Russia is a very rich country in terms of natural resources, particularly oil and gas. It is world’s ninth largest economy in terms of nominal GDP and sixth largest by Purchasing Power Parity (PPP).
Economy by Sector
Sector % of GDP
Service 62
Industry 32
Agriculture 5
Russia has low official unemployment rate of 4%. Its foreign exchange reserves are the world’s fifth largest worth US$ 540 billion. It has world’s fifth largest labour force of 70 million. It is world’s tenth largest exporter and 21st largest importer. Oil and Gas related revenue accounts 45% of Russia’s federal budget revenue in 2022 and up to 60% of its exports in 2019. Russia has one of the lowest levels of external debt among developed countries.
The economy of Russia has gradually transformed from a planned economy into a mixed market-oriented economy. Russia’s vast geography is an important determinant of its economic activities with the country holding a large share of the world’s natural resources. It has been widely described an energy super power. It has the world’s largest natural gas reserves, second largest coal reserves the eighth largest oil reserves and the largest reserves in Europe. It is the second largest oil exporter and producer. Russia is the world’s second arms exporter. Russia has also the world’s fifth largest number of billionaires.
Economic Statistics
GDP Nominal: US$ 2,063 billion 2023
GDP (PPP): US$ 4,989 billion 2023
GDP per Capita: $ 14, 404 nominal 2023
: 34,837 PPP 2023
World Rank : 67th Nominal and 60th PPP 2023
GDP Growth
Year Growth %
2022 2.1
2023 0.7
2024 (Estimated) 1.3
Russia supplies significant volume of fossil fuels to other European countries. In 2021, it was the largest exporter of oil and natural gas to the European Union 90% and 40% of gas consumed in European union came from Russia. Although after Ukraine war USA and European countries and their allies-imposed sanctions on it, EU still depend largely on Russian oil and Gas.
The mineral industry of Russia is one of the world’s leading mineral industries and accounts for a large percentage of common wealth of independent states production of a range of a mineral product, including metals, industrial minerals. Russia is also a leading producer and exporter of minerals and gold. Russia is the largest diamond producing country of the world estimated to produce over 33 million carats, or 20% of global output valued at US$ 3.4 billion with state owned ALROSA accounting for approximately 95% of Russian production. ALROSA is a Russian group of companies that specializes in exploration mining, manufacture, and sales of diamonds. The company leads the world in diamonds mining by volume. Mining takes place in western Yakutia, the Arkhangelsk region, and Afria. In 2019 it was the third largest producer of gold, 2nd largest producer of platinum, 4th largest producer of silver, 9th largest producer of copper, 3rd largest producer of nickel, sixth largest producer of lead, 9th largest producer of bauxite, 10th largest producer of zinc, 2nd largest producer of gypsum, 10th largest producer of salt, sixth largest producer of uranium, which gives it a significant place in the world.
Russia has the world’s third largest cultivated area of 1.26 million sq km. It is world’s largest exporter of wheat, largest producer of barley, buckwheat, oats, rye, and second largest of sunflower seeds. It maintains world’s largest fishing fleet, 6th largest in the world. In 2018-19 it caught 4.77 million tons of fish in 2018. The defence Industry of Russia is also very important and contributing a good share in its economy.
Gazprom and Novatek are Russia’s main gas producers. In 2019, Russia launched major eastward gas export pipeline 3,000 km long, in order to send gas from far east field directly to China. In 2021, it exported 40 bcm of LNG, making it the world’s 4th largest LNG exporter accounting 8% of global LNG supply.
United Nation’s Human Development Index (HDI) which assess programme in the standard of living, health and education, ranks Russia among the very high human development countries. The United Nation’s Human Development Programme (UNDP) , Human Development Index (HDI) measures countries wellbeing improvements in three dimensions a decent standard of living ( gross national income per capita ) a long and healthy life ( life expecting ) and Knowledge ( Education) . In 2000 it was considered a country with medium human development, ranked 62nd out of 173 countries (HDI 2002) since than it made steady progress in all three dimensions. In 2019 it ranked 52nd out of 189 countries, and ranks among 66 countries with a very high human development.
Russia provides free health and education services to its citizens. Its economic policy is pragmatic and its economic development is astonishing. There is a need to provide first hand information and knowledge to Pakistani students in universities and institutes and create awareness among them. There is a need to send Pakistani students to Russian Universities to get hands on quality education and learning state of the art technology. Pakistan needs Russian support to overcome its energy crisis. With the passage of time Pakistan Russia friendship will increase.