that leave the country illegally." ".
Recovery and growth (1999-2008)
Russia bounced back from the August 1998 financial crisis at a staggering pace. Most of the reasons for the recovery are the ruble devaluation, which makes domestic producers more competitive nationally and internationally.
Between 2000 and 2002, there were a large number of pro-growth economic reforms including comprehensive tax reforms, which introduced a fixed income tax of 13%; and extensive efforts in deregulation that improve the situation for small and medium-sized businesses.
Between 2000 and 2008, the Russian economy got a big boost from rising commodity prices. GDP grew an average of 7% per year. Revenue that can be discarded more than doubled and in dollar denomination increased eightfold. The volume of consumer credit between 2000-2006 increased 45 times, prompting an explosion in private consumption. The number of people living below the poverty line declined from 30% in 2000 to 14% in 2008.
However, inflation remains a problem, as the central bank is aggressively expanding its money supply to combat the ruble's appreciation. However, in 2007, the World Bank stated that the Russian economy achieved "unprecedented macroeconomic stability". As of October 2007, Russia maintained an impressive fiscal discipline with a budget surplus every year starting in 2000.
2009-14
Russian banks were hit by the global credit crisis in 2008, although no long-term damage was done thanks to a proactive and timely response by governments and central banks, which protect the banking system from the impact of the global financial crisis. A sharp, but brief recession in Russia followed by a strong recovery began in late 2009.
After 16 years of negotiations, Russia's membership to the WTO was accepted in 2011. In 2013, Russia was labeled a high-income economy by the World Bank.
Russian leaders have repeatedly talked about the need for economic diversification away from its dependence on oil and gas and growing the high-tech sector. In 2012, oil, gas and petroleum products accounted for more than 70% of total exports. This economic model seems to show its limits, when after years of strong performance, the Russian economy developed only 1.3% in 2013. Several reasons have been proposed to explain the slowdown, including a prolonged recession in the EU, which is Russia's largest trading partner, stagnant oil prices, lack of reserve industry capacity and demographic problems. Political turmoil in neighboring Ukraine adds to the uncertainty and depresses investment.
According to a survey provided by Financial Times in 2012, Russia came second with an economic performance among the G20, after Saudi Arabia. Estimated economic performance on seven steps: Gross domestic product growth, budget deficit and government debt for 2012; economic recovery - output compared to the pre-crisis peak; changes in debt since 2009; unemployment changes from 2009 to 2013; and, finally, the deviation of the checking account from the balance. The Forbes magazine listed Russia as # 91 in the best countries for business. The country has seen substantial improvements recently in areas such as innovation and trade freedom. (Forbes ranked each country in a number of categories and draws from various sources such as the World Economic Forum, World Bank, and Central Intelligence Agency). Since 2008, Moscow has been by Forbes magazine repeatedly named the world's billionaire capital.
2014-present
After the annexation of the Crimea in March 2014 and Russian involvement reported in the ongoing conflict in Ukraine (rejected by Russia), the United States, the European Union (and several other European countries), Canada and Japan imposed sanctions on Russia's financial, energy and defense sector. Some EU member states are divided into further sanctions, but have been nominated to drop the sanctions route. This led to a decline in the Russian ruble and fueled fears of Russia's financial crisis. Russia responded with sanctions against a number of countries, including a one-year period of total food imports from the EU and the United States.
According to the Russian economy ministry in July 2014, GDP growth in the first half of 2014 was 1%. The ministry projected 0.5% growth for 2014. Russia's economy grew better than expected by 0.6% in 2014. In the 2nd quarter of 2015 inflation, compared with second quarter 2014, was 8%; the economy has contracted by 4.6% as the economy enters recession. To balance the state budget by 2015, the price of oil should be around US $ 74 compared to US $ 104 for 2014. Russia used to have about US $ 500 billion in foreign exchange reserves, but has US $ 360 billion in the summer of 2015 and plans to continue collecting foreign exchange reserves for years to come, until they reach another $ 500 billion.
