The increase in the real gross domestic product in the Russian Federation will be 4.7 percent over the course of 2010. The increase will be fueled mostly by exports. Reduced demand around the world will in the medium term reflect negatively on the health of the Russian economy.

 Russian mobile operator Mobile TeleSystems has outsourced the daily operation and maintenance of its entire mobile network across central Russia to Nokia Siemens Network as part of a five-year managed services deal.

Opportunities in the Russian construction market remain considerable, and the future of the market looks bright.

The main type of fuel used in Russia is natural gas. In 2009, the share of gas in the Russian energy equation was 56.2 percent. Oil accounted for only 18.3 percent of the country’s energy consumption, coal for 14.4 percent, nuclear energy for 5.3 percent, and hydropower for 5.6 percent.  

The level of industrial production in Russia went down by 10.8 percent, according to the State Statistics Service. For the last month of the year, output increased by 2.7 percent on year-on-year basis. Compared to figures for November 2009, production in December grew by 5 percent.

Fitch Ratings changed its assessment of the Russian economy from “negative” to “stable,” affirming long-term domestic and foreign currency issuer default ratings as BBB. Short term foreign currency issuer default rating was set at F3, while the country ceiling indicator was fixed at BBB+.

The initial capacity of the 1 220-mm (48 in) pipeline is 600 thousand barrels per day. By 2016 the capacity of the pipeline will be increased up to 1 000 thousand barrels per day, and by 2025 up to 1 600 thousand barrels per day.

The energy sector strategy is based on estimates that Russia’s oil production will reach 530 to 535 million tons by the year 2030. The production of gas is expected to be from 880 to 940 billion cubic meters. Electricity generation is anticipated to reach 1.8 to 2.2 trillion kilowatt hours.

The Russian banking system weathered the storms of the international financial crisis with relatively few major issues. Now that the global financial markets begin to calm down, a new problem may soon arise: a crisis brought about by forces in the domestic economy.

The prices of oil have increased significantly during the recent months, making the problems associated with Russia’s budgetary shortfall less acute. In May of 2009, the price of Urals crude oil reached USD 55 per barrel, surpassing the mean price of USD 45 for the period of January to April.  

A recent report by the European Bank of Reconstruction and Development (EBRD) notes that the impact of the global economic crisis on the emerging economies in Europe and Central Asia will be dramatic. On average the EBRD estimates that these emerging economies will contract by about 5.2 percent in the current year.

With demands for electricity in Russia declining as a result of the economic crisis, the power companies are requesting the government to stop state-supported industry expansion plans. Holding off on expansion now will be conducive to maintaining the viability of broad reforms in the economic sector as a whole.

The Minister of Agriculture of Russia Yelena Skrynnik noted that the government has completed its interventions in grain production for the 2008 harvest. The money paid by the government supported farmers, stabilized prices, and created a strong economic foundation for the sowing and harvesting operations, according to Ms. Skrynnik.

The country’s top cellular phone service carriers were finally given the necessary airwave frequencies to run 3G commercial operations in Moscow and the Moscow oblast. Currently, 3G reception is limited to indoor users.

Geological studies suggest that the country of Ukraine has close to 1 trillion cubic meters of natural gas reserves. Significant reserves of coal have also been discovered in the country. Because domestic production remains very limited, Ukraine continues to be heavily dependent on other countries for its energy needs.

The impact of the crisis worldwide is proving far deeper and broader than previously thought.The impact on Russia has been accentuated by its structural vulnerabilities: dependence on the oil and gas sector, a narrow industrial base, and limited small and medium-size enterprise sector.

The Russian economy has grown steadily over the last six years, illustrated by a 7% average annual GDP growth rate. The country needs a well-educated population to contribute to its success and global competitiveness. The Russian Far East, the easternmost area of the country, is rich in natural resources.

The rail system represents the lifelines for the RFE southern territories, and especially, Primorsky and Khabarovsky krais, Amurskaya oblast, Jewish autonomous okrug, Sakhalin island, and Southern Sakha (Yakutia). RFE railroads carry about 83% of the region’s freight.

The Russian oil and gas industry is a strategic sector of the Russian economy and accounts for 61% of Russian exports. The industry has demonstrated strong performance in the last several months and is concentrated on about a dozen development projects. 

Until recently, one of the important issues to be considered by the parties to a transaction of acquisition of stock or ownership interest in a Russian company was compliance with Russian currency- control legislation. Russian currency-control law used to impose various restrictions on payments in roubles.