Russia Overview

Capital City: Moscow

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The economic activity slackened in 2005 but is still dynamic. Annual GDP growth rate was 7.2% in 2004 and 5.5% in 2005. The OECD forecasts a 5.2% growth in 2006. This economic expansion relies on oil prices steadiness and on wealthy public funds. Russian economy is dependent on raw materials prices accounting for 80% of its exports; Russia is the first productor of natural gas. The country is the world's second largest producer and third largest exporter of petroleum. Inflation remains high and adds up to 11.5% in 2005.

Russia's main activity sectors are agriculture (the sector employs 13% of the active population) and natural resources extraction (gas, oil, diamonds, nickel, platinum, etc.). The banking sector has not undergone a complete restructuring yet, following 1998 financial crisis and business climate remains uncertain due to political tensions between diverse influential groups. Services account for 60% of the GDP. Russian market's major opportunities are capital goods, food-processing products and chemicals.

Its top three export partners are Germany, the Netherlands and Italy.
Russia's top three import partners are Germany, Belarus and Ukraine. Russia mainly imports capital goods, means of transport and machinery.