According to Herman Gref of Sberbank, Russia's economic contraction is "not a crisis but a new reality" to be adapted, especially because of the low oil price. He also presents a number of metrics that show change - GDP has fallen 3.7%, revenues - 4.3%, salary - by 9.3% and inflation reaching 12.9%. However, during December 2015 reported by the Moscow Times that the number of people living in or below the poverty line, "those with monthly income of less than 9,662 rubles ($ 140)" increased by more than 2.3 million people. Russia is considered one of the most unequal of the world's major economies.
During 2014-2015 a quarter of banks in Russia leave the market, the cost of bank guarantees of Russian funds reached 1 trillion rubles plus additional government funds to recapitalize banks reached 1.9 trillion rubles.
By the end of 2016, the United States imposed further sanctions on the Russian Federation in response to what the US government says as Russian interference in the 2016 US elections.
By 2016, Russia's economy is the sixth largest in the world by PPP and the twelfth largest in market exchange rates. Between 2000 and 2012, Russian energy exports fueled rapid growth in living standards, with real incomes rising by 160%. In dollar denominations, this number has increased more than seven-fold in disposable income since 2000. In the same period, unemployment and poverty more than half and life satisfaction self-assessed by Russians also increased significantly. This growth is the combined result of the explosion of commodities in the 2000s, high oil prices, and wise economic and fiscal policies. However, this profit has been unevenly distributed, as the 110 richest people are found in the report by Credit Suisse to own 35% of all financial assets held by Russian households. Russia also has the second largest volume of banned expenditure, after losing more than $ 880 billion between 2002 and 2011 in this way. Since 2008 Forbes has repeatedly referred to Moscow as "the world's billionaire capital".
The Russian economy is at risk of entering a recession starting early 2014, mainly because of falling oil prices, sanctions, and subsequent capital breakouts. While in 2014 GDP growth remains positive at 0.6%, by 2015 the Russian economy shrank by 3.7% and is expected to shrink further by 2016. However, the World Bank and IMF predict that the Russian economy will begin to recover by 2017 In 2016, the Russian economy rebounded with a 0.3% GDP growth and was officially out of recession. Growth continues in 2017, with a 1.5% increase.
In January 2016, the US company, Bloomberg, rated the Russian economy as the 12th most innovative in the world, up from 14 in January 2015 and 18 in January 2014. Russia has the 15th highest patent application rate in the world, 8 of the company's high-tech public, such as the Internet and aerospace and the highest passing rate of all three scientists and engineers. Former finance minister Alexei Kudrin said Russia needs to reduce geopolitical tensions to improve its economic conditions.
In May 2016, the average nominal monthly wage fell below $ 450 per month, and taxes on individual income were paid at the 13% rate on most revenues. Approximately 19.2 million Russians live below the national poverty line by 2016, rising significantly from 16.1 million in 2015.
A poll completed in 2018 among 1400 Russian non-hydrocarbon business managers shows a high degree of pessimism, with the majority portraying the country's economic situation as "catastrophic". 73% of respondents in big business and 77% in medium and small scale are facing "crisis" while only 4% describe it as "good". 50% suffer from the rise in real tax rates, 60% were hit by increased utility tariffs.
Maps Economy of Russia
Growth of Russian GDP
The annual growth of Russian GDP according to the World Bank:
In 2017, Russia's GDP growth is about 1.5 percent compared to the previous year. It was the first year of growth since 2014.
Currency and central bank
Russian Ruble is the currency unit of the Russian Federation. It is also accepted as a legitimate means of payment in parts of the states recognized by Abkhazia and South Ossetia and the unknown Republic of Donetsk and the People's Republic of Lugansk.
The Russian monetary system is managed by the Bank of Russia. Founded on July 13, 1990 as the State Bank of RSFSR, the Bank of Russia took over the responsibility of the central bank after the break-up of the Soviet Union in 1991.
According to the Constitution, the Bank of Russia is an independent entity, with the primary responsibility of protecting the stability of the national currency, the ruble. It is also the head of regulators and lenders of last resort for the banking industry in Russia. The Bank of Russia is governed by a board of directors, headed by a governor appointed by the President of Russia.
