Russian Federation

General Information

Domestic policies

Russian economy

Relations between Russia and Germany

Infrastructure

General Information

Official language: Russian, plus several regional and minority languages
Capital: Moscow
Form of goverment: semipresidential republic, federation
Chief of State: President Vladimir Putin
Head of government: Premier Michai Fradkov
Area: 17’075’400 km²
Population: 142’400’000

The Russian Federation (Russia) is the world’s largest country in terms of area. It covers appr. 11.4% of world’s total surface, reaching from Moscow in the west to the Pacific Ocean in the east. The Ural Mountains as well as the Siberian steppe belong to Russia, too. Russia borders to Finland, Estonia, Latvia, Lithuania, Belarus, Ukraine, Georgia, Azerbaidchan, Kazachstan, Mongolia, North Korea, and China. Western of Ural Mountains, plains and hills dominate the landscape. On the eastern side, steppe and tundra dominate. Large parts of the Asian Russia are covered with woods. Most of the country’s southern part is dominated by highlands and mountains. “Elbrus”is Russias highest mointain (5’642m).

European part of Russia ranges from the Northern Polar Sea down to the Black Sea, Caucasus Mountains and th Caspian Sea. However, the Asian part of the Russian Federation is by far larger.

Among the most relevant mountains of Russia are Altai, Baikal Mountains, Caucasus, Kolyma Mountains, Putorana Maountains, Sayan Mountains, Stanovoy Mountains, Stanovoy Heights, Tannu Ola Mountains, Chersky Mountains, Ural Mountains, and Verhoyansk Mountains.

Russias major river is the “Volga”. It is at the same time Europe’s longest river, running through Russian territory, only. It ranks among the most important shipping routes, connecting Northern Europe to Central Asia.

Climate ranges from steppes in the south through humid continental in much of European Russia; subarctic in Siberia to tundra climate in the polar north; winters vary from cool along Black Sea coast to frigid in Siberia; summers vary from warm in the steppes to cool along Arctic coast.

Russias major 10 cities are:
Moscow (population 10,1m)
St. Petersburg (4,58m)
Nowosibirsk (1,42m)
Nishny Novgorod (1,35m)
Yekaterinburg (1,26m)
Samara (1,16m)
Omsk (1,15m)
Kasan (1,11m)
Chelyabinsk (1,07m)
Ufa (1,04m)

Russia is administratively divided into 21 republics, 49 “areas” (oblastey) and 7 districts. Furthermore, two federal cities and 10 autonomous entities (“okrug”) exist.

Russia must be described as an multiethnic state. Whereas Russians form the huge majority (80% of population), some 100 nations reside on Russian territory (4% are Tatars, 2.2% Ukrainians, 1.9% Armenians, and 0.8% Germans, among others).

During last years, Russia witnessed a considerable drop of its population, by estimated 670’000 persons anually. However, it remains among the most relevant immigration countries. Some 80% of Russian reside in Western and Southern Russia.

Since the Soviet Union’s break-up, the importance of relegion in daily life increased significantly. Some 75m people are estimated to be Russian Orthodox, whereas Christians and Muslims form the larger minorities.

Domestic policies

Chief of State
Vladimir Putin was elected as the Chief of State in the presidential elections in 2000. His powers are regulated in the Russian constitution. Due to this, he sets up the princeples of Russian domestic and foreign policies, is the supreme commander of the armed forces, and accounts for the function of the major authorities and their co-operation.

Parliament
Russian Parliament is named “Federal Assembly” and consists of two chambers:
- The Federal Council
- The “Duma”
The Duma is the highest legislative entity in the Russian Federation. It’s adopted acts need confirmation by the Federal Council, in some fields. The president is authorized to enact decrees, as well. These decrees, however, can be cancelled by respective acts.

Government
The highest entity of the Russian government is called “Ministers’ Council”. Presently, it is headed by Premier Michail Fradkov. Among others, Secretary of State Lavrov, Secretary of Defence Ivanov, Secretary of the Interior Safanof and Minister of Justice are members.

Judicature
Russian judicature roughly distinguishes between general judicature and commercial judicature. General judicature itself defines local competences of courts, as well as such by the subject. The Supreme Court is the highest entity of general judicature. “Arbitrage Courts” decide on commercial lawsuits, with the “Supreme Arbitrage Courts” beeing the highest entity.
Moreover, the constitutional judicature (through it’s entity, the “Constitutional Court”) decides on the constitutionality of acts and decrees.
Arbitration courts exist in Russia beside public judicature. Disputes between Russian and foreign entities can be negotiated at international arbtitration courts.

Foreign policies
Due to it’s geographical position, Russia regards itself as intermediary between Asian and European interests. Economic ties between Russia and the EU are already strong and permanently strengthened, particularly based on the delivery of oil and gas.

Russia is striving for entry into the WTO, which is about to take place in 2007 or 2008. It is as well the leading CIS country and in the process of establishing a free trade agreement with Kazachstan.

