International Market Development

International market development | Comprehensive analysis of Russian economy and market conditions

Author : Bozhou Marine

Update time : 2020-12-24 15:35:24

In this article, we mainly introduce the basic situation of the Russian market. Including: geographic location, major cities, population conditions, ethnic groups, major festivals, natural resources, major industries, infrastructure construction, GDP, foreign exchange reserves, employment, prices, corporate income tax, personal tax rates, etc.

Introduction

The Russian Federation (Russian: Российская Федерация, English: Russian Federation), also known as Russia (Russian: Россия, English: Russia), consists of 22 autonomous republics, 46 states, 9 border regions, 4 autonomous regions, and 1 autonomous prefecture , A federal semi-presidential republic consisting of 3 federally administered municipalities. It is located in the northern part of Eurasia, straddling the two continents of Europe and Asia, with a land area of 17.0982 million square kilometers, which is the largest country in the world.

In the international system of “one super, many powers”, Russia is a powerful country with greater influence, and its military industry is strong, especially in higher education and aerospace technology, which ranks among the world's forefront. Russia is one of the five permanent members of the United Nations Security Council and has one-vote veto power on Security Council resolutions. In addition, it is also a member of the Shanghai Cooperation Organization and one of the BRIC countries.

Capital

Moscow (Russian: Москва; English: Moscow) is the capital of the Russian Federation and the capital of the Moscow region. Moscow is Russia's political, economic, cultural, financial, and transportation center and the largest comprehensive city. It is an international metropolis.

Moscow is located in the central European part of Russia, in the middle of the Eastern European Plain, across the Moskva River and its tributary Yauza River. The upstream entrances of Moscow and the Volga basin are connected with the river mouths. They are extremely important transportation hubs in Russia and even on the Eurasian continent, as well as important industrial manufacturing centers, technology, and education centers in Russia.

Moscow - Picture | Google

Main City

1.Moscow

Founded in 1147, Moscow is the capital of Russia and the capital of Moscow Oblast. It is also Russia's political, economic, cultural, financial, and educational center, just like Shanghai is to China. It is Russia's largest comprehensive city and an international metropolis.

With an area of 2511 km² and a population of 14.15 million, Moscow is the largest city in Russia. Because of its 800-year long history, it is also a famous cultural tourism city in the world.

2. St. Petersburg

St. Petersburg was founded in 1703. It is a municipality directly under the Central Government of Russia, the capital of Leningrad Region, and the cultural, political, economic, industrial, and technological center of Russia. Because it is the most westernized city in Russia, it is Russia's window to Europe.

With an area of 1,439 square kilometers and a population of about 5.132 million, St. Petersburg is the second largest city in Russia after Moscow. It is also known as the "Northern Capital" of Russia because it is the northernmost city in the world with a population of over one million.

St. Petersburg - Picture | Google

3. Yekaterinburg

Founded in 1723, Yekaterinburg is located on the Iset River 2000 kilometers east of the Russian capital of Moscow and on the east side of the Ural Mountains. It is the administrative, industrial, technological and cultural center of Sverdlovsk Oblast.

Yekaterinburg is the easternmost city in Europe and the westernmost city in Asia. It is not only developed in science and technology and industry, but also has a certain historical significance.

4. Nizhny Novgorod

Nizhny Novgorod was founded in 1221 and is the capital of the Russian Federation and the center of Russia's machinery industry. It has an area of 410 square kilometers and a population of about 1.41 million. It is 400 kilometers away from Moscow, the capital of Russia.

Russia has such a saying: "St. Petersburg is the head of Russia, Moscow is the heart of Russia, and Nizhny Novgorod is Russia's pocketbook", therefore, it is called Russia's third capital.

5. Rostov-on-Don

Rostov-on-Don was founded in 1749 and is the capital of Rostov Oblast, which is one of the largest regions in Russia. Rostov-on-Don is known as the "Southern Capital of Russia". It has a pleasant climate and is very suitable for living. In 2012, it was selected as the "City with the Best Environment in Russia"; in 2018, it will become one of the cities hosting the World Cup in Russia.

