Russia: resources giant in a state of flux

摘要

IN SPITE of slightly slower economic growth, most metals and mining companies did quite well in -i 2004, mainly because of the unusually high prices ~1 for most metals. Russia's economy grew by 7.1 percent in J 2004, a slightly higher rate than in 2003. Industrial production rose by 6,1 percent versus 7.0 percent in the preceding year, but there are forecasts that industrial production could dip to 4.5-4.7 percent in 2005. The draft federal budget for 2006 estimates GDP growth of 5.9 percent, inflation at 7.8 percent and a rouble exchange rate of Rb27.2/US dollars. The collapse of the Soviet Union, trade liberalisation and the application of market-economy principles to mining led to a massive fall in production in the early years of capitalist Russia. Much of the vertically-integrated infrastructure, however, has survived, even under today's new management. Excluding coal, there are about 600 substantial mining operations in Russia, of which about 370 are in European Russia (including the Urals region).The bar graph opposite (based on 2003 data) demonstrates the high degree of concentration within the mining industry.