Discussions continue within the context of Russia's World Trade Organization accession to eliminate or modify trade barriers to be consistent with internationally accepted trade policy practices.

Overview

Besides its resource-based industries, Russia has developed large manufacturing capacities, notably in metals, food products, and transport equipment. Russia is now the world's third-largest exporter of steel and primary aluminum.

The global economic crisis hit Russia hard, starting with heavy capital flight in September 2008, which caused a crisis in its stock market. As the global financial crisis gathered steam in the fall of 2008, the accompanying steep fall in global demand, commodity prices, and tightening of credit served to almost grind Russia’s economic growth to a halt in the fourth quarter of 2008. By late 2009, however, the Russian economy had begun a modest recovery, bolstered by government anti-crisis policies, the global rebound, and the nearly 50% rise in oil prices over the course of the year.

Foreign Investment

Foreign direct investment (FDI) in 2009 fell to less than $40 billion after reaching an all-time high of $75 billion in 2008. Although the annual flow of FDI into Russia was in line with those of China, India, and Brazil, Russia's per capita cumulative FDI lagged far behind such countries as Hungary, Poland, and the Czech Republic. By late 2009 foreign investment was rebounding, but pre-crisis challenges remain, such as the difficult business climate, lack of transparency, weak rule of law, and corruption.

Did you know?

• The U.S. exported $5.4 billion in goods to Russia in 2009, a 42% decrease from the previous year.
• U.S. imports from Russia were $18.2 billion, down 32%.
• U.S. exports to Russia were machinery, vehicles, meat (mostly poultry), aircraft, electrical equipment, and high-tech products.
• Russian exports to the U.S. were fuel oil, inorganic chemicals, aluminum, and precious stones.

 

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