6. Volgograd

Volgograd, also known as Stalingrad and Tsaritsyn, was built in 1589, was destroyed by a fire, and was rebuilt in 1615. Volgograd can be said to be one of the oldest cities on the Volga River in Russia.

Volgograd is also Russia's most important industrial and commercial center. However, Volgograd is not a megacity, but a large city with a prominent geographical location. It is only the 14th largest city in the Russian Federation.

7. Samara

Samara is an industrial city in Russia, with a population of about 1.2 million, making it one of Russia's largest cities. Samara has developed in the petroleum industry, aerospace industry, precision machine tool manufacturing, hydropower, and automobile manufacturing. The industries mainly include machine manufacturing, oil refining and petrochemicals. Become a major industrial city in Russia.

8. Kazan

Kazan is a city located in Russia in Eastern Europe. It was founded in 1790. It is the economic, transportation and cultural center of the middle reaches of the Volga River. It is the 8th largest city in Russia. Kazan, along with Moscow and St. Petersburg, is listed as the three A-class historical and cultural cities in Russia. It has many tourist attractions and can be said to be one of the most popular tourist cities in Russia.

9. Kaliningrad

Kaliningrad is one of the cities in Russia and the smallest state in the Russian Federation. It belongs to the Northwest Federal District. However, Kaliningrad is not closely connected with Russia, but an enclave. It is more than 15,000 square kilometers, equivalent to the area of Beijing.

  Jet Lag

The difference between Beijing time and Moscow time is 5 hours (Beijing time minus 5), and the difference is 4 hours in summer (because Russia implements daylight saving time).

  Population and Ethnicity

Russia has a total population of 144.5 million (as of 2017), with a total of 194 ethnic groups, of which Russian ethnicity accounts for 77.7%.

  Language

Russian is the official language of the Russian Federation. Each republic has the right to define its own national language, which has more than 30 languages and is used together with Russian in the territory of the republic.

  Main Holiday

New Year / January 1st
Orthodox Christmas / January 7th
Defender of the Fatherland Day / February 23rd
Astronautic Day / April 12th
Victory Day of the Great Patriotic War / May 9th
Maslenitsa / the eighth week after Easter
National Sovereign Declaration Passing Day / June 12th
Mourning Day / June 22nd
People's Unity Day / November 4th
Harmony and Reconciliation Day / November 7th
Constitution Day / December 12th

Rissian Dolls & Vodka & Caviar - Picture | Google

Natural Resources

Russia has the world's largest reserves of mineral and energy resources and is the largest exporter of oil and natural gas. It has the world's largest forest reserves and lakes containing about 25% of the world's fresh water.

80% of Russia's total resource reserves are distributed in Asia.

Forest and water resources: Forest covers an area of 867 million hectares, accounting for 50.7% of the country's land area, ranking first in the world. The forest stock volume is 80.7 billion cubic meters.

It is rich in water resources, with a total runoff of 4270 cubic kilometers per year, ranking second in the world. Hydropower stations built on many rivers are Russia’s main source of electricity.

Mineral resources: coal (Kuzbass), petroleum (Tyumen oil field, second Baku oil field), natural gas, iron (Kursk), manganese, copper, lead, zinc, etc. The proven oil reserves of 8.2 billion tons (2009 data), accounting for 4 to 5% of the world's proven reserves, ranking eighth in the world. The proven reserves of natural gas are 48 trillion cubic meters, accounting for one-third of the world's proven reserves and ranking first in the world.

Diamond resources: Russia recently announced a diamond mine discovered in the 1970s. The mine is located in a crater with a diameter of more than 100 kilometers in eastern Siberia. The reserves are estimated to exceed one trillion carats, which can meet the needs of the global gem market for 3000 years. Scientists say that this crater, called "Popigai", has a history of more than 35 million years, and the amount of diamonds under it is estimated to be 10 times the sum of diamond reserves in other parts of the world.

