Population
With a total population (1996 estimate) of about 148,178,487, Russia
ranks sixth in the world in population, after China, India, the United
States, Indonesia, and Brazil. From 1990 to 1995 Russia's population grew
at a rate of only about 0.2 percent per year. The country is inhabited
by one of the widest varieties of nationalities and ethnic groups in the
world, and many of the country's national groups have their own administrative
territories.
Population Characteristics
The overall population density of Russia is about 9 persons per sq
km (about 22 per sq mi). The population, however, is unevenly distributed
across the country. The population density of a particular area generally
reflects the land's agricultural potential, with localized population centers
occurring at mining and industrial centers. Most of the country's people
are concentrated in the so-called fertile triangle, which has its base
along the western border between the Baltic and Black seas and tapers eastward
across the southern Urals into southwestern Siberia. Although the majority
of the population remains concentrated in European Russia, the country
experienced substantial eastward migration after World War II (1939-1945),
especially to southern Siberia and the far eastern region of Russia. Such
migration was strongly encouraged by the Soviet government.
Throughout much of rural European Russia the population density averages
about 25 people per sq km (65 per sq mi). The country's heaviest population
densities are in sprawling urbanized areas such as Moscow Oblast. On the
other hand, more than one-third of the country's territory has fewer than
1 person per sq km (about 3 per sq mi). This includes part of northern
European Russia and huge areas of Siberia.
More than 100 nationalities inhabit Russia, making it one of the most
multinational countries in the world. Russians are the predominant nationality.
As of 1991 the non-Russian population constituted only 18 percent of the
total, with the largest minority, the Tatars, comprising only 3.8 percent.
Ukrainians (3 percent) and Chuvash (1.2 percent) are the only other minorities
constituting more than 1 percent of the population. Other minorities include
Belarusians, Germans, Bashkirs, and Jews (considered a nationality in Russia).
The country contains 32 ethnic divisions that are scattered throughout
its territory. (See the Government section of this article.)
Principal Cities
Approximately three-fourths of Russia's population lives in urban
areas. Russia became a country of large cities despite government restrictions
during the Soviet period designed to limit the populations of major urban
centers. Thirteen cities have more than 1 million inhabitants, most of
these in European Russia. The largest city by far is Moscow, the capital.
Saint Petersburg served as the national capital from 1712 to 1918; it is
a leading port and a primary industrial center situated on the Gulf of
Finland. Other major cities include Novosibirsk, the largest city in Siberia;
Nizhniy Novgorod, the largest city on the Volga River and a major automotive
and shipbuilding center; Yekaterinburg, the largest city in the Urals;
and Samara, a commercial center of the middle Volga region and the primary
refining center for the Volga-Urals oil fields.
Other large cities include Omsk, in western Siberia's chief petrochemical
center; Chelyabinsk, in the Ural Mountains; Kazan', capital of the republic
of Tatarstan, located along the middle course of the Volga River; Perm',
a major industrial center in the Kama River region to the west of the Urals;
Ufa, an important petrochemical center in the southern Urals; Rostov-na-Donu,
a commercial, industrial, and transportation center in southern European
Russia on the lower stretch of the Don River; and Volgograd, a center of
machinery production and other industrial activity, on the lower course
of the Volga River.
Language
More than 100 languages are spoken in Russia, and some of the ethnic
republics have declared their own local state languages. The Russian language,
however, is the most commonly spoken in business, government, and education.
Russians speak their native tongue almost exclusively-in 1989 only 4.1
percent of Russians throughout the former USSR could speak another of the
languages of the Soviet Union-while most of the other ethnic groups are
bilingual. Millions of non-Russians have adopted Russian as their mother
tongue. Among the most bilingual are the Ingush people, 80 percent of whom
were also proficient in Russian in 1989. The government of the USSR helped
many smaller ethnic groups develop their own alphabets and vocabularies;
however, through educational policies, it ensured the widespread use of
the Russian language. See Also Slavic Languages; Altaic Languages; Caucasian
Languages; Finno-Ugric Languages; Uralic Languages.
