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Economic and political outline

Economic indicators | Foreign Trade in figures | Sources of general economic information | Political outline

Economic indicators

Due to the deterioration of the international economic situation, the GDP growth rate was negative in 2009. However, it will raise again in 2010 thanks to the hydrocarbon exports, and a strong domestic demand, especially due to the increase in salaries. The main threats to growth are linked to controlling inflation, which remains high and in the long term, to the drop in population.
Tax reductions have been planned for the next few years, in order to favor the diversification of the economy through investment while, regaining some balance. A stabilization fund has been set up to modernize infrastructures, the education and health systems, as well as agriculture.
Over the last few years, the unemployment rate dropped sharply, a trend that should continue. Disparities are still marked, particularly between big cities and rural areas. Despite the appearance in towns of a middle class, the poverty rate is still at 16%.

Main indicators	2006	2007	2008	2009	2010
GDP (billions USD)	989.43	1,294.38	1,676.59	1,163.65e	1,329.38e
GDP (constant prices, annual % change)	7.7	8.1	5.6e	-6.0e	0.5
GDP per capita (USD)	6,929	9,103	11,807	8,230e	9,471
Inflation rate (%)	9.7	9.0	14.1	12.9	9.9e
Unemployment rate (% of the labor force)	7.2	6.1	6.2	-	-
Current Account (billions USD)	94.34	76.24	102.33	5.99e	19.02e
Current Account (in % of GDP)	9.5	5.9	6.1	0.5	1.4e

Source: IMF - World Economic Outlook Database ; World Bank

Note: (e) Estimated data

Main sectors of industry

Russia has a wealth of natural resources. It is the leading producer of natural gas and the second producer of oil in the world, as well as being one of the main producers and exporters of diamonds, nickel and platinum.
Despite its surface area, Russia has a relatively small amount of land suitable for agriculture because of unfavorable climatic conditions. The northern regions of the country concentrate mainly on livestock and the southern regions as well as western Siberia produce cereals.
Russia inherited most of the Soviet Union's industrial bases. The most well developed sectors are chemicals, metallurgy, mechanical construction and defense sectors.
After the 1998 financial crises, the banking sector has not yet undergone a complete restructuring. Given the size of the country, the transport, communications and also trade sectors are particularly significant.

Breakdown of economic activity by sector	Agriculture	Industry	Services
Employment by sector (in % of total employment)	10.2	29.8	60.0
Value added (in % of GDP)	4.8	38.5	56.8
Value added (annual % change)	3.1	6.1	9.5

- last available data.

Monetary indicators	2004	2005	2006	2007	2008
Russian Rouble (RUB) - Average annual exchange rate for 1 USD	28.81	28.28	27.19	25.58	24.85

Source: World Bank - World Development Indicators

Indicator of economic freedom

Score:: 50.8/100
Position:: mostly unfree
World Rank:: 146 out of 179
Regional Rank:: 41 out of 44

Distribution of Economic freedom in the world
Source: 2008 Index of Economic freedom, Heritage Foundation

Country risk

See the country risk analysis provided by Ducroire.

Foreign trade in figures

The country is fairly open to foreign trade despite the 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. The country shows a high trade surplus and this should continue regardless of the drop in raw material prices and the deterioration of the global economic situation.

Foreign trade indicators	2003	2004	2005	2006	2007
Imports of goods (millions USD)	76,070	97,382	125,434	164,281	223,486
Exports of goods (millions USD)	135,929	183,207	243,798	303,550	354,401
Imports of services (millions USD)	27,122	33,287	38,865	44,839	59,187
Exports of services (millions USD)	16,229	20,595	24,970	31,102	39,416
Imports of goods and services (annual % change)	17.7	23.3	16.6	21.9	27.3
Exports of goods and services (annual % change)	12.5	11.8	6.5	7.3	6.4
Imports of goods and services (in % of GDP)	23.8	22.1	21.5	21.0	21.8
Exports of goods and services (in % of GDP)	35.2	34.4	35.2	33.8	30.5
Trade Balance (millions USD)	59,860	85,825	118,364	139,269	130,915
Trade Balance (including service) (millions USD)	48,966	73,133	104,470	125,533	111,144
Foreign trade (in % of GDP)	59.0	56.5	56.7	54.8	52.3

