**COUNTRY COMMERCIAL GUIDE--RUSSIANFEDERATION**

**FISCAL YEAR  2000**

 

****

**X.  ECONOMIC AND TRADE STATISTICS**

 

## APPENDIX  A:  COUNTRY DATA

                          

Population:    --147.6 million (1998 growth:-.5 percent)

Religions:         RussianOrthodox, Muslim, Jewish, Buddhist, Catholic, Protestant, other.

Government:       --Federal,comprised of 89 Republics, Oblasts (regions), Territories and Autonomous Areas.

Languages:         --Russian (official), plus over 140 other                    languages and dialects

WorkWeek:     --40 hours.

 

## APPENDIX B: DOMESTIC ECONOMY 

 

                                                                                          1997                     1998                     1999

 

GDP (billions of rubles)                                             2522                     2685                        4000

Real GDP growth rate (%)                                              0.4                         -4.4                       -3to -5

GDP Per Capita (rubles)                                               1835                     1825                     2721

Government Spending (%GDP)               113         83         14

Inflation (average annual, in %)                                      11.1                      184                       35

Unemployment (%)                                                         9.6                         11.8                      14.1

Foreign Exchange Reserves ($ bln)                              17.8                      12.2                      n/a

Average Exchange Rate (rubles/$)                                  5.78                      9.97                      24.5

Foreign Debt ($ billions)                                          153.6                    164.3                    162.3

Debt Service Ratio                                    10.1                     14.9                      n/a

 

## APPENDIX C: TRADE

 

($ billions)                                                        1997                     1998                     1999

 

Total Country Exports                                88.4                      73.9                      83.4

Total Country Imports                                73.6                      59.5                      49.1

U.S. Exports to Russia                                  3.3                        3.6                        3.0

U.S. Imports from Russia                        4.3                        5.7                        5.1

 

\1 – Source (Appendices A, B, C): Russian State StatisticsCommittee (GOSKOMSTAT).  Totaltrade data supplied by Russian State Customs Committee.  U.S.-Russia trade data supplied fromU.S. Department of Commerce, Bureau of the Census.

 

\2 – 1999 figures are projected.

                            

## APPENDIX D:  FOREIGN INVESTMENT STATISTICS

** **

**TABLE I:  TOP TEN INVESTORS ON ANNUAL BASIS (USD MILLION**)

 

                        1997                   1998

                    ------------------     -----------------

                  TOTAL \3   DIRECT      TOTAL \3   DIRECT  

                  -------    ------     -------    ------

TOTAL           12,296           3,900      11,773     3,361   

GERMANY                1,647        228       2,848        328

USA                   2,996           2,099       2,238     1,170

BRITAIN                2,411        340       1,546        205

FRANCE              209           203        1,591        15

CYPRUS              992        n/a            917        403 

NETHERLANDS          540           340          877        610

SWITZERLAND            1,756        104          411        40

LUXEMBOURG           --            --          228          3

FINLAND              --            --          185        141

SWEDEN               72            --          146         70 

SOURCE: GOSKOMSTAT AND MINISTRY OF ECONOMY

 

\3 TOTALS INCLUDE DIRECT, PORTFOLIO, AND OTHER INVESTMENT.

 

 

 

Table I showsa decline in total investment between 1997 and 1998, from $12.3 billion to$11.8 billion.  Foreign directinvestment (FDI) declined by 37 percent decline to $3.36 billion in 1998,according to Ministry of Economy data. Balance of payments figures show a larger drop in FDI of two-thirds,from $6.5 billion to $2.2 billion in 1998.  Note: Russian balance of payments data are believed toinclude investment in bank equity and foreign direct investment that is lessthan 10 percent of a company’s capital; this resulted in much higher figures in1997 and lower figures in 1998 for foreign direct investment.  A large part of the portfolio and otherforeign investment, according to Russian government analysts, went intogovernment securities.  Thiscategory also contains long-term, as well as short-term loans.