Religion
Religious expression, which was controlled by the Communist Party of
the Soviet Union (CPSU) and strictly discouraged for nearly seven decades,
has unfolded in a myriad of different beliefs, sects, and religious denominations
since the dissolution of the USSR. Missionaries from abroad and other proselytizers
have introduced a wide variety of religious beliefs and new-age philosophies
to Russia. Most of the religious revival has resulted in the resurgence
of traditional religions, particularly Orthodox Christianity, but also
other forms of Christianity, Islam, Buddhism, and Judaism. Muslims and
Buddhists reside in specific areas. Muslims live principally in the ethnic
republics of Chuvashia and Bashkortostan in the middle Volga region and
the republics of Chechnya, Ingushetia, Alania (North Ossetia), Kabardino-Balkaria,
and Dagestan in the north Caucasus. Buddhists live chiefly in the republics
of Buryatia and Tyva (Tuva) on the northern border of Mongolia, and Kalmykia
on the northwest shore of the Caspian Sea. By contrast, Jews and non-Orthodox
Christians are dispersed throughout the country.
Russian Orthodox Christianity (see Orthodox Church), adopted by the
Eastern Slavs from the neighboring Byzantine Empire in the 10th century,
is the primary religion in Russia. An estimated 35 million people (about
one fourth of the population) are followers of Russian Orthodoxy. The church
is widely respected by Russian nonbelievers, who see it as a symbol of
Russian heritage and culture. Orthodox holidays are officially observed
by the Russian government, and politicians attend major church festivals.
The church is divided, however, on its role in a post-Soviet society. An
anti-Semitic, highly nationalistic, intolerant faction within the church
is opposed by another faction advocating a more tolerant, ecumenical approach
to worldly affairs.
Education and Cultural Activities
Russian education and cultural institutions, highly constrained and
monitored by the Communist Party of the Soviet Union (CPSU) for nearly
seven decades, were granted much greater liberties under the policy of
glasnost' (openness) of Soviet leader Mikhail Gorbachev (1985-1991). Liberalization
accelerated with the collapse of the CPSU and the dissolution of the USSR.
Ideological training disappeared; new teaching methodologies were developed
and promoted in public schools; private schools were established; and religious
and other previously banned themes of artistic expression flourished. With
the dissolution of the USSR, however, education and cultural institutions
were beset by financial problems, as governmental monetary support dwindled.
Many museums and other cultural centers undertook commercial ventures in
order to increase funds.
Education
Russia inherited a well-developed, comprehensive system of education
from the Soviet period, and most adults in Russia are literate. Soviet
authorities established an extensive network of preschool, elementary,
secondary, and higher-education institutions. It also provided free continuing
education for adults. At the age of six, children in the USSR entered primary
school for an intensive course from grades one to four. Intermediate education
began with grade five and continued through grade nine. After that, children
entered upper-level schools or vocational-technical programs, which included
on-the-job training. In the early 1990s enrollment in primary schools was
11.9 million students, and 9.4 million students attended secondary schools.
The collapse of the Soviet system brought many changes to Russian education.
By 1992 some 300 private schools had opened, including 40 institutions
of higher education. Extensive changes were made to the curriculum, including
the teaching of previously banned literary works, a reinterpretation of
Soviet and Russian history, and an end to the study of politically inspired
subjects.
Nurseries, kindergartens, and other early education facilities are
particularly well attended in Russia. In the early 1990s 64 percent of
the children of preschool age attended a preschool facility-one of the
highest proportions among the former Soviet republics.
Russia's system of specialized secondary education is also well developed.
In the early 1990s Russia had 2603 such institutions. Enrollment was about
2.3 million. Specialized secondary schools train skilled and semiprofessional
workers such as technicians, nurses, elementary-school teachers, and other
specialists who generally function as assistants to professional graduates
of higher educational institutions. The specialized secondary school program
lasts up to four years, and graduates receive the equivalent of a general
secondary education as well as specialized technical training. Vocational-technical
schools offer one- to three-year programs of training in semiskilled and
skilled occupations. In these schools a student might complete a general
secondary education while obtaining occupational training.
