The economy of Russia is an upper-middle income mixed and transition economy, with enormous natural resources, particularly oil and natural gas. It is the fifth-largest economy in Europe, the world's eleventh-largest economy by nominal GDP and the sixth-largest by PPP. Russia contains over 30 percent of the world's natural resources. The World Bank estimates the total value of Russia's natural resources at $75 trillion US dollars.
The following tables and chart will tell the change details in last 5-10 years:
Russia Distribution of workforce from the last 5 years:
Russia Distribution of GDP across economic sectors:
Here attached the last 10 years chart of Russia GDP: (amount in billion USD):
3 Sectors of the Economy – Agriculture, Industry and Services:
Agriculture plays an important role in the Russian economy. It employs almost 5.76% of the total workforce and contributes almost 3.45% in Russian GDP.
Major products in this Sector:
Wheat: Russia is the third biggest producer of wheat in the world after China and India. Wheat production in 2020-21 was put at 84.5 million tons, compared with the previous estimate of 83.5 million. The country's wheat exports in 2020-21 are at 38.8 million tons, unchanged from the figure published in November, but up on the 34 million attained in 2019-20. Russia has become a major competitor to all other wheat exporting countries.
Barley: Russia is the biggest producer of barley in the world, harvesting over 17 mmt per year. Canada and Germany harvest about 12 mmt each. Barley production is important for beer making and cheap cereals. Some barley flour is added to bread. Russia launched some export tax to stabilize the price in domestic market. Russia charged 10 euros per ton for every ton export of barley.
Sunflower Seed: Russia is the second biggest producer of sunflower seed in the world after Ukraine. The export value of sunflower seeds in Russia was USD 463.30M, and the export volume was 574.44M metric ton in 2020. Russia's export duty for sunflower seeds will rise to 50%, but will not be less than $320/ton, for the period between July 1, 2021 and Aug. 31, 2022.
Agrciulture Subsidy in Russia:
Total support to agriculture (TSE) was equal to 0.7% of GDP in 2017-19. This percentage has been decreasing since the mid-1990s, largely reflecting GDP growth and the declining GDP share of the agricultural sector. Taxpayers provide 54% of total support transfers, the remaining 46% coming from consumers. Agricultural prices are supported at an average of 7% above the international levels (NPR).
Support to producers fluctuated significantly over the long-term, but has stabilized somewhat since 2014 with levels between 9% and 13% of gross farm receipts (%PSE). Around 78% of total support to agriculture (TSE) in 2017-19 was provided to producers individually , with the rest directed to general services for agriculture (20%) and to support agricultural commodity buyers (2%).
Industry is an important part in the Russia's economy. It accounts for 32% of GDP and employed almost 26.5% of the workforce.
Major Industries in this Sector:
Defense Industry: The defense industry of Russia is a strategically important sector and a large employer in Russia. It is also a significant player in the global arms market, with Russian Federation being the second largest military products exported after the USA. Russia is the second largest conventional arms exporter after the United States, with $13.5 billion worth of exports in 2019. Combined, the US and Russia account for 57% of all major weapons exports.
Mining: Russia is the largest producer of palladium and nickel (20% of world output), and ranked second in the production of aluminum and platinum-group metals (PGMs), third in potash, sixth in gold, and seventh in mine copper. Russia also produced a large percentage of the CIS's bauxite, coal, cobalt, diamond, lead, mica, natural gas, oil, tin, zinc, and many other metals, industrial minerals, and mineral fuels. Russia's metals and mining industry represents around 3%-5% of Russia's 2019 GDP and also accounted for 16% of total Russian exports in 2019 (or USD53 billion), the second-largest sector after oil and gas.
Petroleum: The petroleum industry in Russia is one of the largest in the world. Russia has the largest reserves and is the largest exporter of natural gas. The eighth largest oil reserves, and is one of the largest producers of oil. It is the third largest energy user. The value of Russian exports of crude oil amounted to nearly 73.4 billion US dollars in 2020, down from over 121.4 million US dollars recorded in the previous year.
Service sector is an important part in the Russia's economy. It contributes almost 54% in the GDP and employed almost 67% of the total Russia's workforce.
Major Industries in this Sector:
Finance: The Russian banking system comprises two main parts: commercial banks and the central bank (Sberbank Rossii, Russian Savings Bank). Most commercial banks offer current and savings deposit accounts, while only more established banks in Russia offer currency exchange, investment, and corporate services. As of 1 January 2020, 60.3% of the banking sector's total assets were held by the top five Russian banks. State-owned banks continue to play a significant role in the stabilization and development of the Russian banking sector.
Tourism: The travel and tourism industry both directly and indirectly contributed a total of 5.4 trillion Russian rubles to the Russia's gross domestic product in 2019. Compared to the previous year, the value increased by approximately 50 billion Russian rubles. More than 5 million tourists visited Russia in January-December 2019. Tourist arrivals to Russia have surged by 20.5% in 2019.
Information Technology: In 2019, 1.3 million people were employed in the IT sector (1.7% of the employed population of Russia, 2.7% of GDP). According to the International Data Corporation (IDC), a global leader in market intelligence for IT, the value of the Russian IT market grew 7% to a value of $24.8 billion in 2019. The main growth drivers in 2019 were concentrated in software, services and hardware solutions.
Top Companies in Russia
|Company Name||Sector||Forbes 2000 Rank|
|Surgutneftegas||Oil and Gas||187|