The large current account surplus led to a rapid real appreciation of the ruble between 2000 and 2008. The Bank of Russia seeks to combat this trend by aggressively collecting foreign currency reserves. This is a major cause that contributes to a relatively high inflation rate during this period. The policy of the central bank is growing following the global financial crisis. Instead of targeting a fixed exchange rate vs. dollar and euro bucks, the Bank of Russia shifts its focus to inflation targeting. In April 2012, Russian inflation hit a record low of 3.6%.
The Central Bank of Russia has planned to free float the Russian ruble and has expanded the trading currency and expects the ruble to be completely free-floating by 2015. However, the ruble has fallen significantly since 2013 when the central bank announced the plan. On October 3, 2014, the USD-RUB exchange reached 40.00 Russian rubles to the USD, up from 32.19 rubles at the same time last year; this represents a decrease of 24.26%. The Russian Central Bank has stated that Russian banks are able to withstand the devaluation of up to 25% -30% in January 2014 when the ruble has just begun to decline, therefore central bank intervention may be required; However, plans for currency-free drift continue in January 2014. The Russian central bank spends $ 88 billion to stem the fall of the ruble in 2014. Due to central bank intervention and stronger oil prices, the ruble rebounds sharply in early 2015. In April 2015, Ksenia Yudaeva, First Deputy Governor of the Bank of Russia, stated that he believes the currency has stabilized at the current rate of about 50 rubles to the USD.
Along with the rapid devaluation of the ruble, inflation in Russia has greatly increased. In October 2014 the inflation rate was reported to be 8%, although this was well below the 2333.30% inflation rate experienced in 1992. In November 2017, inflation was at its lowest point since the fall of the Soviet Union by 2.5%.
Public policy
Fiscal Policy
Russia is expected to have a Government Budget deficit of $ 21 billion by 2016. The budget deficit narrows to 0.6% of GDP by 2017 from 2.8% in 2016.
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On January 1, 2004, the Russian Government established the Russian Federation Stabilization fund as part of the federal budget to balance it if oil prices fell. On February 1, 2008, the Stabilization Fund was divided into two parts. The first part is a reserve fund equal to 10% of GDP (10% of GDP equivalent to about $ 200 billion now), and will be invested in the same way as the Stabilization Fund. The second part is the National Prosperity Fund of the Russian Federation. Vice Minister of Finance Sergei Storchak estimates it will reach 600-700 billion rubles on February 1, 2008. The National Prosperity Fund will be invested into riskier instruments, including shares of foreign companies.
Public debt
Russia has a very low debt to GDP ratio, this ratio is among the lowest in the world. Most of the external debt is private. By 2016, the ratio of debt to GDP is 12%.
As a major substitute for the Soviet Union, Russia took responsibility for paying off the external debt of the Soviet Union.
Protectionism
Russia is one of the leading countries for protectionist policies. According to the independent Global Trade Alert, Russia implements a significant protectionist policy. The strategic trade bloc of Russia comprising Russia, Belarus and Kazakhstan is responsible for most protectionism around the world during 2013. Of protectionist policies, 43% are targeted bailouts and direct subsidies for local companies, while 15% are tariffs. Since 2008, Russia has implemented many protectionist measures, on the same scale as India, but the most protectionist country is the United States.
Corruption
Starting from Putin's second term, very few corruption cases became the target of anger. Putin's system is extraordinary for the incorporation of public and business services that are everywhere and open, as well as the use of relatives, friends and acquaintances to benefit from spending budget and taking over state property. Corporations, property, and ground attacks are common.
Corruption in Russia is considered a significant problem affecting all aspects of life, including public administration, law enforcement, health care and education. The phenomenon of corruption is largely determined in the historical model of public government in Russia and is associated with the general weakness of the rule of law in Russia. According to the 2016 Transparency International Corruption Perceptions Index, Russia ranks 131 places out of 176 countries with a score of 29.