In the early 1990s Russia had 519 institutions of higher education
with 2,763,000 students, or approximately 11 percent of the total population
over the age of 15. Universities comprise only a small proportion of the
higher educational establishments; the vast majority are institutes that
specialize in vocational training. A large percentage of students take
correspondence courses or attend classes on a part-time basis. Traditionally,
tuition was free, with students receiving a monthly stipend, but some universities
began to charge students for tuition in the early 1990s. The country's
most prominent universities include Moscow State University (founded in
1755), Saint Petersburg State University (1819), Kazan' State University
(1804), and Novosibirsk State University (1959). Other important universities
are located in Rostov-na-Donu, Nizhniy Novgorod, Tomsk, Vladivostok, and
Voronezh. In addition to universities and institutes, the Russian Academy
of Sciences (1725), one of the world's foremost organizations devoted to
scholarly research, is in Russia.
Undergraduate training in higher educational institutions generally
involves a four- or five-year course of study, after which students might
enroll for graduate training for a one- to three-year term. Graduate students
who successfully complete their courses of study, comprehensive examinations,
and the defense of their dissertations receive candidate of sciences degrees,
which are roughly equivalent to doctoral degrees in the United States.
A higher degree, the doctor of sciences, is awarded to established scholars
who have made outstanding contributions to their disciplines.
Culture
The history of Russian literature, music, ballet, and drama includes
some of the greatest artists and works ever produced. Much of this art
flowered in Russia during the 19th century, and major cultural figures
of the period include such writers as Aleksandr Pushkin, Leo Tolstoy, Fyodor
Dostoyevsky, Nikolay Gogol, Ivan Turgenev, and Anton Chekhov, and such
composers as Mikhail Glinka, Peter Tchaikovsky, Nikolay Rimsky-Korsakov,
Modest Mussorgsky, and Aleksandr Borodin. Drama, ballet, and opera also
have their traditions rooted in the 19th century; a prominent figure in
theater at this time was Konstantin Stanislavski, who founded the Moscow
Art Theater in 1898. Under the influence of the Soviet government, however,
Russian cultural works of the 20th century were heavily censored, and many
outstanding writers and artists were stifled or forced to publish their
works abroad. The great tradition of Russian literature was carried on
by a few writers of the Soviet period, such as Maksim Gorkiy, Vladimir
Mayakovsky, Boris Pasternak, Mikhail Sholokhov, and Aleksandr Solzhenitsyn.
Solzhenitsyn was exiled in the 1970s because of his controversial work,
which includes the famous novel One Day in the Life of Ivan Denisovich
(1962; translated 1963); Solzhenitsyn returned to Russia in 1994. See Also
Russian Literature.
Music, dance (especially classical ballet), and film fared somewhat
better during the Soviet period. Famous composers of the period included
Dmitry Shostakovich and Sergey Prokofiev. Important filmmakers of the early
Soviet period were Sergey Eisenstein, known for his mastery of montage;
Lev Kuleshov; and Vsevold Pudovkin. Andrey Tarkovsky, who lived abroad
from the late 1960s until his death in 1986, was one of the most notable
directors of the late Soviet period.
Russian achievements in literature, music, ballet, and drama are also
well represented in a wide variety of cultural institutions. Russia maintains
a huge number of museums of all kinds, including outdoor museums of architectural
preservation. Most of the country's major cultural institutions are in
Moscow and Saint Petersburg. Best known to tourists are the Hermitage Museum
in Saint Petersburg, one of the world's great museums, and the Armory Museum
in the Moscow Kremlin. Also in Moscow are the Tretyakov Gallery, with a
collection devoted to Russian art, the Pushkin Museum of Fine Arts, the
Folk-Art Museum, and the Museum of the Revolution, as well as many other
smaller, more specialized collections. The Permanent Exhibition of National
Economic Achievements in Moscow offers a large display of contemporary
achievements in science, industry, and agriculture. To the northeast of
Moscow there is a string of a half-dozen old kremlin (citadel) towns
that served as seats of government for city-states during the Middle Ages.
These have been restored as part of a tourist circuit known as the Golden
Ring.
Russia also has thousands of libraries of various kinds. Best known
is the Russian State Library in Moscow, which houses more than 30 million
volumes in some 250 languages-one of the largest library collections in
the world. Other leading libraries include the M. E. Saltykov-Shchedrin
Public Library in Saint Petersburg, with about 28.5 million volumes; the
Library of the Russian Academy of Sciences, with about 19 million volumes;
and Moscow State University Library, with about 6.6 million volumes.
