Russian's resources
Overview of the mining industry in Russia
Summary: Russia is one of the countries with the richest raw material deposits. Aside from the energy resources oil, natural gas and coal, Russia possesses such important mineral resources as iron ore, nickel, copper, metals of the platinum group, gold and diamonds.
In 2009, oil production increased slightly by 1.5 %, while the production rates of gas and coal decreased by 12.2 % and 8.5 % respectively compared to the preceding year. All in all, the country‘s output of mineral resources decreased by 1.2 % as a result of the worldwide economic crisis. However, the market is currently again showing a distinct upswing with a growth rate of 5.8 % in the first half of 2010. Oil, gas and coal account for over 70 % of Russia‘s exports, which underlines the degree to which the country‘s economy and national revenue are dependent on the raw materials markets. This report presents an overview of Russia‘s mining industry, describes the significance of the most important sectors and provides information about the biggest mining companies.
1 Economic development and raw material exportation
Russia‘s economic development is strongly dependent on its mineral resources and on raw materials prices. In 2009 its economic performance declined by 7.9 % while its nominal gross domestic product (GDP) sank from US$ bn 1660 to 1230 (Fig. 1). The country‘s budget deficit reached a percentage share of minus 5.9 % in the GDP. This was not primarily due to Russian economic stimulus packages aimed at cushioning the impact of the global economic crisis, but was a result of the simultaneous slump in oil prices. It can be assumed that a 1 US$/barrel...