There are many estimates of the true cost of corruption. According to official government statistics from Rosstat, the "shadow economy" occupies only 15% of Russia's GDP in 2011, and this includes unreported wages (to avoid taxes and social payments) and other types of tax evasion. According to Rosstat's estimates, corruption in 2011 amounted to only 3.5 to 7% of GDP. In comparison, some independent experts argue that corruption consumes as much as 25% of Russia's GDP. The World Bank report puts this figure at 48%. There is also an interesting shift in the main focus of bribery: while previous officials take bribes to close their eyes to lawlessness, they now take them only to perform their duties. Many experts admit that in recent years corruption in Russia has become a business. In the 1990s, employers had to pay different criminal groups to provide " krysha " (literally, "roof", that is, protection). Currently, this "protective" function is performed by officials. A corrupt hierarchy is characteristic of various economic sectors, including education.
Ultimately, the Russians pay for this corruption. For example, some experts believe that the rapid rise of monthly bills significantly outweighs the rate of inflation is a direct result of the high volume of corruption at the highest level.
Sector
In Russia, service is the largest economic sector and accounts for 58% of GDP. In the most important segment services are: wholesale and retail trade, repair of motor vehicles, motorcycles and personal and household goods (17% of total GDP); public administration, health and education (12%); real estate (9%) and storage and transportation communications (7%). Industry accounts for 40% of total output. Mining (11% of GDP), manufacturing (13%) and construction (4%) are the most important industry segments. Agriculture accounts for the remaining 2%.
Primary
Energy
The Ural Mountains are filled with tremendous minerals and fossil fuels (oil, gas, coal), and Siberian and Russian reserves of Far East make Russia rich in natural resources, which dominate Russian exports. Oil and gas exports, in particular, continue to be a major source of hard currency.
The petroleum industry in Russia is one of the largest in the world. Russia has the largest reserves, and is the largest exporter of natural gas. It has the second largest coal reserves, the eighth largest oil reserves, and is the world's largest exporter of oil in absolute numbers. However, per capita oil production in Russia is not that high. In 2007, Russia produced 69.603 bbl/day per 1,000 people, far less than Canada (102,575 bbl/day), Saudi Arabia (371,363 bbl/day), or Norway (554,24 bbl/day), but more than doubled the US (28,083 bbl/day) or English (27,807 bbl/day).
Mine
Russia is also a leading mineral and gold producer and exporter. Russia is the largest diamond producing country in the world, estimated to produce more than 33 million carats by 2013, or 25% of global output worth more than $ 3.4 billion, with state-owned ALROSA accounting for about 95% of all Russian production.
Expecting the area to be more accessible as climate change melts the Arctic ice, and believes that the region contains untapped oil and natural gas reserves, Russian explorers on August 2, 2007 on a submarine implanted a Russian flag on the Arctic sea floor, lurking the claims of energy sources up to the North Pole. The reaction to the event was mixed: President Vladimir Putin congratulated the explorers for his "extraordinary scientific project", while Canadian officials declared the expedition to be a public show.
Under the Federal Law " On a Continental Shelf Development " after a proposal from a federal agency managing the state mineral resources fund, or its territorial office, the Russian government approved a list of some parts of the mineral resources authorized for development without contests and auctions, some parts of federal interest from the Russian continental shelf, some part of the mineral resources of federal interest located in Russia and stretched on its continental shelf, some federal deposit gas gases are submitted to seek and develop mineral resources under a joint license. The Russian government is also empowered to decide on the submission of the previously mentioned parts of mineral resources for development without contests and auctions.
Forestry
Russia has more than a fifth of the world's forests, making it the largest forest country in the world. However, according to a 2012 study by the Food and Agriculture Organization of the United Nations and the government of the Russian Federation, the huge potential for Russian forests is underutilized and the Russian share of global trade in forest products is less than 4%.
Agriculture
Russia consists of about three quarters of the former Soviet Union. After the breakup of the Soviet Union in 1991 and after nearly 10 years of decline, Russian agriculture began to show signs of improvement due to the modernization of organizations and technology. The northern region concentrates mainly on livestock, and the southern and western parts of Siberia produce grains. Restructuring of the former state pond has become a very slow process. The new land codes endorsed by the Duma in 2002 should speed up restructuring and attract new domestic investment into Russian agriculture. Private farmland and plots of peoples' gardens cover more than half of all agricultural production. In 2016 agriculture has surpassed the arms industry as Russia's second largest export sector after oil and gas.