The best-known theaters in Moscow are the Bolshoi ("Big") Theater,
the Maly ("Small") Theater, and the Moscow Art Theater. In addition, many
of the larger productions of the Bolshoi ballet and opera troupes are presented
in the Kremlin Palace of Congresses, which seats 6000 people. Other theaters
of note in Moscow are the Central Children's Theater, the Obraztsov Puppet
Theater, the Moscow Art Theater, the Stanislavsky and Nemirovich-Danchenko
Musical Theater, the Operetta Theater, and the Theater Art Institute. Saint
Petersburg has the Mariinskiy Theater of Opera and Ballet, the Maly Theater,
and the Pushkin Dramatic Theater.
Economy
The economy of Russia, as in other former Soviet republics, was severely
disjointed by the dissolution of the USSR in 1991. But by the mid-1990s
there were signs that the economic decline had been arrested. An economy
once overly dependent upon heavy industry, particularly military manufactures,
had begun to recast itself with an increasing consumer orientation.
Economic decline began in the last years of the Soviet period. After
the breakup of the USSR, gross domestic product (GDP) continued to contract,
by 1994 falling to nearly half the level held when free-market reforms
began in late 1991, a greater drop than industrial nations experienced
during the Great Depression of the 1930s. Despite this, the government
moved forward with privatization and projected that the economy would begin
to grow by 1997. Inflation, while still high, had been restrained to an
estimated 250 percent annually in the mid-1990s. At the start of the reform
period, the price of consumer goods had risen by about 2600 percent annually.
Still, the Russian economy faced difficulties in the mid-1990s. Unemployment
reached an estimated 7 percent, which although low by the standards of
many industrialized nations, was far higher than Russia experienced during
the worst of the economic transformation. The country's budget deficit
remained high, and Russia's currency, the ruble, continued to fall against
major world currencies. The emergence of a service sector was hindered
by growing organized crime and an entrenched bureaucracy.
Among the causes of the Russian economic crisis were the disruption
of traditional trade patterns and shocks caused by economic reforms. Trade
between Russia, other former Soviet republics, and Eastern European countries
declined markedly starting in the late 1980s, when Eastern European countries
achieved independence from Moscow and the Soviet-controlled system of trade
and production began to disintegrate. Trade between Russia and other republics
suffered from disputes over terms of trade, especially over the price of
Russian oil exports. Overlapping property claims by different levels of
government administration within Russia added to the confusion in conducting
business with Russia.
Market reforms, vigorously pursued by President Boris Yeltsin and his
supporters beginning in early 1992, were met with widespread resistance
by industrial managers and other conservatives. (See the Government section
of this article.) Despite protests by government officials, the Central
Bank of Russia extended large subsidies to inefficient enterprises in 1992,
which contributed to inflationary pressures and increased the government
deficit. Beginning in mid-1993, however, the bank began to adhere to governmental
directives on subsidies. Privatization continued-about 14,000 of all state
and municipal enterprises had been privatized by early 1995-but the process
depended to a large degree on the support of local officials. Privatization
proceeded much faster in certain cities, such as Nizhniy Novgorod, Saint
Petersburg, and Yaroslavl', than in the country as a whole. In addition,
the legal framework for privatization was incomplete. Privately owning,
selling, and renting land was not legally permitted until October 1993,
when President Yeltsin issued a decree that repealed a ten-year moratorium
on reselling land that had been imposed by the legislature.
Labor
The total workforce in Russia numbered 75 million in the early 1990s.
While many continued to work in state-owned enterprises, the number was
decreasing as more of these industries privatized or closed. Industry and
construction are the country's leading sectors of employment, with about
42 percent of the total workforce. Agriculture, fishing, and forestry account
for about 14 percent of all employment. Trade and transport respectively
employ about 9 percent and 8 percent of the total workforce, while other
services employ about one-fourth of all workers. More than 5.3 million
people (about 7 percent) are unemployed, and the number of jobless could
be even higher; thousands work with no pay or with extremely limited hours.
The unemployed include a high percentage of women and a rising number of
young people.
The organization of labor has changed little since the Soviet period.
