RUSSIA'S ECONOMY

RUSSIA'S ECONOMY

Russia was the most populous state of the former USSR, and also the wealthiest one. It produced 78 per cent of all its natural gas, 60 per cent of steel, 80 per cent of timber, and 91 per cent of oil. It also has one of the world's largest fishing industries.

Russia has greatest supplies of almost every mineral used in modern industry. The country has about a fourth of the world's coal deposits, and huge reserves of oil and natural gas. Vast amounts of iron ore are located in the Ural Mountains. Chromium and nickel are also found throughout the Urals. Tin is the only important mineral not found in quantities large enough for the nation's needs.

The history of Russian industry goes back to the 1600's. The development of new industries and crafts - metal working, textiles, brick making, and china manufacture - was encouraged under Peter the Great. During the reign of Catherine the Great, the Urals became the focus for iron industry, and Russia became the world's largest iron producer.

After 1870, the fast railway engineering in Russia was stimulated by industrial boom. Some deals were made with western companies to develop Russia 's immense oil resources. By 1903, Russia had been the world's largest oil producer.

Before the Revolution, Russia was one of the world's largest grain producers and exporters. But lately Russia became one of its biggest importers, as a result of collectivization and mismanagement of agriculture.

In Soviet times, central planning system was inefficient as regards both production and distribution of goods. By 1980,

the quality gap between home and western products could no longer be ignored and called for reforms. Entering the world : market demands from Russian economists the creation of effective management in industry and agriculture.

The Moscow area is the leading manufacturing center in Russia. Its factories produce chiefly automobiles, buses, and trucks. Other products made in Moscow include chemicals, electrical and electronic equipment, processed foods, steel, and textiles. Ships are built, and many kinds of industrial equipment are produced in the St. Petersburg area. Metal processing and machinery production are important in the Urals. Oil is refined chiefly in the Volga - Urals oil fields. Lumber and pa­per mills operate in many parts of the country. Many new industries are being developed in Siberia to make use of the region's mineral and hydroelectric resources.

Russia has more farmland than any other country. Barley, rye, and wheat are the main grain crops. Potatoes, an important part of Russian diet, are grown throughout the country. 1 Farmers along the Black Sea coast grow tea plants. Russia also leads all countries in the production of fiber, flax, oats, and sugar beets. Other important crops in Russia include corn, fruits, tobacco, and vegetables.

Livestock production is the weakest part of Russia's agriculture.

Until its industry can be modernized, Russia will remain dependent on the energy sector. Before 1986 it was planned that an expanded nuclear program could help the conservation of other energy resources. But after the Chernobyl disaster, these plans were sharply curtailed.

However, disposal of nuclear waste and closing down of old power plants remain major problems not only for Russia , but for other industrial countries as well.

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