Russian economic reforms have made considerable progress since Mr Putin became President in 2000. The GDP growth and the surplus/deficit in the state budget are closely linked to world oil prices. The GDP growth rate was 9.7% in 2006, and 8.1% in 2007. Russia is one of the most industrialized of the former Soviet republics. However, years of very low investment have left much of Russian industry antiquated and highly inefficient. Oil, natural gas, metals, and timber comprise almost 80% of Russian exports.
Russia’s main trading partners are Germany, Italy, the Netherlands, Switzerland, Britain, the United States, Ukraine, Kazakstan, Belarus, China, and Japan. Exports for 1995 estimated at US$77.8 billion, imports US$57.9 billion. Russian Chamber of commerce and Industry provides support in protecting entrepreneurs’ business interests, promoting interaction between entrepreneurs and the government authorities, encouraging development of an educational system to train business managers, and mediating in disputes arising between businesses and entrepreneurs.
Russia’s biggest export is now the world’s hottest commodity – energy. Crude oil futures topped $130 a barrel for the first time ever. That nearly ensures that inflation won’t be easing in Russia any time soon, keeping the ruble strong. The Russian economy remains out of sync with the worries in the rest of the world. Recent economic reports have shown that economic growth is actually accelerating. Russia has easily weathered the credit turmoil plaguing international financial markets. It has very little debt, ample liquidity thanks to its oil resources, and growth is still strong.
Russia is a strategic market for American firms, particularly for small and medium-sized companies. The EU and Russia also share enough interests to develop strategic partnership. Economic relations of Russia and the EU have grown by more than 70 percent over last five years. Russia now sends 60 percent of its export to the EU countries. As for the EU, Russia is the biggest oil and gas supplier which meets one third of its consumption.
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