Russian is the world’s largest country. It has a population of more than 146.2 million, making it the most populous country in Europe. Russia has around eleven time zones and has maximum borders with other countries.
Russian Economy
Russia has become a roaring member of the world’s economy. The foreign companies always support these industries and cooperate for further prosperity. There are Russian clients all over the world, particularly in Europe, Asia, and North America.
Russia became an independent state post the fall of the Soviet Union in 1991. The years from 1999 to 2008 are considered the golden decade. It was the time when its economy grew with an average ratio of 7% and mainly the prices were boomed and most of the credit goes to the petroleum industry.
Best Russian Industries:
Russian economy mainly is based on three broad sectors and major industries. According to the World Bank’s data the maximum GDP comes from the service industry which is 62% of GDP, the industrial sector shares 32% and agriculture has a share of around 5%.
Russia became independent in 1991. Since then, the country is working to evolve as a stronger economy. The economy of Russia saw a rapid increase during 1999 and 2008. It helped in the stability of the country’s market. There was a recession and crisis in 2008 and post that, the Russian economy tried recovering and being stable from 2010 to 2012.
The country had to go through another downturn due to economic restructuring efforts. The economic situation then changed around 2017.
The economic industries which contribute to most of the gross domestic product are as follows.
Best industries in Russia
The GDP of the country was reported around $1.33 trillion in 2015. The service sectors are one of the largest sectors which contribute to the country’s economy the most. It makes up 60% of the GDP. the industry, further followed by industrial (36%) and agricultural (4%) sectors.
Service industry:
The service industry is the most integral part of the Russian economy. It includes a variety of particular economic activities including the tourism, healthcare services, financial, and marketing sector. This further includes the wholesale, retail trade, and personal and household stuff. Retail is one of the key players which generate more than $316.44 billion in revenue as an average.
This amount is 60% of the household income without taxes. The significance of this industry has increased rapidly over the last few decades. For instance, it was 38% in 1991. Today, the service industry hires around 63% of the Russian workforce.
It includes following further domains
- Financial services
- Travel and tourism
- Advertising
- Real Estate
- Marketing and Sales
- Wholesale
- IT services
- Catering
- Retail trade
- Social Services
- Real estate
- Arts and culture
- Communications
- Retail trade
Industrial sector:
The industrial sector is the second-largest industry in Russia. This industry consists of construction, manufacturing, mining, and electricity. Mining is one of the most significant and important activities. The common products which are mined in Russia are Gold, diamonds, copper, titanium, platinum and natural gas, and oil. Mining is not a simple process.
It involves the extraction, production, and sale of petroleum such as natural gas and oil. The extraction and refining of these products are the most profitable economies in the country.
In 2014, for instance, the oil and gas companies managed to contribute 98% to the large corporations of Russia. By December 2015, Russia was producing 10.83 million barrels of petroleum on the daily basis.
Russia is one of the mega and largest oils and natural gas producers across the globe and also exports more natural gas as compared to others.
The petroleum industry accounts for the 3 main largest exports, which are
- Crude petroleum (28% of all exports)
- Refined petroleum (18%)
- petroleum gas (8%)
Together, these products contribute $173 billion to GDP, which is around 13% of the total.
According to economists, the country’s dependability on the petroleum industry was the primary cause of the economic crisis. They further claimed that the lack of diversification makes it more vulnerable to the fluctuating prices of the global petroleum supply.
Defense industry
The Russian defense industry is one of the biggest industries in the world. It has more than 3 million workers. It is the larger one after the US defense industry. Russia also develops military weapons including tanks, helicopters, air defense systems, and fighting vehicles. These are few to name. Russian workers are experts in this craft since they have gained knowledge and experience over the years.
Russia has been leading the squad since World War II. They also sell their weapons to the Russian supporters in Africa and the Middle East. The defense industry has the complete support of the Russian military industry, and they buy heaps of new equipment every year.
Aerospace Industry
There is a great scope and potential of aircraft manufacturing in the essential sector and the employees are more than 350,000 people. The profile of the aircraft industry is quite high and competitive. They also manufacture mega aircraft like MiG-29 and the Su-30. The manufacturing of Sukhoi Superjet 100 has also been started to give it a fresh boost.
The space industries of Russia consist of more than 100 companies and they have employed more than 250,000 people. This is a highly technical job and always looks for skilled personnel for this field.
Automotive industry:
The automotive industry is another larger industry in Russia. It has employed more than 600,000 workers. Around 3 million Russians also work in the manufacturing of cars and trucks. Foreign car companies have also invested in Russia. Russia is at the 15th number in the list of car production across the globe. It is all due to these investments. There are car industries all over Russia and export cars to European and Asian clients.
Electronics and Telecommunication:
Telecommunication is one of the biggest industries in Russia. The government shares a friendly environment and situation for wireless communications. Russia enjoys a lot of support for a national broadband network, which brings it closer to the western world’s technological status. Many European and Asian technology companies are always rooting for a business association with Russia to expand and generate more business in the country. The demand for business had created a scenario with more jobs and successful electronics.
Financial & Accounts industry:
Russian financial industry keeps on growing constantly. There are a number of investment houses in Moscow. These companies have also expanded their business to foreign lands including North America, Asia, and Europe. Financial sectors are involved in the trading of stocks, bonds, and metals as well as real estate. These domains are a big part of the global company and provide employment opportunities to Russian lawyers, economists, and accounts specialists.
Agricultural industry:
The agricultural industry is not much stable in Russia. There are few lands that are limited to small areas within the country. The harsh weather and other geographical issues are the reasons why the agricultural land industry contributes the least to Russia’s GDP.
The agricultural land employs hardly 6% of the population across the country. It also includes the formal and informal sectors. The agricultural functions are further divided into forestry, fishing, hunting, livestock production, and crops cultivation. This is the reason Russia imports the food items and is not much into export of the food items.
Machinery Industry:
The machine-building industry is also one of the significant industries in Russia. It addresses the need of the manufactures of steam boilers and turbines. It further includes electric generators, electric locomotives, etc. This industry also deals with shipbuilding, the transmission of equipment, and electric power generation.
Chemical and petrochemical industry in Russia:
Russian chemical industry plays a vital role in the country’s economic growth. The industry deals with the providing of chemical raw materials. These chemicals are extracted from mines and include apatites and phosphorites, potassium salts, sulfur, and a number of other products, it also deals with the basic chemistry and organic process.
The production of mineral fertilizers includes basic chemistry. It also includes chlorine, sodium, sulfuric acid, and a few other products. Organic chemistry’s making involves synthetic rubber, chemical fibers, and plastics.
Metallurgy Industry:
The metallurgy complex of Russia deals with the extraction of metal, its smelting, production of roll stock. This industry also extended to ferrous and nonferrous metallurgy. 90% of the ferrous metal is used as metal with the steel in the country’s economy. The steel industry consists of the following enterprises
- Full cycle metallurgical plants
- Production of pig iron
- Steel and roll stock
- Steel plants
- Manganese silicon
Conclusion:
Russia is the world’s largest country, covering the maximum land. The country became independent after the 1991 Soviet Union fall. It has petroleum industry and services industries as biggest industries of the country which contribute the most to the GDP. Other big industries have also been discussed with the important details.
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