Russia's Most Important Economic Sectors Essay Example | Topics and Well Written Essays - 1250 words

Russias Most Important Economic spheres - Essay ExampleShortly after liberty, the new Russian government announced a much more determined program of political and economic reformation. The agenda included an alteration of the financial system from the determine of state planning which is the basic and administrative direction to the well agreed market-based economics. As result The economic decline bottomed out in mid-2009 and the providence began to grow in the terce quarter of 2009 (Economy Overview n.d.). On the other side, Russias financial growth was still focused mainly in a few sectors. The advantages of growth were not widely dispersed throughout the society. Over one-third of the people of the Russian Federation sustained to live below the poverty line. jibe to some study it is very clear that Russias long term challenges are inadequate workplace, corruption, complexity in accessing capital for smaller non energy companies, and divest infrastructure in need of huge in vestments. Russia ranks ninth as the largest economy of the world it contributes to the sixth place by purchasing power. The country has abundance of the petroleum, embrocate and natural gas. The country is in like manner the store house of rare and precious metals. Despite the setbacks faced by the other countries in the erstwhile Soviet Union, Russia managed to be in a good position in the worlds economy. The main sectors of the Russian economy are energy, natural resources, agriculture, industry and manufacturing. Energy Sector One error of the energy business is its construction, which is subjected by government-backed monopoly and distinguished by inequity next to private businesses, small family operators and global players. State-owned company such(prenominal) as Gazprom or Rosneft, as well as several confidential companies with close links to the supporting leadership such as Gennady Timchenkos Novatek, has privileged accession to licences, upstream assets, tax exception etc. Foreign investors are able to function in Russia only if they set up good functioning relationships with component of the controlling clans. The quickest way to be honored projects and contract in Russia is to present those clans stake in reputable international companies. The energy sector also endures from poor value of administration. Since the rein of Vladimir Putin and his associates to power in 2000, activities to important positions in the Russian establishment, as well as the energy industry, have been made accord to certain criterion individual loyalty and the capability to manage cash flows Natural Resources Including Coal, Gas, Oil, Timber and Metals Sectors Russia may contain as much as 35% of the worlds supply of natural gas. It has proven reserves nearly twice that of Iran, the number two spot holder. Its reserves of oil are debated, but the US geologic Survey estimates that they may be as high as 25% of the worlds oil. The US Department of Energy states Russia is also the worlds largest exporter of natural gas, the second largest oil exporter, and the third largest energy consumer (Russian Resources 2010). The vast gas, oil, coal, and timber raw materials of Siberia and the Russian Far East create Russia rich in mineral deposits. On the other hand, most such resources are positioned in remote and climatically adverse