Source: World Bank

Main partner countries

Main customers (% of exports)	2008
Netherlands	12.2%
Italy	9.0%
Germany	7.1%
Turkey	5.9%
Belarus	5.1%
Ukraine	5.0%
China	4.5%
Poland	4.3%
Finland	3.4%
United Kingdom	3.2%
United States	2.9%
Kazakhstan	2.8%
France	2.6%
Japan	2.2%
Switzerland	2.2%
Hungary	2.0%
Latvia	1.7%
South Korea	1.7%
Czech Republic	1.5%
Slovakia	1.4%
See more countries	60.8%

Main suppliers (% of imports)	2008
China	13.0%
Germany	12.8%
Japan	7.0%
Ukraine	6.1%
United States	5.2%
Italy	4.1%
Belarus	4.0%
South Korea	3.9%
France	3.8%
United Kingdom	2.9%
Poland	2.6%
Finland	2.5%
Kazakhstan	2.4%
Turkey	2.3%
Netherlands	1.8%
Brazil	1.7%
Sweden	1.7%
Spain	1.6%
Belgium	1.5%
Hungary	1.4%
See more countries	56.0%

Source: Comtrade

Main products

Main exports (% of exports)	2008
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	65.7%
Iron and steelIron and steel	6.1%
FertilizersFertilizers	2.5%
Aluminium and articles thereofAluminium and articles thereof	1.8%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	1.7%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	1.5%
Nickel and articles thereofNickel and articles thereof	1.1%
Copper and articles thereofCopper and articles thereof	0.9%
Organic chemicalsOrganic chemicals	0.8%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	0.8%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	0.7%
CerealsCereals	0.7%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	0.7%
Articles of iron or steelArticles of iron or steel	0.7%
Rubber and articles thereofRubber and articles thereof	0.6%
Ores, slag and ashOres, slag and ash	0.5%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	0.5%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	0.4%
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	0.3%
Plastics and articles thereofPlastics and articles thereof	0.3%
Ships, boats and floating structuresShips, boats and floating structures	0.3%
Other base metals; cermets; articles thereofOther base metals; cermets; articles thereof	0.3%
Pulp of wood or of other fibrous cellulosic...Pulp of wood or of other fibrous cellulosic material; recovered (waste and scrap) paper or paperboard	0.3%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	0.3%
Railway or tramway locomotives, rolling-stock and...Railway or tramway locomotives, rolling-stock and parts thereof; railway or tramway track fixtures and fittings and parts thereof; mechanical (including electro-mechanical) traffic signalling equipment of all kinds	0.2%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	0.2%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.1%
Fish and crustaceans, molluscs and other aquatic...Fish and crustaceans, molluscs and other aquatic invertebrates	0.1%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	0.1%
See more products	22.2%

