At 17,075,200 square kilometers, Russia is the largest country in the world and borders a total of 14 countries and five seas. It is the ninth most populous country in the world with over 144 million people. Western Russia is the most urbanized and populated area, with 77% of inhabitants located there. The country is a multi-ethnic state that is socially and geographically multifaceted.
Due to the size and the various climate zones, Russia has an immense amount of raw material. Additionally, it consists of a quarter of the world’s gas reserves. The natural resources produced by Russia have allowed the country to develop in to one of the world’s largest energy producers.
As a raw material giant, Russia is placing enormous importance to infrastructural projects. Accordingly, high infrastructure investments are planned for the future, these projects include: road construction, railways, airports, ports and power plant construction, etc.
The defense industry in Russia employs 2.5 million people and makes up 20% of all manufacturing jobs in the country. In terms of defense, this makes Russia the number two exporter of arms on a global level.
Russia’s energy industry holds an important role in the economic development of the country. Its main exports are energy from oil, petroleum products, gas, and coal. Natural resources used by Russia account for 95.7% of the nation’s wealth.
One of the leading industries in Russia is the Machine industry. The country is responsible for 30% share of all machines produced. This sector includes more than 70 branches and provides all other industries with the machinery and equipment needed.
Despite the huge potential for energy production, the Russian energy sector is modernizing and expanding due to technical residues. Among top priorities for the country are investments in the fields of wind energy, solar power and hydropower. There will be major prospects for foreign investment in oil and gas, for international companies seeking an equity stake in Russian energy reserves.
Additionally, the increasing market size of the Russian economy has started to attract a greater influx of foreign direct investment. In order to sustain the improving business climate, Russia will focus on structural reforms to raise potential growth and economic resilience. As energy prices remain the same and labor and capital become fully utilized, the economy will grow stronger. This gives the country growing potential for the future.
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