Industry
Defense industry
Russian defense industry employs 2.5-3 million people, accounting for 20% â € <â €
Aircraft manufacturing is an important industrial sector in Russia, employing approximately 355,300 people. The Russian aircraft industry offers a portfolio of competitive international military aircraft such as the MiG-29 and Su-30, while new projects like the Sukhoi Superjet 100 are expected to revive the luck of the civilian aircraft segment. In 2009, a company owned by United Aircraft Corporation sent 95 new fixed-wing aircraft to its customers, including 15 civilian models. In addition, the industry produced more than 141 helicopters. It is one of the most technologically intensive high-tech sectors and employs the most skilled personnel. The production and value of the military aircraft branches far outpaced the other defense industry sectors, and aircraft products accounted for more than half of the country's arms exports.
The Russian space industry consists of more than 100 companies and employs 250,000 people. The largest company of this industry is RKK Energia, a major manned space shuttle contractor. Leading vehicle launchers are Khrunichev and TsSKB Progress. The largest satellite developer is Reshetnev Information Satellite Systems, while NPO Lavochkin is a major developer of interplanetary probes.
Automotive industry
Automobile production is a significant industry in Russia, which directly employs about 600,000 people or 0.7% of the country's total workforce. In addition, the industry supports approximately 2-3 million people in related industries. Russia is the 15th largest car manufacturer in the world in 2010, and accounts for about 7% of world production. In 2009 the industry produced 595,807 light vehicles, down from 1,469,898 in 2008 due to the global financial crisis. The largest companies are manufacturers of light vehicles AvtoVAZ and GAZ, while KAMAZ is a leading heavy vehicle manufacturer.
Electronics
Russia is experiencing microelectronic reconstitution, with the rise of JCS Mikron.
Services
Retail
In 2013, Russia spends 60% of their pre-tax revenue, the highest percentage in Europe. This is possible because many Russians do not pay rent or house payments, owning their own homes after the privatization of Soviet-owned housing. Shopping centers are very popular among international investors and buyers of the growing middle class. Eighty-two malls have been built near major cities including some very large ones. A supermarket that sells groceries is an ordinary anchor shop in the Russian mall.
Retail sales in Russia
Telecommunications
The Russian telecommunications industry is growing in size and maturity. As of December 2007, there were about 4.9 million broadband lines in Russia.
In 2006, there were more than 300 BWA network operators, covering 5% market share, with 30% dial-up accounting, and Broadband Fixed Access accounting for the remaining 65%. In December 2006, Tom Phillips, head of government and regulatory affairs officer of the GSM Association stated:
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- "Russia has reached more than 100% cellular penetration thanks to the popularity of massive wireless communications among Russians and good government jobs in pushing the market-driven mobile sector based on strong competition."
The financial crisis, which had hit the country by the end of 2008, led to a sharp drop in investment by the business sector and a significant reduction of the IT budget created by the government in 2008-2009. As a result, in 2009 the IT market in Russia declined by more than 20% in rubles and one-third in euros. Among certain segments, the largest share of the Russian IT market still belongs to the hardware.
Key data in telecom market in Russia
Transportation
Russian Railways accounts for 2.5% of Russia's GDP. The percentage of traffic for goods and passengers walking by train is unknown, as there are no statistics available for private transportation such as private cars or company trucks. In 2007, about 1.3 billion passengers and 1.3 billion tons of goods were shipped via Russian Railways. In 2007 the company owned 19,700 locomotives of goods and passengers, 24,200 passenger cars (wagons) (2007) and 526,900 freight cars (freight cars) (2007). 270,000 freight cars in Russia are privately owned. In 2009 Russia had 128,000 kilometers of common railway lines, of which about half were powered by electricity and carried most of the traffic; more than 40% is double track or better.
Construction
In 2009 the Russian construction industry survived the hardest year in more than a decade. The 0.8% decline recorded by industry for the first three quarters of 2010 looked very healthy compared to the 18.4% decline recorded a year earlier, and construction companies became much more optimistic about the future than in the previous month. The most successful construction companies concluded billions of dollars worth of contracts planned for employees to buy and buy new building machines. This decline serves to emphasize the importance of government for the construction market.
