The industry represents today 28% of Russian GDP and production of raw materials, including oil and gas, alone represent 10% of GDP. Among the major sectors of the Russian industry, there are naturally the use of energy (oil, gas, coal, hydro), metallurgy (mainly focused on nickel and steel), automotive and industrial specializations such as armaments (2nd global player) and nuclear. The space sector also experienced its heyday with "Sputnik" in 1957 which was the first craft to orbit the Earth and thus marked the beginning of the space age and Yuri GAGARINE who was the first man to journey into outer space on 12 April 1961.
The exploitation and management of energy represents today the first industrial activity of the country. Moreover, Russia is the world's largest energy exporter with 70% for hydrocarbons exports. It has the largest natural gas reservoir, 1/8 of oil reserves, 1/3 of coal reserves, 1/4 of wood reserves and 14% of uranium reserves. The Russians jewels of this market are companies like Gazprom (1 gas producer), Rosneft (1 oil producer) or Lukoil (2nd oil producer).
As for the automotive sector whose leaders are AvtoVAZ and GAZ, it greatly recovered since the 2009 crisis and is now the second European market and the 7th largest market for the sale of new vehicles. To modernize this sector, the Russian state encouraged the implementation of major automotive groups in the industrial area of Kaluga within 200 km from Moscow such as PSA Peugeot-Citroen, Renault, which bought 67.13% of AvtoVAZ and Volvo. This type of practice shows a real opening of Russia to the foreign know-how, creating new opportunities for Western companies that wish to benefitand to establish a lasting presence on these markets of the future. In few years, Russia will be the largest European market of automotive sector ahead of Germany.
Did you know?
- The MS-21 aircraft project aims to compete with medium haul Boeing and Airbus;
- The second Russian airline Transaero, has placed an order for 20 Airbus aircraft in 2014 for $ 5.3 billion
- The new plant of L'Oréal, located in Kaluga announced planned sales of cosmetics of 120 million a year
- The region of Oulianosk will host a large aerospace construction of transport aircraft center
- The head office of Gazprom will now be located in St.Petersburg
- More than 20% of global reserves of untapped oil lie in the Arctic of which 84% are located in Russia