About Russia

Russia possesses ample supplies of many of the world's most valued natural resources, especially those required to support a modern industrialized economy. It also has a well-educated labor force with substantial technical expertise.

The core of the Russian economy at the moment is electric energy, oil and gas sectors, as well as steel and non-ferrous metals. Together with other natural resources such as timber, fish and some others these sectors contribute the most to Russian exports as well as to the state revenue. Nevertheless, other industries are developed as well; however, they still need to overcome the negative consequences of the 1990s transformation from planned to market economy. Initially Russia processing and consumer-related industries were less competitive and have been loosing the market share of Western and East Asian imports. However at the moment, due to favorable economic conditions and development of the private sector, some companies in mechanical engineering, food industry, light industry, chemicals and other sectors show superior growth.

Russia posted gross domestic product growth of 6.4% in 1999, 10% in 2000, 5.1% in 2001, 4.7% in 2002, 7.3% in 2003, 7.2% in 2004, 6.4% in 2005 with industrial sector posting high growth figures as well. Russia became the fastest growing economy in the G8. It grew 6.7% in 2006.

Economic indicators

2006

•  The Volume of GDP in 2006 has made 26621 billion roubles or $979,1 billion at the average rate for the year (previous year - $763,2 billion), that in real terms is 6,7% more.

•  The Tax revenues listed by Federal Tax Service to the federal budget in 2006 have made 3000,7 billion rbl. (growth has made 19,7 % in comparison with 2005).

•  The Russian gold and exchange currency reserve has established the next record - artificially of January, 5th 2007 gold and exchange currency reserves of the central bank made 303.9 billion dollars. It has provided Russia the third place on this parameter in the world after China and Japan .

•  According to federal the law dated 01.12.2006 197-FZ, parameters of the federal budget for 2006 have been finally approved by the following figures: charges by the sum of 4 431 076 807,1 thousand roubles, incomes by the sum of 6 170 484 600,0 thousand roubles. Thus, proficiency of the federal budget for 2006 comprises 1 739 407 792,9 thousand roubles.

•  Official inflation 9 %.

Ratings

•  In a rating of World Bank Knowledge Economy Index which shows the level the countries have succeeded in use of inventions of scientists and engineers in practice, Russia borrows 41 place out of 128.

•  Last years the investment rating of Russia grows, appropriated by international recognized agencies Moody's, Fitch and Standard&Poors, which testifies the increase of investment appeal of the country. In particular, only Russia and Kazakhstan have Moody's investment rating among all CIS countries.