Exports and Imports

Economic Development, Advancements and Innovations

Table of Contents

Exports

  • Major Russian exports include – refined oil and petroleum products, gas and coal  with the greater part of the Russian export industry grounded in oil and petroleum products
  • Alternative major exports include machinery and equipment, natural gas, timber, fertilizers and armament.

Exports

Item categorization using the United Nations Harmonized Commodity Description and Coding Systems (HS), 4 digit representations are defaulted to in the graphs above. To select the depth of the categorization of the products, please use the selection panels in the lower left.

Primary Industry

Crude Oil

Units are in <th BPD> (thousand Barrels per Day)

  • Annually, an average of 1,850,222,000 barrels of oil was exported,of the total 3,842,490,000 barrels of oil produced
    • Calculated values from the graphs above, from thousand barrels per day to total barrels per year
  • The total export value was valued at 116.4 billion US dollars, accounting for 44% of the total export of the country
  • Russia has seen a steady 12.51603% increase since 2007 to 2018 in crude oil production

Natural Gas

  • Russia exported 251,2­95 million cubic meters of natural gas in 2018, from a total production of 690,348.845 million cubic meters
    • This represented a 63.60% consumption of the total production
  • The total export value was valued at 19.8 billion US dollars, accounting for 5.8% of the total export of the country
  • Russia has seen a 12.8942% increase in natural gas production since 2007 to 2018

Miscellaneous

  • The main industry of Russia is machine building – an industry mainly concentrated within Moscow, St Petersburg, the Urals, the Volga and eastern Siberia. The machinery sector of the Russian economy accounts for 30% of the GDP, providing each of the other industries with machinery needed. Furthermore, it has 70 branches, the most prominent and important sectors being; shipbuilding, instruments, electronics, robotics, plane building, agriculture and transport
  • A seconded industry in the Russian economy is Chemical/petrochemical industry. In producing various products in this industry such as fertiliser, chlorine, sodium and sulfuric acids. The minerals are mined in the world’s largest Solikamsk Mine, located above the Perm Oblast, where the minerals are shunted to surrounding cities for refining and chemical manufacturing. This industry further facilitates economic development.
  • The fuel and energy sector of the economy fuels other sectors of the economy and ensures economic development. Fuel and energy industry refers to the mining, refining and concentration of various minerals such as coal and petrol. Russia places 2nd largest producer of electric power behind the USA, with 3rd place in domestic energy consumption.
  • Metallurgy industry of Russia is concerned with the mining, enriching, smelting and production of roll stock. Including ferrous and non-ferrous metals, 90% of the metal used in the nation’s economy is non-ferrous, with steel the most significant in proportion. The price of sale for non-ferrous metal is significantly lower than that of ferrous, as it occupies a lot more space in the economy.
  • The agricultural sector of the Russian economy is concerned with the manufacturing of agricultural products. Agricultural lands make up 219.6 million hectares of land, with staple produce being grain, sugar beets, sunflowers, potatoes and flax. Crop farming comprises around 40% of agricultural output

In respect to productivity, much of Russia’s GDP is sustained through the industry of natural resources and the manufacturing of chemicals. In order to maximise productivity and motivate economic progression, the Russian economy exploits the abundance of lucrative natural resources such as oil, coal and iron to form 60% of the national GDP. As much strain is placed on natural resources for means of employment and national income, initiatives in manufacturing machinery, electronics and the formulation of chemicals and petrochemicals have forged industries that alleviate this strain, comprising the other 40% of the economy.

Destination Countries

China accounts for most of the exports of Russia (at 11% of total exports going to China). This is due to a few factors, including by definitely not limited to

  • Large population gives China an extreme need for goods
  • Road and rail transportation is possible to/from China, through notable locations such as the Zabaikalsk/Manzhouli , Suifenhe/Grodekovo and Hunchun/Makhalino railway crossings
  • Economic and political policies that allows for the easy trading of goods to/from China, most noably the BRICS association, consisting of Brazil, Russia, India, China and South Africa.

 The Commonwealth of Independent States, or the initialism CIS, is an association of former USSR states, now independent. It consists of 12 countries;

  1. Armenia
  2. Azerbaijan
  3. Belarus
  4. Georgia 
  5. Kazakhstan
  6. Kyrgyzstan
  7. Moldova
  8. Russia
  9. Tajikistan
  10. Turkmenistan
  11. Ukraine
  12. Uzbekistan.

The most prominent importer of Russian goods is Belarus, followed by Ukraine, importing 5.4% and 2.3% of all Russian exports respectively.

Russia satisfies the needs of these CIS countries by way of oil, oil products, gas, timber, machinery and equipment. For majority of the CIS countries, Russia remains a major trading partner.

Imports

  • Major imports of Russia include: Vehicles, equipment and machinery, consumer goods, foodstuffs, chemical products and industrial consumer goods

Item categorization using the United Nations Harmonized Commodity Description and Coding Systems (HS), 4 digit representations are defaulted to in the graphs above. ​

Countries of Origin

Again, China accounts for most of the imports of Russia (at 20% of total imports coming from China). As aforementioned, this is due to a few factors, including by definitely not limited to

  • Road and rail transportation is possible to/from China, through notable locations such as the Zabaikalsk/Manzhouli , Suifenhe/Grodekovo and Hunchun/Makhalino railway crossings
  • Economic and political policies that allows for the easy trading of goods to/from China, most noably the BRICS association, consisting of Brazil, Russia, India, China and South Africa.
 

The most significant of the CIS countries mentioned above are Belarus and Ukraine, accounting for 5.7% and 1.9% of the total Russian import countries of origin respectively.

Analysis

The demand for various goods in imports and exports allows for lasting trade partnerships of Russia with countries across the globe. Considering that Russia’s resources and their respective export quantities are able to satisfy the demands of politically amicable nations, they are able to obtain further means of production. Russian exports consist predominantly of mineral products of oil, gas and coal products (forming 58% of exports, USD 199 billion), with less prominent sources of foreign income from armament, machinery and fertilizer. Major export partners of export products, with particular inclination towards oil, coal and natural gas as significant exports, include the countries of the CIS (previously soviet satellite countries), Germany, Italy, China, Turkey, Poland, Switzerland, USA, UK and Finland, a total net value of Russian exports lying at $342 billion (USD) of 2018. With particular export consumption was seen in the Dutch and Chinese consumers accounting for 8.1% and 11.0% of Russian exports (with a total value of USD 65.322 billion), they can import products such as vehicles, equipment, consumer goods (public and individual/public), foodstuffs and chemical products.  

The value of such imports, as of 2018, was $222 billion with major imports totalling USD 71.04 billion (20% of imports from China, 12% from Germany), leaving the trade balance of Russia in 2018, $120 billion. With such a strong trade balance seen in the Russian GDP, it is seen that the value of Russian exports is able to satisfy the cost of Russian needs, facilitating economic growth in the economic “room” left in investing in desirable assets, thus affecting further economic growth in the Russian economy as more goods are able to be bought and sold. The investment of the agreed USD 15 billion will be used in stimulating the growth in popularity of the less predominant industries of Russia. The money will be used in training programs to provide those without jobs or inadequate qualifications with the required knowledge and skills needed in the industries of manufacturing, electronics and agriculture. In providing those with no or low-level employees with the skills to be used in earning more money in the growing industries of the Russian economy, people, in turn, earn more money, allowing for the government to increase interest rates, ultimately improving funding of government operations and allowing for economic growth.