Russia country report

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Russia has a wealth of natural resources.
Russia is the leading producer of natural gas, and exporters of diamonds, nickel and platinum and the second producer of oil in the world.
Russia has a relatively small amount of land suitable for agriculture because of unfavorable climatic conditions.
Russia owns 10% of the global agricultural lands.
The northern regions of the country concentrate mainly on livestock and the southern regions as well as western Siberia produce cereals. 

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Russia country report

  1. 1. Main Industry SectorsEconomic OverviewForeign Direct Investment [FDI]FDI Government MeasuresCountry Strong PointsCountry Weak PointsForeign Trade Overview
  2. 2. Russia has a wealth of natural resources. Russia is the leading producer of natural gas, and exporters of diamonds, nickel andplatinum and the second producer of oil in the world. Russia has a relatively small amount of land suitable for agriculture because ofunfavorable climatic conditions. Russia owns 10% of the global agricultural lands. The northern regions of the country concentrate mainly on livestock and the southernregions as well as western Siberia produce cereals.
  3. 3. Industry represents more than a third of Russias GDP and employs up to 30% of thepopulation. Russia inherited most of the Soviet Unions industrial bases. The most well developed sectors are chemicals, metallurgy, mechanical construction anddefense sectors. The service sector employs more than 60% of the population and generates slightlyunder 60% of the GDP. After the 1998 financial crises, the banking sector has not yet undergone a completerestructuring. Russia’s transport, communications and also trade sectors are particularly significant.
  4. 4. Russia was hit hard by the international financial crisis and in 2009 reached a record recession since thefall of the Soviet block (-7.9%). The recovery in 2010 was strong (4% growth according to estimates), driven by fuel exports and domesticdemand stimulated by the increase in salaries. Growth should continue to strengthen in 2011-2012. Economic recovery justifies the end of exceptional measures to combat the crisis. Russia’s priority, announced as part of a Five Year Plan, is to support the agricultural sector in order toachieve food self-sufficiency. In order to free itself of its dependency on hydrocarbons, a change of the economic model isimperative. Tax reductions have been planned for the next few years, in order to favor the diversification ofthe economy through investment while, regaining some balance.
  5. 5. A stabilization fund has been set up to modernize infrastructures, education, health systems, andagriculture. Cuts in public spending and a strengthening of the supervision of the banking system are also planned. The main threats to growth are linked to controlling inflation, which remains high and in the long term, tothe drop in population. The unemployment rate, is estimated at 7.5% for 2010. Disparities are still marked, particularly betweenbig cities and rural areas. Despite the appearance in towns of a middle class, the poverty rate is still at 16%.
  6. 6. FDI flow increased considerably at the beginning of the millennium years (tripled between 2002and 2007), its level (1.5% of the GDP) remains relatively low in terms of growth of the country andof the Russian economys potential. The low FDI performance reflects an investment climate which is still widely perceived asunfavorable abroad. Russia has implemented positive economic reforms, the states administrative problems andthe uncertainties of the rule of law remain significant.
  7. 7. Russian establishment of investment assistance is still in its infancy, despite manydeclarations of intent. Russia prefers to improve the general investment climate by tax reductions and economicreforms. Since May 2008, majority foreign ownership is subject to authorization in many sectors,particularly those linked to raw materials, heavy industry and aerospace.
  8. 8. Significant natural resources, investment potential largely under-utilized and a qualifiedworkforce.
  9. 9. Russian’s unstable investment climate, complicated and sometimes contradictory accountingregulations and legislations, infringement of intellectual property, many sectors closed to foreigninvestment as considered strategic.
  10. 10. Russia is fairly open to foreign trade (which represents around 50% of the GDP) despitethe nationalistic attitude of its leaders and strict legislation and fare policies. Russia is amongst the 10 primary exporters and the 20 primary importers in the world. Russian main trade partners are China, Germany, The Netherlands and the United States. Russia shows a high trade surplus and this should continue regardless of the drop in rawmaterial prices and the deterioration of the global economic situation.
  11. 11. Visit us to download for related reportsMarket Opportunities of products and Services in RussiaExport and investment sector opportunities in RussiaOverview of Trade Regulations, Customs and Standards in RussiaRussian Investment guide for beginnersBusiness and Project Financing in RussiaBusiness Travel Advisory in Russia
  12. 12.  China  Australia Mexico  Germany United States  France India  Spain Canada  South Korea Russia  Vietnam Hong Kong  Saudi Arabia Colombia  Poland Brazil  South Africa Turkey  Nigeria Indonesia  Argentina Egypt  UAE Singapore  Netherland United Kingdom  Sweden Italy  Thailand Japan  Israel and more…. Buy 2 reports get 1 report FREE
  13. 13. International Market Research Report on 300+ topics over 100 countries Instant online Delivery Need additional reports ? Market Share Distribution and business practices Market Size Statistical data Market Trends End user analysis Market access Import and Export strategies information Market Analysis Competitions Domestic production Best sales prospects Tariffs and Trade shows and regulations contact points
  14. 14. Thanking for downloading For more information visit uswww.worldresearchreport.com Or Email usworldresearchreport@gmail.com

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