Insurance
According to the Central Bank of Russia 422 insurance companies operate in the Russian insurance market by the end of 2013. Insurance business concentration is significant across all major segments except the obligations of third party liability market (CMTPL), as the top 10 companies in 2013 charge 58.1% total premiums without compulsory health insurance (CHI). The Russian insurance market in 2013 shows a significant growth rate in operations. The total premiums charged (without CHI) in 2013 was RUB 904.9 bln (an increase of 11.8% compared to 2012), the total claim amount paid was RUB 420.8 bln (increased by 13.9% compared to 2012 ). The ratio of premium to GDP (total without CHI) in 2013 increased to 1.36% compared to 1.31 the previous year. The share of premiums in household expenditures increased to 1.39%. The level of claims paid on the total market without CHI is 46.5%, an inadequate increase compared to 2012. The number of policies in 2013 increased by 0.1% compared to 2012, to 139.6 million policies.
Although the relative indicators of the Russian insurance market returned to pre-crisis levels, progress was achieved primarily by increased life and accident insurance, the input of these two market segments in premium growth in 2013 largely exceeded their share in the market. As before, life insurance and accident insurance are often used by banks as an attachment to credit contracts that protect creditors from default risk in cases of death or disability of the borrower. The emergence of these lines is connected, obviously, with an increase in consumer lending, as the total number of population loan obligations in 2013 increased by 28% to RUB 9.9 trillion. At the same time, the premium to the net GDP ratio of life and accident insurance remained at the same rate of 1.1% as in 2012. Thus, if the "banking" business line is excluded, the Russian insurance market is in a stagnant stage for four years last. , as the premium to net GDP ratio of life and accident insurance remained at the same level of 1.1% since 2010.
Information technology
The IT market is one of the most dynamic sectors of the Russian economy. Russian software exports have increased from only $ 120 million in 2000 to $ 3.3 billion in 2010. Since 2000 the IT market has started a growth rate of 30-40% per year, grew by 54% in 2006 alone. The largest sector in terms of revenue is system and network integration, which accounts for 28.3% of total market revenues. Meanwhile, the fastest growing IT market segment is an offshore program.
Russia currently holds 3% of the offshore software development market and is the third country (after India and China) among software exporters. Growth such as software outsourcing in Russia is caused by a number of factors. One of them is the supporting role of the Russian Government. The government has launched a program promoting the development of IT-oriented technology park (Technoparks) - a special zone that has a well-established infrastructure and enjoys profitable taxes and customs regimes, in seven different places across the country: Moscow, Novosibirsk, Nizhny Novgorod, Kaluga, Tumen, Republic of Tatarstan and St. Peterburg. Another factor that stimulates the growth of the IT sector in Russia is the presence of global technology companies such as Intel, Google, Motorola, Sun Microsystems, Boeing, Nortel, Hewlett-Packard, SAP AG, and others, which have intensified their software development activities and opened up R & amp center D them in Russia.
Under a signed government decree In June 2013, a special "road map" is expected to facilitate the access of business suppliers to a state-owned infrastructure monopoly procurement program, including large ones such as Gazprom, Rosneft, Russia Railway, Rosatom and Transneft. These companies are expected to increase the proportion of domestic technology solutions they use in their operations. The Decree puts particular emphasis on purchasing innovative products and technologies. According to a new decision, by 2015, government-linked companies must double their purchases of Russian technological solutions compared to 2013 levels and their purchase rate should be four by 2018.
Russia is one of the few countries in the world with a home Internet search engine that has a relevant market share as Russia-based search engine Yandex is used by 53.8% of internet users in the country.
The well known Russian IT companies are ABBYY (FineReader OCR system and Lingvo dictionary), Kaspersky Lab (Kaspersky Anti-Virus, Kaspersky Internet Security), Mail.Ru (portal, search engine, mail service, Mail.ru Messenger agency, ICQ, Odnoklassniki social networks, online media resources).
