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1. Russia –Potential
Export from Russia – a challenge

2. Introduction
• Russian Exports includes Russia, Belarus, Ukraine,
Georgia, and Armenia (all were part of the U.S.S.R.)
• Russia is the largest country (in land area) on Earth; it was
spans 11 time zones
– Rich in resources, but has one of the harshest climates
• The Russian Industry has had extremely rapid political and
economic change since 1990
• Exports s are substantial contributors to national
economies through employment generation and
contribution
• to GDP. The role of Exports , including those operating in
the informal economy, in employment creation
• approximately 45%-60% of GDP regardless of the
development stage of the economy.
Globalization & Diversity: Rowntree, 2
Lewis, Price, Wyckoff

3. Agricultural Regions (Fig. 9.5)
Agricultural Triangle
(Developed Triangle)
Globalization & Diversity: Rowntree, 3
Lewis, Price, Wyckoff

4. Environmental Geography: A Vast and Challenging Land (cont.)
• The Russian Far East
– Near Vladivostok, about same latitude as New England (in N. America)
– Longer growing seasons and milder climates than Siberia, seismically
active
– Ussuri and Amur River Valleys have mixed crop and livestock farming
– Vegetation includes conifers, taiga, Asian hardwoods
• The Caucasus and Transcaucasia
– In extreme south of European Russia, forms Russia’s southern
boundary, between the Black and Caspian seas
– Highest peak is Mt. Elbrus (18,000 feet)
– Georgia and Armenia are in Transcaucasia; Lesser Caucasus Mountains
form border between Armenia and Azerbaijan
– Climate: high rainfall in west, arid or semi-arid in east; good soils and
farming
Globalization & Diversity: Rowntree, 4
Lewis, Price, Wyckoff

5. Population Density
Globalization & Diversity: Rowntree, 5
Lewis, Price, Wyckoff

6. – Soviet industry more successful than agriculture
• Soviets added major industrial zones (Fig. 9.31), many
near energy sources and metals
• Moscow had fewer raw materials, but had some of
Russia’s best infrastructure, large pool of skilled labor,
and demand for industrial products
– Soviets developed a good transportation and
communication infrastructure
– Soviets had a massive housing campaign in the
1960s
– Soviets made literacy virtually universal, and
health care readily available; eliminated the worst
of the poverty
Globalization & Diversity: Rowntree, 6
Lewis, Price, Wyckoff

7. Russian Export Breakdown by Product, 2011
• Code Commodity group
• 3310 Crude and partially refined oil 96675 41.8 41.8
• 3411 Natural gas 43228 18.7 60.4
• 6841 Aluminum and its alloys, unprocessed 6412 2.8 63.2
• 6831 Nickel and its alloys, unprocessed 5906 2.6 65.7
• 6725 Iron balls, billets, slabs etc. 5421 2.3 68.1
• 3214 Coal (antracite, bitumen) 4341 1.9 70.0
• 6822 Nickel and its alloys, processed 2801 1.2 71.2
• 2422 Bolt timber, scale wood 2520 1.1 72.3
• 2432 Sawn logs, unhewn timber 2265 1.0 73.2
• 6727 Rolled steel and iron for the rerolling 2245 1.0 74.2
• 2820 Iron and steel scrap 2031 0.9 75.1
• 6672 Raw diamonds, not technical 1718 0.7 75.8
• 6821 Copper and its alloys, unworked 1671 0.7 76.5
• 5611 Nitrogen-containing fertilizers 1510 0.7 77.2
• 6712 Pig Iron 1456 0.6 77.8
• 410 Wheat, whole 1368 0.6 78.4
• 5619 Fertilizers 1364 0.6 79.0
• 6742 Steel and iron sheets (thickness 3–475 mm) 1316 0.6 79.6
• 6743 Steel and iron sheets (thickness less 3 mm) 1306 0.6 80.1
• Fig. 2. nations competing in international trade and investment
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8. • The Post-Soviet Economy
• The region has replaced its communist system with a
mix of state-run operations and private enterprise
– Redefining Regional Economic Ties
• Independent republics negotiate for needed resources
with Russia and each other rather than accept
centralized control
• Russia continues to dominate the region’s economy
– Privatization and Economic Uncertainty
• Russia removed price controls in 1992; sold state-owned
business to private investors in 1993
– Higher prices, lack of legal safeguards created problems
• Agriculture still struggles, in part due to harsh climate,
landforms
• Many people see little economic gain from changes
Globalization & Diversity: Rowntree, 8
Lewis, Price, Wyckoff

9. Major Natural Resources and Industrial Zones (Fig. 9.30)
Globalization & Diversity: Rowntree, 9
Lewis, Price, Wyckoff

10. – The Russian Private Sectors
• Russia Industry Ministry estimates that Russian
private sectors controls 40% of the private
economy & 60% of the state-run enterprises;
80% of banks in Russia may be under mafia
influence
– Protection money, corruption result
• Russian has gone global .
Globalization & Diversity: Rowntree, 10
Lewis, Price, Wyckoff

11. Problems
Infrastructure Road,Rails ,Sea port ,Air
• - weather condition
• Distance factors from Port
• Modernization Logistics costs in different countries of the world and Russia, 2009,
% of GDP
• Germany Japan France U.S.A. Italy India Brazil China Russia
• Sources: Armstrong & Associates Inc., RBC.research
• Logistics outsourcing in Russia (value of cargo transportation, for
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12. • Growing Economic Globalization
– Starting in 1970s, Soviets exported fossil fuels,
imported food; ties now stronger
– A New Day for the Consumer
• Western consumer goods available (e.g., McDonald’s,
Calvin Klein; even some luxury items)
– Attracting Foreign Investment
• Region struggles to attract foreign investment
• Most investment from U.S., western Europe (esp.
Germany, U.K.)
– Fossil fuels, food, telecommunications, consumer
goods
– Foreign investment growing by more than 14%
annually Globalization & Diversity: Rowntree,
Lewis, Price, Wyckoff
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13. – Globalization and Russia’s Petroleum Economy
• Russia has 35% of the world’s natural gas reserves
– Mostly in Siberia
– World’s largest gas exporter
• Primary destination for Russian petroleum products is
western Europe
– Former U.S.S.R. republics depend on Russia’s energy
– Foreign investment in new pipelines, other technology
– Local impacts of globalization
• Vary from place to place
– Investment in Moscow, Siberia (oil)
– Pro-business Nizhny Novgorod and Samara attract investment
– Local economic declines in older, uncompetitive industrial areas
Globalization & Diversity: Rowntree, 13
Lewis, Price, Wyckoff

14. Conclusions
• Russian Export has seen great change, from empire,
through revolution and break-up
• Ethnic & cultural differences continue to shape the region
• Russian is rich in natural resources, but has limited
agricultural potential and lingering economic difficulties
• Massive readjustments growing from the political and
economic upheavals of the 1990s continue to affect the
area
• Environmental devastation in the region and its effects
continue to cause social and health problems
• More uncertainty lies ahead for the people of the Russian
Domain.
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