Russia is member of the following organziations and associations:

APEC, Arctic Council, ARF, ASEAN, BIS, BSEC, CBSS, CE, CERN (observer), CIS, EAEC, EAPC, EBRD, G- 8, GCTU, IAEA, IBRD, ICAO, ICC, ICCt, ICRM, IDA, IFC, IFRCS, IHO, ILO, IMF, IMO, Interpol, IOC, IOM (observer), IPU, ISO, ITU, ITUC, LAIA (observer), MIGA, MINURSO, MONUC, NAM (guest), NSG, OAS (observer), OIC (observer), ONUB, OPCW, OSCE, Paris Club, PCA, PFP, SCO, UN, UN Sicherheitsrat, UNCTAD, UNESCO, UNHCR, UNIDO, UNITAR, UNMEE, UNMIL, UNMIS, UNMOVIC, UNOCI, UNOMIG, UNTSO, UNWTO, UPU, WCO, WFTU, WHO, WIPO, WMO, ZC.

Russian economy

Several mineral resources can be found in the Russian Federation in a huge amount, provoking a correspondingly developed heavy industry. Agriculture, as well, still plays a considerable role in Russian economy. GDP is generated by the services sector primarly (58%), followed by the production sector (36%), and the agriculture and mining sector (6%).

Most important commodities are:

- crop, potatoes, vegetables, sugar beets, wood
- natural gas, petroleum, coal, iron ore, several non-ferrous metals
- diamonds, uranium

GDP (PPP) 2006: US$ 1’723 billion
GDP (PPP) per capita 2006: US$ 12’100

Average per capita income was at US$ 242/month in 2005. Unemployment rate is at 6,6% and decreasing due to the dynamic development of particularly the domestic demand for goods and services. The services sector presently offers the best employment opportunities. The industry sector primarly demands well educated and profoundly specialized workforce. The gradual population decrease in Russia leads to even stronger demand for employees, as production amounts grow continously.

The “Rubel” is the Russian currency, devided into 100 “kopeks”. The Rubel was declared to be feely convertible by presedential decree in 2006 – however, it remains somewhat fixed to the development of an “artificial” reference that is influenced by defined ratios of € and US$ exchange rates.

At present exchange rates, 1 US$ is valued appr. 27 Rubels and 1 € costs appr. 35 Rubels.

Most important trade partners of Russia are the Netherlands, Germany, Belarus, Ukraine, China, Italy, and Turkey.

Aggregate value of exports in 2006 was US$ 317.6 billion, whereas imports amounted to US$ 171,1 billion.

Relations between Russia and Germany

Trade relations between both countries are improving permanently, in terms of trade volumes as well as of the variety of goods and services. Still, main Russian exports are mineral resources and fossil fuels, whereas Germany’s export focus on consumer goods and machinery. 16% of total German export volume are electonic machines and devices, 12% are vehicles, and 10% are chemical goods. Moreover, processed food, optical devices and fine mechanical goods are among the most relevant German exports.

One can clearly notice not only permanent growth of Russian-German trade volumes, but also the increasing involvement of mid-cap companies, whereas recent years’ trade was predominated by large-cap companies – particularly by leading players in the consumer goods and food retail industry.

Infrastructure

Railways
Railways have been Russia’s most important means of transportation for many years. 40% of the country’s cargo is moved via railways. This applies particularly to mineral resources, iron, steal, and other commodities. The railways network’s total length is appr. 115’000 km, though only one third of which is electrified. The networks’ hub is Moscow – 11 major routes start here. In Siberia two major railway lines connecting the east to the west: the Transsiberian Railways and the Baikal-Amur-Railways.

Road traffic
Roads carry some 17% of Russias cargo traffic, making it far less relevant than railways. Total length of the Russian road network is appr. 900’000 km. Considerable parts of it, however, are not paved and therefore hardly usable when weather conditions are bad. In cetral Russia the network is particularly narrow, whereas in eastern Russia paved roads are scarce. Freezed up rivers are frequently used as roads for cars and trucks in Siberia. The number of cars in Russia is rapidly growing.

Merchant navy
Most important Russian seaports are located in St. Petersburg, Kaliningrad, Vladivostok, Murmansk, and Novosibirsk. Inland waterway transportation utilizes a network of canals and rivers with an appr. total lenght of 100’000 km. Waterway transportation has particular relevace in the country’s east, in Siberia. Here, the huge rivers are main transportation routes, connecting northern seaports with the railway system in the south.

Air traffic
Russian airlines’ market leader is AEROFLOT. 51% of it’s shares are owned by the Russian state. More than 300 competitors exist, whereas 70% of passengers’ traffic is handled by the 20 major airlines. Due to Russia’s extension, air traffic – as well – plays an important role in the coutry’s traffic system.

Pipeline network
An Extensive pipeline network has been constructed to transfer both kerosene and natural gas. Kerosene pipelines sum up to a total lenght of presently 65’000 km, the natural gas pipeline network has a total length of 150’000 km. The stae-owned company TRANSNEFT operates the kerosene pipeline network, GAZPROM controls the gas pipeline network. Major gas pipelines are the black sea-crossing pipeline “Blue Stream” and the baltic pipeline system.