External trade and investment
Trading
Russia recorded a trade surplus of USD 15.8 billion in 2013. The trade balance in Russia is reported by the Russian Central Bank. Historically, from 1997 to 2013, the average Russian trade balance of 8338.23 million USD reached an all-time high of 20,647 USD million in December 2011 and a record low of -185 million USD in February 1998. Russia runs a regular trade surplus mainly due to commodity exports.
In 2015, Russia's main exports were oil and natural gas (62.8% of total exports), ores and metals (5.9%), chemical products (5.8%), machinery and transportation equipment (5.4% ) and food (4.7%). Others include: agricultural raw materials (2.2%) and textiles (0.2%).
Russia imports food, land transportation, pharmaceuticals, textiles, and footwear. Major trading partners are: China (7% of total exports and 10% of imports), Germany (7% of exports and 8% of imports) and Italy. This page includes graphs with historical data for the Russian trade balance. Exports in Russia declined to 39038 million USD in January 2013 from 48568 million USD in December 2012. Exports in Russia are reported by the Central Bank of Russia. Historically, from 1994 to 2013, Russian exports averaged 18668.83 million USD reached an all-time high of 51338 USD million in December 2011 and a record low of 4087 million USD in January 1994. Russia is the 16th largest export economy in the world ( 2016) and is a major exporter of oil and natural gas. In Russia, service is the largest economic sector and accounts for 58% of GDP. In the most important segment services are: wholesale and retail trade, repair of motor vehicles, motorcycles and personal and household goods (17% of total GDP); public administration, health and education (12%); real estate (9%) and storage and transportation communications (7%). Industry accounts for 40% of total output. Mining (11% of GDP), manufacturing (13%) and construction (4%) are the most important industry segments. Agriculture accounts for the remaining 2%. This page includes graphs with historical data for Russian Exports. Imports in Russia declined to 21,296 million USD in January 2013 from 31436 million US dollars in December 2012. Imports in Russia are reported by the Central Bank of Russia. Historically, from 1994 to 2013, Russian imports an average of 11392.06 million USD reached an all-time high of 31553 USD million in October 2012 and a record low of 2691 million USD in January 1999. Russia's main imports are food (13% of total imports) and land transportation (12%). Others include: pharmaceuticals, textiles and footwear, plastics and optical instruments. Major import partners are China (10% of total imports) and Germany (8%). Others include: Italy, France, Japan and the United States. This page includes charts with historical data for Russian Import.
Russian foreign trade - Russian exports and imports
Foreign trade rose 34% to $ 151.5 billion in the first half of 2005, primarily due to rising oil and gas prices which now make up 64% of all exports by value. Trade with the CIS countries rose 13.2% to $ 23.3 billion. Trade with the EU formed 52.9%, with a CIS of 15.4%, the Eurasian Economic Community of 7.8% and the Asia-Pacific Economic Community 15.9%.
Maps
Regional development
Mergers and Acquisitions
Between 1985 and 2018 nearly 28,500 mergers or acquisitions have been announced in Russia. It accumulates to an overall value of about 984 bil. USD which translates to 5,456 bil. RUBBING. In terms of value, 2007 has been the most active year with 158 bil. USD, while the number of transactions peaked in 2010 by 3,684 (964 compared with 2007 record value). Since 2010 values ​​and numbers have decreased constantly and other waves of M & amp; A is expected.
The majority of transactions in, in or out of Russia have occurred in the financial sector (29%), followed by banks (8.6%), oil and gas (7.8%) and Metals and Mining (7.2%).
Here is a list of the best deals with participating Russian companies ranked based on transaction value in miles. USD:
The majority of the top 10 deals are in the Russian Oil and Gas sector, followed by Metals and Mining.
See also
References
- This article incorporates public domain material from the Library of Congress Country Studies website http://lcweb2.loc.gov/frd/cs/. - The Soviet Union
Further reading
- Filip Novokmet, Thomas Piketty, and Gabriel Zucman (July 2017). From Soviet to Oligarchy: Inequality and Property in Russia 1905-2016
External links
- Ministry of Finance of the Russian Federation
- Ministry of Economic Development (Russia)
- Summary of World Bank Trade Statistics of the Bank of Russia
- Russian Profile at CIA World Factbook
- Russian Profile at The World Bank
Source of the article : Wikipedia
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