Investing in Russia's Rich Natural Resources and Growing Market

Russia's abundant natural resources, including oil, gas, timber, minerals, and coal, make it an attractive destination for investment. The country has the largest market in Europe with a population of over 150 million people. Russia's GDP growth is predicted to be over 4 percent in the next five years, and the country ranks third in the top profit markets of the world. The equity returns in Russia in sectors like metals, transportation, and chemicals have exceeded those of Europe by roughly 70 percent. The country also has a low unemployment rate and a highly educated and skilled workforce.

Running head: RUSSIA INVESTMENT
RUSSIA INVESTMENT
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Russia is rich in oil, gas timber, minerals and coal. The country possesses more than
20 percent of the reserves of national resources in the world. His is the main reason why the
country is among the top industrialized countries. The natural resources which the Russian
economy uses, accounts for almost 95 percent of national wealth. Russia ranks first in the
world’s gas reserves and second in oil production and third in coal reserve (Kuzmina,
Volchkova and Zueva 2014). In production of iron ores, this country takes the first place. In
addition to this, the country has occupied the leading position in the wood provision of the
world (Fischer 2016). Russia is also among the top producers of gold. In the European part of
the country there are five major gas and oil producing provinces. There are great variety of
both metallic as well as non-metallic ore which are used extensively in the industry so the
country.
Russia is the largest market in Europe with more than 150 million people. the
demographic change in the country have changed in last ten years greatly and if this trend
continues the country will have a population living longer than the average American male.
The country has been pulling away in terms of growth from the continental Europe in GDP.
The data has revealed that in next five years the GDP growth in the Eurozone will be
approximately 1 percent and America 2.3 percent (Kuzmina, Volchkova and Zueva 2014).
On the contrary the GDP growth of Russia has been predicted to be more than 4 percent. In
the GDP slowdown in the year 2012, Russia managed much better than the BRICS and its per
capita GDP was better than that of India and China.
Russian markets rank third in the top profit markets of the world. This is because the
Russian customers are much concerned about the quality and are ready to pay for it. The
equity returns in Russia in the sectors like metals, transportation and chemicals had exceeded
those of Europe by roughly 70 percent (Kuzmina, Volchkova and Zueva 2014). This country
is special attraction of the automobile companies as it is the second largest automotive market

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in all over Europe. Due to high population this country has become a great place for
investment for the mobile phone companies with market saturation of approximately 250
million users each year (Kolupaev et al. 2015).
The annual household income the country is much developed where 55 out of
hundred households are middle class. The country ranks lowest in household debt index in
the world with 8 percent GDP and the government is also low, only 7 percent. Russia
possesses third largest hard currency reserves in world (Bayev and Solovyova 2014). The
unemployment rate of this country is also low and holds educated and skilled human
resources. In this country the companies can grow almost 20 percent in a year which no
national can provide. Russia will be the largest consumer products market in Europe in 2024.

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References:
Bayev, I.A. and Solovyova, I.A., 2014. Empirical analysis of the relationship of investment
and innovative activity of regions of Russia. Economy of Region/Ekonomika Regiona, 37(1).
Fischer, P., 2016. Foreign direct investment in Russia: A strategy for industrial recovery.
Springer.
Kolupaev, R.V., Rogacheva, L.I., Moskalenko, A.V., Ulrikh, I.V. and Mikhailova, T.A.,
2015. Special considerations of the financial investment in Russia. Asian Social
Science, 11(7), p.297.
Kuzmina, O., Volchkova, N. and Zueva, T., 2014. Foreign direct investment and governance
quality in Russia. Journal of Comparative Economics, 42(4), pp.874-891.