Main imports (% of imports)	2008
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	18.0%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	17.5%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	10.2%
Pharmaceutical productsPharmaceutical products	3.4%
Plastics and articles thereofPlastics and articles thereof	3.2%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	3.0%
Meat and edible meat offalMeat and edible meat offal	2.7%
Iron and steelIron and steel	2.4%
Articles of iron or steelArticles of iron or steel	2.3%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	1.7%
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	1.5%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	1.5%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	1.2%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	1.1%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	1.1%
Footwear, gaiters and the like; parts of such...Footwear, gaiters and the like; parts of such articles	1.1%
Beverages, spirits and vinegarBeverages, spirits and vinegar	1.0%
Rubber and articles thereofRubber and articles thereof	1.0%
Railway or tramway locomotives, rolling-stock and...Railway or tramway locomotives, rolling-stock and parts thereof; railway or tramway track fixtures and fittings and parts thereof; mechanical (including electro-mechanical) traffic signalling equipment of all kinds	0.9%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	0.9%
Ores, slag and ashOres, slag and ash	0.9%
Miscellaneous chemical productsMiscellaneous chemical products	0.8%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.8%
Fish and crustaceans, molluscs and other aquatic...Fish and crustaceans, molluscs and other aquatic invertebrates	0.8%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	0.7%
Ships, boats and floating structuresShips, boats and floating structures	0.7%
Edible vegetables and certain roots and tubersEdible vegetables and certain roots and tubers	0.7%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	0.7%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	0.6%
Organic chemicalsOrganic chemicals	0.6%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	0.6%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	0.5%
Miscellaneous articles of base metalMiscellaneous articles of base metal	0.5%
Miscellaneous edible preparationsMiscellaneous edible preparations	0.5%
Aluminium and articles thereofAluminium and articles thereof	0.5%
Toys, games and sports requisites; parts and...Toys, games and sports requisites; parts and accessories thereof	0.5%
Sugars and sugar confectionerySugars and sugar confectionery	0.5%
Tobacco and manufactured tobacco substitutesTobacco and manufactured tobacco substitutes	0.4%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	0.4%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.4%
Residues and waste from the food industries;...Residues and waste from the food industries; prepared animal fodder	0.4%
Cocoa and cocoa preparationsCocoa and cocoa preparations	0.4%
Glass and glasswareGlass and glassware	0.4%
Tools, implements, cutlery, spoons and forks, of...Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal	0.4%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	0.4%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	0.4%
Ceramic productsCeramic products	0.4%
Oil seeds and oleaginous fruits; miscellaneous...Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder	0.3%
Coffee, tea, maté and spicesCoffee, tea, maté and spices	0.3%
Live trees and other plants; bulbs, roots and the...Live trees and other plants; bulbs, roots and the like; cut flowers and ornamental foliage	0.3%
Other made-up textile articles; sets; worn...Other made-up textile articles; sets; worn clothing and worn textile articles; rags	0.3%
Articles of leather; saddlery and harness; travel...Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silkworm gut)	0.3%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	0.2%
Copper and articles thereofCopper and articles thereof	0.2%
CottonCotton	0.2%
CerealsCereals	0.2%
Live animalsLive animals	0.2%
Albuminoidal substances; modified starches; glues;...Albuminoidal substances; modified starches; glues; enzymes	0.2%
Man-made staple fibresMan-made staple fibres	0.2%
Wadding, felt and nonwovens; special yarns; twine,...Wadding, felt and nonwovens; special yarns; twine, cordage, ropes and cables and articles thereof	0.2%
Miscellaneous manufactured articlesMiscellaneous manufactured articles	0.1%
Preparations of meat, of fish or of crustaceans,...Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates	0.1%
Knitted or crocheted fabricsKnitted or crocheted fabrics	0.1%
Man-made filamentsMan-made filaments	0.1%
Impregnated, coated, covered or laminated textile...Impregnated, coated, covered or laminated textile fabrics; textile articles of a kind suitable for industrial use	0.1%
Clocks and watches and parts thereofClocks and watches and parts thereof	0.1%
See more products	47.7%

Source: Comtrade

See more products: More imports (Intracen Data)
More exports (Intracen Data)

Sources of general economic information

Ministries: Gouvernement Russe
Ministère de l'Agriculture
Ministère du Développement économique et du Commerce
Ministère des Affaires étrangères
Ministère des Finances
Statistical Office: Goskomstat
Central Bank: Russian Central Bank
Stock Exchange: Russian Trading System
Moscow Interbank Currency Exchange
Search Engines: Russia on the Net
Atrus
Radio Free Liberty
Rambler
Russia.com
Spravki.net
Tela
Yandex
Economic portals

Political outline

Executive Power: The President is the Head of State. He is elected by universal suffrage for four years.The real center of power in the country, he is the commander-in-chief of the army. The Prime Minister is the head of the government. He is appointed by the President, with the approval of the lower house of Parliament, and manages the everyday business of the country.
Legislative Power: Russia has a two-chamber legislative power. The Parliament, called the Federal Assembly, is composed of: the Council of the Federation (upper chamber), which has 78 seats and the members are appointed by the regional governors and legislative institutions, for a four-year term of office; and the State Douma (lower chamber), which has 450 seats; its members are elected by direct universal suffrage from partisan lists, for a four-year term.
Main political parties: Russia is a State with one dominant party - United Russia (a centrist party) which is in power. Opposition parties are authorized but they do not really have any chance of gaining power. The other important parties in the country are:
- The CPRF (Communist Party of the Russian Federation) – a nationalist and communist party;
A Just Russia (born of the merger between Rodina, the Russian Life party and the Russian Pensioners' party in 2006) - a center-left party, an ally of United Russia;
The LDPR (Liberal Democratic Party of Russia) - an extreme right nationalist political party;
- The SPS (Union of right-wing forces) - associated with reforms leading towards the free market economy and privatization, it supports western-style capitalism.
Current political leaders: President: Dmitri MEDVEDEV (elected on May 2008) – Independent
Prime Minister: Vladimir PUTIN (since May 2008) – Last president. United Russia Party President.
Next election dates: Presidential election: March 2012
Parliamentary: December 2011

Indicator of freedom of the press

World Rank:: 141/173
Evolution:: 3 places up compared to 2007

Source: Worldwide Press Freedom Index 2007, Reporters Without Borders

Indicator of political freedom

Ranking:: Not Free
Political freedom:: 6/7
Civil liberties:: 5/7

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