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Text III





Russia’s Foreign Trade.

Through most of the 20th century, Russia’s, or the USSR as it was known for most of that century, trade with the outside world was mostly limited to trade with other members of the Socialist Bloc. It was self-sufficient in energy resources and primary goods. Its manufacturing industry was for domestic consumption only. Foreign consumer goods simply didn’t exist. Investment from abroad was not encouraged because the government wanted full control of production and prices. But things have changed.

The Russia of the 21st century is much more open to business with the rest of the world. In the first six months of 2005, its total international trade turnover was worth about $ 150 billion. Both exports and imports have grown in recent years, but exports are growing more rapidly in value. This is mainly through the sale of oil and gas. In fact, energy resources make up over two thirds of Russia’s exports. The growing price of these commodities on world markets has brought huge amounts of foreign currency into the Russian economy. Metals are also important for the Russian economy. Russia’s steel industry, for example, is one of the world’s biggest. Other primary goods such as timber, minerals and fish are also important.

The value of trade isn’t the only thing that has changed. There have been changes in Russia’s trading partnerships, too. In the old Soviet days, and even in the years that followed the fall of communism, Russia’s main trading partners were other communist countries that used to be known as the COMECON (Council for Mutual Economic Assistance) countries. In the early 1990s, for example, Russia still had trade agreements to export energy resources to many former Soviet republics. As oil prices increased, however, many of these countries found it difficult to pay for Russian oil, and exports fell. At the same time, trade with other parts of the world, especially the European Union began to grow. Communist ties have not all been broken, though. One of Russia’s most important trading partners is China.

But what does the future hold for the economy? The danger for Russia is that it relies very heavily on exports of oil, gas and minerals. Prices for these commodities can change suddenly on the world markets. What does Russia have to fall back on? at the moment, not very much. Its industrial sector is mostly run down and uncompetitive. During the Soviet years, a large part of the country’s industrial strength was used to produce arms. Today, military equipment and weapons are still the biggest manufactured exports from Russia. It has to import almost all other manufactured goods.

Many economists believe that Russia must spend its oil money on investing in capital and infrastructure for industry. Doing this will encourage foreign investment and further economic growth. In turn, this will help to spread the benefits of growth to everyone in Russia, not just a privileged elite.

 

 

 

 

self-sufficient – самостоятельный; автономный; независимый

commodity – товар

to rely on – надеяться, полагаться

uncompetitive – неконкурентоспособный

benefit – преимущество, выгоды, прибыль

 

 

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