Russian economy: agriculture, industry, energy, banking, transport customs

Course summary Russian economy:

Russian Energy Sector. Foreign Trade of Russia. Customs. International Relations of the Russian Federation. Automotive industry

Russia is the largest country in the world with a consumer market of over 140 million people,vast natural resources, a highly educated workforce, and technologically advanced research and production capabilities. It covers a vast amount of topographically varied territory, including much that is inaccessible by conventional modes of transportation. Russia is one of the world's richest countries in raw materials, many of which are significant inputs for an industrial economy.

Russia accounts for around 20 percent of the world's production of oil and natural gas and possesses large reserves of both fuels. Natural gas production in Russia in 2010 is expected to grow 10.7% year-on-year to 646 billion cubic meters, according to a government. It said gas exports should grow 22.1% to 205.7 bcm.

Russia is a link between Europe and Asia; and also borders the North American continent. The Russian Federation boasts one of the most dynamically developing and attractive economies in the world. Russia is a BRIC country. Russia is one of the international community's key players ...

The performance of the Russian economy since the 1998 crisis has been impressive. The economy had averaged 7% growth since the 1998 Russian financial crisis, resulting in a doubling of real disposable incomes and the emergence of a middle class. The Russian economy, however, was one of the hardest hit by the 2008-09 global economic crisis as oil prices plummeted and the foreign credits that Russian banks and firms relied on dried up. High oil prices buoyed Russian growth in the first quarter of 2011 and could help Russia reduce the budget deficit inherited from the lean years of 2008-09.

Russian main Exports partners: Netherlands 10.62%, Italy 6.46%, Germany 6.24%, China 5.69%, Turkey 4.3%, Ukraine 4.01% (2009). The foreign trade balance had a surplus of $125.6 billion (2010).

Example of the course Russian economy:

The transportation system during the Soviet period was organized in the form of vertically integrated monopolies controlled by the central government. Thus, for example, the same administrative agency owned and operated the airports, airlines, and enterprises that manufactured aircraft.

Privatization in Russia has prompted profound changes in the socioeconomic life of the country, including fundamental shifts in society, capital, and political power. The outcomes of privatization efforts will in many respects determine socioeconomic and political conditions in Russia not only during the contemporary transitional period but also far into the future.

Economists have predicted several worst-case scenarios for Russia. A drop in oil prices coupled with a strengthening ruble could lead to a banking crisis as the flow of currencies reverses. In other variant, Russia could catch "Dutch disease:" high export prices strengthen the currency, encouraging imports and collapsing local industry.

Foreign companies (FDI), which are planning to do business in Russia, will have to study Russian mentality. They have to take into consideration the Russian character, learn To understand the Russian people and build upon it. Overall, the best way to do business in Russia is to understand, and accept, that things happen differently. Therefore you have to adapt and evolve your own mindset accordingly in order to fully exploit the market. The benefits of understanding Russian business etiquette cannot be underestimated.

 

Russia is the internationally recognized legal successor to the Soviet Union, including its membership in the UN as one of the five permanent members of the Security Council. Russia plays a crucial role in maintaining global peace and security. Development of bilateral and multilateral cooperation with the CIS Member States constitutes a priority area of Russia's foreign policy. Russia is also a member of the Group of Eight, comprising the world's most industrialized nations, as well as a member of a significant number of other international organizations including the Council of Europe and the OSCE.

Russia plays a key role in organizations which were established after the breakup of the Soviet Union: the CIS, EurAsEC, CSTO, and SCO. 

Russia has signed a protocol with the European Union on its terms for entry into the World Trade Organization. The European Union (EU) support removes a major obstacle to Moscow's ambition of becoming A member of the trading bloc.

Black Sea Synergy (EU)

A decade after the implosion of the Soviet Union in December 1991, Russia is still struggling to establish a modern market economy and achieve strong economic growth. In contrast to its trading partners in Central Europe - which were able to overcome the initial production declines that accompanied the launch of market reforms within three to five years - Russia saw its economy contracts for five years, as the executive and legislature dithered over the implementation of many of the basic foundations of a market economy. Russia achieved a slight recovery in 1997, but the government's stubborn budget deficits and the country's poor business climate made it vulnerable when the global financial crisis swept through in 1998. The crisis culminated in the August depreciation of the ruble, a debt default by the government, and a sharp deterioration in living standards for most of the population.

The economy subsequently has rebounded, growing by an average of more than 6% annually in 1999-2001 on the back of higher oil prices and the 60% depreciation of the ruble in 1998. The ruble's real appreciation back to its 1998 level is making Russian goods exports less competitive both domestically and abroad. Economic growth fell to 4% during 2002. These GDP numbers, along with a renewed government effort to advance lagging structural reforms, have raised business and investor confidence over Russia's prospects in its second decade of transition.

 

GAZ Group is one of the largest Russian automobile companies. GAZ Group was established in 2005 through restructuring of the manufacturing assets of OAO RusPromAuto that had been in existence since 2001. GAZ Group comprises OAO GAZ, 18 automotive plants in Russia, distribution and service companies. The headquarters of GAZ Group is located in Nizhny Novgorod. 

Russia has proven oil reserves of 60 billion barrels, most of which are located in Western Siberia, between the Ural Mountains and the Central Siberian Plateau. Russia holds the world's largest natural gas reserves, with 1,680 trillion cubic feet (Tcf)--more than twice the reserves in the next largest country, Iran.

With 173 billion short tons in estimated recoverable coal reserves, Russia holds the world's second largest coal reserves, behind only the United States which holds roughly 274 billion short tons. Russia's power sector includes over 440 thermal and hydropower plants (approximately 77 of which are coal-fired) plus 30 nuclear reactors.

The Customs Union between Russia, Kazakhstan and Belarus came into existence on January 1, 2010. The three states are to go on with economic integration and are set to remove all customs borders between Belarus, Kazakhstan and Russia since July 1, 2011. (See also: The Union State (Russia and Belarus)

Russian Companies Shanghai Cooperation Organization - ASEAN Russia Business Forum - Economic and Social Commission for Asia and the Pacific (ESCAP). Free Trade Agreement with Serbia

 ASEAN-Russia Business Forum:

EENI Site in Russian Language Мастер в Международном Бизнесе Импорт и Экспорт

Russian, Economy, Agriculture, industry, Energy, Banking, transport, Customs, Russia, largest country, world, richest countries, raw materials, 20% oil, gas production, Modernization, productivity, Master, international business