Russia Economy Pestle Analysis

1. PESTLE ANALYSIS
1) Political factor
 On 12th Dec 1993 Russia officially became the federation of Russia and semi
presidential republic.
• The prime minister – Mr. Dmitry medvedev .(Head of Government)
• The president – Mr. Vladimir Putin. (Head of State)
 Russia will take charge of all the roles of the Soviet Union.
 Open foreign relationship strategy.
 Till 2009, Russia have diplomatic relationship with 191 country and 144
embassies.
 It is a good opportunity for trade and economic of the country.
 Biggest store of nuclear weapon with the military which includes Navy, ground
force and Air force.

2. 2) Economical factor
 GDP rank – 10th
 For Agricultural Russia is the 4th largest in the world and a perfect location
between Europe and Asia.
 Russia mainly depends on the natural resources (Oil and Gas).
 Too dependent on the price of crude oil.
 Russian economy grew 3.6 % in 2017.
 Russian economy is today consider by IMF and World bank Developing one.
 Russian economy is the 6th largest in the world by purchasing power parity .

3. 3) Social factor
 Russia is well known with literature, music, ballet dance, famous artist,
composers, sports .
 Russia is also popular for having philosopher such as Leo Tolstoy, Tchaikovsky,
Pushkin and Lenin.
 From 1993, with the change in the regime of politic, the society stepped forward.
 In Europe continent, Russia is one of the countries that being affected strongly by
HIV and Alcohol poisoning.
 Big improvement in living standard, help the country out of inflation and the
increase of unemployed rate.

4. 4) Technological factor
 Russia is a very rich in Science tradition.
 Russia is consider as an advance technology development country under –
Mathematics, Chemistry, Aerospace engineer, Earth science, Structural engineer.
 Russia was the 1st country who sent people in the space.
 Russia have more attention on the modernization and Advance technology such
as Rosnano and Nano technology.

5. 5) Legal factor
 In 2014 - corruption rate of Russia is staying at the rate of 2.1 .
• which is consider as one of the country which have very high corruption rate.
• For attracting more investment, the Government pass the law which make no
different between foreign investors and national investor.
• There is the need of changes to reduce the corruption as well as to be more open
to investors.