Major Industries

Oil and gas industry

The oil and gas industry has played a central role in the Russian economy for a long time, and the price of Ural oil is an important basis for Russia to formulate its national fiscal budget. In 2014, Russian crude oil production hit a record high in the post-Soviet era, with an average daily output of 10.58 million barrels, an increase of 0.7% compared to 2013, mainly due to the increase in the output of small non-state crude oil producers.

Metallurgical industry

Russia is rich in mineral resources. The reserves and output of metals such as iron, aluminum, copper, nickel, and precious metal minerals such as gold, silver, platinum and gems (mainly diamonds) are among the top in the world. The ore mining and metallurgical industries play an important role in the Russian economy. Role, the non-ferrous metallurgy industry is one of Russia's important industrial sectors, its output value accounts for about 2.8% of Russia's GDP and 10.2% of industrial production. The diamond processing industry occupies an important position in the Russian industry and is one of the sources of federal budget revenue.

Military industry

The Russian defense industry has inherited most of the former Soviet Union’s huge national defense. It has a relatively complete system from design, research and development, testing to production, and a relatively complete department. It is one of the few in the world that can produce weapons and equipment in the fields of sea, land, air, and space. country. With the limited update speed of Russia's domestic equipment, the Russian defense industry has vigorously developed foreign cooperation and exports. In 2014, exports of weapons and equipment reached 9.8 billion U.S. dollars. In the list of Russian export weapons, military aircraft occupy the first place, followed by naval ships, army equipment and air defense weapons.

Russian Army - Picture | Google

Aerospace industry

The aerospace science and technology industry is one of the few fields in the former Soviet Union that has a leading position in the world. After the collapse of the Soviet Union, Russia inherited about 90% of the aerospace industry of the former Soviet Union. Russia has vigorously revitalized the aerospace industry through measures such as the establishment of an aerospace agency and the formulation of an aerospace law. At present, the scale and level of Russia's aerospace industry are among the highest in the world.

Russian Space Station - Picture | Google

Nuclear Industry

Since the establishment of the world's first nuclear power plant in 1954, Russia has accumulated rich experience and obvious technological advantages. The Russian government has continuously introduced policies since 2006 to vigorously support the nuclear energy industry to go global. The Russian government established the Russian National Atomic Energy Company in 2007, which merged more than 240 domestic related companies and scientific research units, responsible for all related businesses from uranium mining to nuclear power plant construction, greatly enhancing the international competitiveness of the Russian nuclear industry. At present, the miniaturization and diversification of nuclear energy that Russia is actively developing has fully demonstrated its advantages.

Russian Nuclear Industry - Picture | Google

Infrastructure

Highway

As of the end of 2011, the total mileage of the Russian road network was 1.094 million kilometers. In 2012, the turnover of highway passenger transportation was 146.4 billion person-kilometers, and the turnover of freight transportation was 249 billion ton-kilometers, a year-on-year increase of 11.76%.
water transport

As of the end of 2011, Russia had 2,750 sea passenger and cargo ships and 30,600 inland passenger and cargo ships. The main seaports are located in the Baltic Sea, the Black Sea, the Pacific Ocean, the Barents Sea, the White Sea, etc., including Murmansk, St. Petersburg, Vladivostok, Nakhodka, Novorossiysk, etc. In 2012, the sea freight turnover volume was 126 billion ton-kilometers, the ocean passenger volume was 1.1 million passengers, and the inland water passenger volume was 14 million.

