RUSSIA'S ECONOMY

Russian Federation ranks 5th in the world in terms of gross domestic product (GDP) and purchasing power parity (PPP), according to the World Bank. Russia's nominal GDP in 2014 was $ 1.9 trillion US dollars.

Russian economy structure is the following:

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The dynamics of GDP shows continuous trend of growth from 1998 to 2014. Experienced investors understand this and continue to consider Russia as an attractive state for investment, despite some temporary economic difficulties.

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Trade

The field of wholesale and retail trade in Russia shows steady growth since 2010. Online trading, the volume of which in 2014 amounted to 713 billion rubles, is a trade growth driver, its annual growth — 31%.

The sale of semi-finished products and raw materials occupies about 40% of the volume of the wholesale market, 20% occupies food, 15% — non-food consumer goods.

About 30% of sales go to Moscow and the Moscow region.

Manufacturing

Manufacturing industry occupies almost the leading position among other branches of the Russian economy.

Machinery construction, oil refining, metallurgy, food and beverage, chemical industry are leading by the volume of manufactured products.

Mining

Mining is also among the key sectors of the Russian economy. It’s divided into three main sectors: mining of fuel and energy commodities, metals and minerals. Mostly mining industry of Russia is concentrated on a small number of large fields. At the same time, Russia still has huge amount of undeveloped fields with reserves of mineral deposits suitable for industrial development.

Energy

Russia is among the world's largest producers of electricity. This sector is dominated by large companies, including three foreign investors: the German concern E. On, the Italian Enel and the Finnish company Fortum.

Russian power complex consists of 600 power plants, each of which has a capacity of more than 5 MW. The total capacity of all power plants of Russia is approximately 218 gigawatts. The bulk of production comes from thermal power plants (TPP) - 68.4%, the share of hydroelectric power plants (HPP) accounting to 20.3%, nuclear power plants (NPP) — 11,1%.

Transport

The transport system of Russia is one of the longest in the world and includes 86 thousand kilometers of railways, 1396 thousand kilometers of roads, 250 thousand kilometers of trunk pipelines, 102 thousand kilometers of navigable inland waterways. For the transporting of goods are mainly used: automotive transport (5.4 billion tons), rail transport (1.2 billion tons) and pipeline (1.1 billion tons) .

The most promising projects in the transport sector are considered to be: the construction of the Moscow Central ring road – where the Mubadala Fund from the UAE, a Spanish Holding Sacyr Concessiones S. L. and Hungarian company Intertoll stated to participate; and the construction of Moscow–Kazan highway over 800 miles length, that enlisted the support of Chinese investors.

Telecommunications

The development of telecommunication technologies is one of the strategic directions of modernization of the Russian economy. The third generation cellular networks are deployed in all major Russian cities, where 75 percent of the population.

The development of the Russian telecommunications market comes in line with global trends. High-speed connection technology and Internet access are rapidly developing; availability and use of modern information and digital services are growing; demand on high-quality informational, educational and entertainment content highly increased.

Construction

Construction is growing in Russia at high rates. By the end of 2014 in Russia, the volumes of housing construction exceeded the record of 1987 (72.8 million square meters) and amounted to 83 million square meters. However, the need for housing in Russia is so great that, according to the government, it is necessary to increase volumes of building of up to 120 million square meters per year.

Foreign construction companies are successfully operating in Russia, for example, Strabag (Austria), Hochtief (Germany), Vinci, Bouygues, Technip (France), ENKA, Renaissance Construction, Ant yapi (Turkey). In particular, according to the Turkish Embassy in Russia, the volume of construction contracts of Turkish companies in 2014 has reached 50 billion US dollars.

Financial activities

As of 01.07.2015 there are 797 commercial banks in Russia. Among the largest Russian banks are subsidiaries of foreign banks such as Citibank (USA), Nordea Bank (Sweden), Raiffeisenbank (Austria), Societe Generale (France), UniCredit (Italy).

Agriculture, hunting and forestry

Russian agriculture is successfully developing with government support. Russia has a vast agricultural areas, located in different climatic zones, it has 10% of all arable land in the world. The central and southern part of the country is favorable for growing a wide range of agricultural crops. In 2014 108,6 million tons of grain was gathered in Russia. Environmental conditions of Russia contribute to the development of a number of exclusive agricultural productions: bee-keeping, harvesting of natural berries, herbs and mushrooms. For the same reason Russia is known worldwide as a producer and exporter of caviar and rare fish species.

Tourism

As the costs of international tourism Russia occupies a leading position in the world, along with China, the US and Germany, according to the world tourism organization United Nations — United Nations World Tourism Organization (UNWTO). The Russia's revenues from international tourism in 2013 was 11.9 billion. Tourists are attracted by the low cost of services, the natural diversity and rich culture of Russia — there situated 26 UNESCO world heritage sites.