NPR News: Obama took credit for a decline in the value of the Russian currency — sanctions have proved devastating to the Russian economy.


Russia oil and gas = 16% OF RUSSIAN ECONOMY

RUSSIA unemployment at 5%

Russia GDP

Russia investments = aviation, shipbuilding, manufacturing and technology.

Economy of Russia = GDP $2.118 trillion — Rank 8th
Economy of Russia = 6th largest in the world by PPP.

Agriculture 4.4%
Industry 37.6%
Services: 58%

Oil and gas
Processed metals
Defense equipment
Communications equipment
Electric power generating and transmitting equipment
Consumer durables
Food and beverages
Real estate

Exports = $542.5 billion = petroleum and petroleum products, natural gas, metals, wood and wood products, chemicals, and a wide variety of civilian and military manufactures

Netherlands 14.6%
People’s Republic of China 6.8%
Germany 6.8%
Italy 6.2%
Turkey 5.2%
Ukraine 5.2%
Belarus 4.7% (2012 est.)[15]

Imports = $358.1 billion = consumer goods, machinery, vehicles, pharmaceutical products, plastic, semi-finished metal products, meat, fruits and nuts, optical and medical instruments, iron, steel

People’s Republic of China 16.6%
Germany 12.2%
Ukraine 5.7%
Japan 5%
United States 4.9%
France 4.4%
Italy 4.3% (2012 est.)[17]

Economy of Russia = High-income mixed economy with state ownership in strategic areas of the economy.

Russia relies on energy revenues to drive growth.
Russia has an abundance of natural resources, including oil, natural gas and precious metals, which make up a major share of Russia’s exports.

Russian oil and gas sector = 16% of GDP = 52% of federal budget revenues

Russian oil and gas sector = 70+% of total exports.

Russia = Large and sophisticated arms industry, capable of designing and manufacturing high-tech military equipment, including a fifth-generation fighter jet.

Russian arms exports = $15.7 billion — second only to the US = Combat aircraft, air defence systems, ships, submarines.

2000 and 2012, Russia’s energy exports fuelled a rapid growth in living standards, with real disposable income rising by 160%. = Sevenfold increase in disposable incomes since 2000.

110 wealthiest individuals own 35% of all financial assets = “billionaire capital of the world”

Russia = 2th largest victim of illegal money outflows = $880 Billion (2002-2011)

Following the collapse of the Soviet Union, Russia had undergone a radical transformation = Corrupt and haphazard privatization process turned over major state-owned firms to politically connected “oligarchs” = Equity ownership highly concentrated. = “shock therapy” = Recommendations of IMF + Larry Summers = Result was disastrous as real GDP fell by more than 40% by 1999 + Hyperinflation wiped out personal savings + crime + destitution spreading rapidly. = Majority of state enterprises were privatized to be owned by insiders for far less than they were worth. = ANOHER LARRY SUMMERS FAILURE! Many of the NEW rich promptly invested their newfound wealth abroad producing an enormous capital flight. = Collecting government revenues was a Disaster.

Oil prices in the 2000s Russia bounced back from the August 1998 financial crash with surprising speed. Much of the reason for the recovery was devaluation of the ruble, which made domestic producers more competitive nationally and internationally.

Russian leaders repeatedly try to diversify the economy away from its dependence on oil and gas and foster a high-technology sector.

The Russian Central Bank has free floated the Russian Ruble and has been widening the currency’s trading band and expects the ruble to be fully free floating in 2015.

Along with a rapid devaluation of the Ruble inflation in Russia has greatly increased. In 2012 Inflation was at one of its lowest points since the fall of the Soviet Union at 3.6%, in October 2014 the rate of inflation was reported to be 8%, although this is well below the 2333.30% inflation rate experienced in 1992.

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 largest exporter of oil in the world in absolute numbers.[citation needed]

Per capita oil production in Russia, though, is not that high. As of 2007, Russia was producing 69.603 bbl/day per 1,000 people, much less than Canada (102.575 bbl/day), Saudi Arabia (371.363 bbl/day), or Norway (554.244 bbl/day), but more than two times the USA (28.083 bbl/day) or the UK (27.807 bbl/day).[73]

Russia is leading producer and exporter of minerals and gold.

Russia is the largest diamond-producing nation in the world = 33+ million carats in 2013

Agriculture in Russia = Agriculture shows signs of improvement due to technological modernization = livestock + grain + Private farms and garden plots of individuals account for over one-half of all agricultural production.

Industrial Production decreased 2.10% in 2013

Russia is one of the most industrialized of the former Soviet republics.

Defense industry of Russia = Employs 2.5 – 3 million people = 20% of all manufacturing jobs = Second largest conventional arms exporter = Sukhoi and MiG fighters + air defense systems + helicopters + battle tanks + armored personnel carriers + infantry fighting vehicles.

Aircraft manufacturing = Employs 355,300 people = Competitive aircraft = MiG-29 and Su-30 + new Sukhoi Superjet 100

Space industry = Employs 250,000 people =

Automotive industry in Russia = Employs 600,000 people = 15th largest car producer in 2010

2013, Russians spent 60% of their pre-tax income shopping, the highest percentage in Europe. This is possible because many Russians pay no rent or house payments, owning their own home after privatization of state-owned Soviet housing.

A significant drawback for investment is the banking sector, which lacks the resources, the capability, and the trust of the population that it would need to attract substantial savings and direct it toward productive investments. Money on deposit with Russian banks represents only 7% of GDP.

Russia = 100% mobile penetration thanks to the huge popularity of wireless communications among Russians and the government’s good work in fostering a market driven mobile sector based on strong competition.

Information technology = Russia has more academic graduates than any other country in Europe. World leader in percentage of population with associate’s degree or higher: 54%, compared to 31% in UK. = IT market is one of the most dynamic sectors of the Russian economy. Russian software exports have risen from just $120 million in 2000 to $3.3 billion in 2010. = IT market growth rates of 30–40% a year, growing by 54% in 2006 alone. The fastest growing segment of the IT market is offshore programming. Currently Russia controls 3% of the offshore software development market and is the third leading country (after India and China) among software exporters.

Russia national search engine (Yandex, uses 53.8% of users + its own email service, service of electronic maps with panoramas, music service, electronic payment system, the app store for Android, cloud storage Yandex Disk and other services).

Russia is China’s eighth largest trade partner and China is now Russia’s fourth largest trade partner. China now has over 750 investment projects in Russia, involving $1.05 billion. Chinese imports from Russia are mainly those of energy sources, such as crude oil, which is mostly transported by rail, and electricity exports from neighboring Siberian and Far Eastern regions. Exports of both of these commodities are increasing, as Russia opened the Eastern Siberia–Pacific Ocean oil pipeline’s branch to China, and Russian power companies are building some of its hydropower stations with a view of future exports to China. Russia still exports more to China by $21.23 Billion in comparison to an import of $17.52 Billions.


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