Aviation Industry

There was a total of 232 airports at the end of 2009, including 71 international airports. The main airports are Sheremetyevo International Airport in Moscow, Vnukovo International Airport 1, Domodedovo Airport, St Petersburg International Airport, Nizhny Novgorod Airport, Novosibirsk Airport, Yekaterinburg Airport, Khabarovsk Airport, etc. There are 46 existing airlines, including 11 large airlines with an annual capacity of more than 1 million passengers. In 2012, Russian airlines carried 76 million passengers, a year-on-year increase of 15%; cargo volume was 1.2 million tons, the same as in 2011; cargo turnover was 5.1 billion ton-kilometers, a year-on-year increase of 2%.

Pipeline Transportation

As of July 2013, the total length of Russia's oil and gas pipelines exceeded 246,000 kilometers. In 2012, the total amount of oil and gas transported was 1.096 billion tons. The Sino-Russian crude oil pipeline was completed in 2010, and the trial operation began on November 1, and commercial operation began on January 1, 2011. In 2011, Russia's "North Stream" natural gas pipeline was completed to transport gas, opening up a new way to bypass Ukraine and directly transport gas to Europe. In 2012, the pipeline transportation freight turnover volume was 2.45 trillion ton-kilometers, a year-on-year increase of 1%.

No longer in economic power

In 2019, Russia’s economy grew by 1.3% year-on-year in real terms, which is approximately US$1.69 trillion at the average exchange rate. It ranks 11th in the world, which is lower than Canada, which ranks 10th (GDP is approximately US$1.736 trillion), and slightly higher than that of Canada. 12-ranked South Korea (GDP about 1.64 trillion US dollars).

Russia's GDP growth rate over the years | TRADING ECONOMICS

In 2019, Russia's global GDP fell below 2%. From the perspective of the global economic map, Russia's glory is no longer. In addition to a few economic fields such as energy, Russia also has a certain right to speak, in other economic fields Russia is no longer a major player.

Affected by the epidemic, the GDP growth rate will drop sharply in 2020. According to the Russian Central Bank's forecast, Russia's GDP will fall by 4% to 5% this year.

Foreign exchange reserves have grown steadily in recent years

Russia's foreign exchange reserves trends over the years | TRADING ECONOMICS

From 2016 to 2020, Russia's foreign exchange reserves have grown rapidly. As of May 1, 2020, international reserves were 567.3 billion US dollars.

Employed population and unemployment rate fluctuate greatly

Russia's employment trends over the years | TRADING ECONOMICS

From 2011 to 2019, Russia's employment population fluctuated significantly. In 2020, affected by the epidemic, the economy has experienced a sharp decline and the employment population has plummeted.

Russia's unemployment rate trend over the years | TRADING ECONOMICS

From 2011 to 2019, the unemployment rate in Russia fluctuated greatly. In 2020, the unemployment rate will increase sharply due to the impact of the epidemic.

Research by the analysis department of the international inspection and consulting website FinExpertiza shows that in the second quarter of 2020 (the peak of the new crown pandemic), 4.87 million Russians were unemployed (on average per month), but they were not counted as unemployed. According to the study: "The number of unemployed persons from April to June announced by the Russian Statistics Office was (on average) 4.47 million people per month, accounting for 6% of the labor force. Therefore, considering the hidden part, the actual number of unemployed persons at the peak of the pandemic exceeded 930. 10,000 people, or 12.1%."

Prices continue to rise and inflation rates fluctuate greatly

Russia's Consumer Price Index CPI Trends over the Years | TRADING ECONOMICS

From 2011 to 2020, the growth of the Russian consumer price index CPI accelerated and prices continued to rise.

Russia's inflation rate trend chart over the years | TRADING ECONOMICS

From 2011 to 2020, Russia's inflation rate fluctuated greatly. Since 2016, it has remained low and the economic growth rate has dropped significantly.

Corporate income tax 20%

Russian corporate income tax trends over the years | TRADING ECONOMICS

In 2020, the Russian corporate income tax rate is 20%.

Personal income tax 13%

Russian personal income tax trends over the years | TRADING ECONOMICS

In 2020, the Russian personal income tax rate is 13%.

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