 

**TABLE II:  TOP INVESTORS - ACCUMULATED BASIS (USD MILLION)******

** **

                       1997            JAN-SEPT 1998 

                  -----------------    -----------------

                 PERCENT   MILLION    PERCENT   MILLION

                 -------   -------    -------   -------

TOTAL            100.0    21,800    100.0    27,219 

USA               28.6     6,228     17.7    4,783 

BRITAIN            16.7      3,639       7.9     2,146

SWITZERLAND        15.4      3,359       2.3       208

GERMANY           11.6     2,536     31.8    8,652

CYPRUS             3.3        728       9.2     2,516 

ITALY              2.8        605       7.6     2,070

FRANCE             1.9        408      12.2     3,331

SWEDEN             1.8        390       1.5       413

 

SOURCE: GOSKOMSTAT AND MINISTRY OF ECONOMY

 

Figures inTable II can only be taken as a general indication of activity identified witha given country.  They do notrepresent accumulated stock of investment because they include portfolio and“other” investment and do not reflect any withdrawal of funds or decreases invalue of assets.  Economy Ministryanalysts identify direct investment as $3.9 billion in 1997.  Comparable data is not yet availablefor 1998.

 

**TABLE III: FOREIGN INVESTMENT - TOPREGIONS (USD MILLION)**

** **

               1997\4              1998

              -----------------    -----------------    

              PERCENT  MILLION   PERCENT   MILLION 

             -------   -------    -------   -------

TOTAL        100.0     10,500     100.0    11,773   

MOSCOW(CITY)  67.4     7,077     49.8    5,860

MOSCOW REGION  n/a        n/a       6.0       709

TATARSTAN       6.7        698       5.8       684

OMSK           3.5        365       3.8       452

PETERSBURG      1.6       171      3.5      413

YAKUTIA          --        --      1.7      197

SAMARA          --         --       1.6       193

TYUMEN          1.9        195      1.5       182

 

\4 Ministry of Economy data by sector and region in 1997were calculated using a smaller figure for total foreign investment of $10.5billion.

 

Table IIIshows annual investment for 1997 and 1998 by region.  Clearly, Moscow and Moscow Oblast got the lion’s share inboth years, but the large share of portfolio investment could be expected tofavor Moscow, where most banks and investment companies are centered. 

 

**TABLE IV:  FOREIGN INVESTMENT - TOP SECTORS (USD MILLION)**

                  1997\4               1998

                  -----------------    ----------------- 

            PERCENT   MILLION     PERCENT   MILLION 

                 -------   -------     -------   -------

TOTAL            100.0    10,500     100.0   11,773   

FUEL INDUSTRY      15.8      1,657       15.9    1,880

FOOD INDUSTRY       6.2        646       12.5    1,426

COMMERCIAL ACTIV-

 ITY SUPPORTING

 THE FUNCTIONING

 OF THE MARKET\5  16.3      1,712       12.1    1,426

TRADE/CATERING      4.8        509       10.2    1,201

FINANCE/CREDIT     42.1      4,416        7.6      900

CHEMICAL/PETROCHEM. N/A        N/A       4.6     546

TRANSPORT/COMMUNIC. 1.7        178       5.0     589

LUMBER INDUSTRY     1.3        134        2.0      240 

COMMUNICATIONS      1.2        145       2.3     271 

 

\4 Ministry of Economy data by sector and region for 1997were calculated using a smaller figure for total foreign investment of $10.5billion.

  

\5 This category includes, among others, investment,  consulting, advertising, and marketingcompanies.  For 1998, it includesonly advertising and auditing.

 

Table IVshows annual investment by sector. Whereas finance and the ungainly “commercial activity supporting thefunctioning of the market” accounted for close to 60 percent of the total in1997, investment in 1998 was more evenly distributed among sectors, with adramatic decline in investment into the financial sector.