Labor unions are dominated by organizations that succeeded the official
Communist labor unions of the USSR; these organizations survived the collapse
of Communism with their leadership, property, and apparatus intact. Their
parent organization, the Federation of Independent Trade Unions (Russian
acronym, FNPR), claims 50 million members, or nearly 70 percent of the
total workforce. By contrast, the membership of unions not affiliated with
the FNPR is less than half a million. The FNPR unions initially retained
several powers from the Soviet period, including control over social security
funds, the ability to automatically deduct union fees from workers' paychecks,
and the right to veto proposals by management to fire workers. In 1993
the administration of the social security system was transferred outside
the trade unions. Several independent trade unions also have formed, including
those representing dock, locomotive, metallurgical, and air-traffic control
workers. Those unions joined the influential Independent Trade Union of
Miners, which played an important role in the collapse of the USSR, in
forming a coordinating council to counter the influence of FNPR. Government
attempts to reduce the powers of the FNPR prompted most of the FNPR unions
to express political support for the conservative opposition. In addition,
the FNPR established a close relationship with industrial management that
resembles the Soviet-era relationship between labor and management.
Agriculture
Agriculture, which accounted for 15.6 percent of total net material
product in 1991, experienced a sharp decline in output in the early 1990s.
Between 1990 and 1993, total agricultural output declined by more than
5 percent per year, and grain production dropped by 8 percent. Meat production
and livestock herds diminished considerably. Between 1990 and 1992, the
total number of pigs fell by 12 percent, sheep by 10 percent, and cattle
by 7 percent. The decline in livestock herds can be attributed in part
to a lack of animal feed, while the decline in crops resulted chiefly from
a lack of reliable credit and a sharp rise in the price of mechanical,
chemical, and fuel inputs. Privatization has occurred slowly in agriculture.
Nearly all agricultural land (90 percent in 1994) remains under the control
of former collective and state farms, most of which have been reorganized
as producer cooperatives or joint-stock companies. Still, by 1994 some
270,000 mainly small-scale private farms had been created. Much of the
agricultural output of the country is bought by the state, but this proportion
declined steadily in the early 1990s. The drop in state procurements was
most notable in sugar beets, vegetables, sunflower seeds, and potatoes.
However, as of 1992 the state still purchased more than half of all meat,
milk, and eggs produced.
Russia is a major producer of wheat, barley, oats, and rye. In the
early 1990s Russia annually produced 46 million metric tons of wheat, 25.5
million metric tons of barley, 13.9 million metric tons of rye, and 11.5
million metric tons of oats. Russia also produced the following (in metric
tons): sunflower seeds, 3.1 million; sugar beets, 25.5 million; potatoes,
37.8 million; and vegetables, 9.9 million. Other important crops in Russia
include dry peas, corn, millet, buckwheat, rice, and soybeans. Various
types of temperate-climate fruits, such as apples, pears, and cherries,
are also grown extensively in Russia. In the far north, reindeer herding
is a major occupation among the native peoples.
Most of the country's farmland lies in the so-called fertile triangle
that has its base along the western border stretching from the Baltic Sea
to the Black Sea and which tapers eastward to the southern Urals, where
it narrows to a strip about 400 km (about 250 mi) wide, extending across
the southwestern fringes of Siberia. East of the Altai Mountains, agriculture
is found only in isolated mountain basins along the southern fringes of
Siberia and the far eastern region. Areas outside this fertile wedge are
unsuitable for crops without human modification. To the north, the growing
season is too short without the aid of hothouses. To the south, the climate
is too dry without irrigation. During the Soviet period, extensive irrigation
works were constructed along the Kuban' and other rivers in southern European
Russia to support agriculture there.
Forestry
Russia, which contains about one-fifth of the world's forests and about
one-half of the world's coniferous forests, is one of the leading producers
of lumber and wood products. Most of Russia's timber production consists
of softwood, mainly varieties of pine, fir, and larch. The principal commercial
hardwood tree is birch. About one-fifth of all timber felled is used as
firewood, and another fifth is used in raw form, for telephone poles, log
cabins, and other uses. Primary areas of timber production are northwestern
European Russia, the central Ural Mountains, southern Siberia in the vicinity
of the Trans-Siberian Railroad, and far southeastern Russia.
The most accessible and valuable stands of timber were heavily harvested
during the Soviet period, and less valuable tree species have become dominant
in many areas that were once prime forest land. Remaining forests are located
in less accessible areas of Siberia and northern European Russia. These
forests, especially in Siberia, contain a high proportion of larch, a difficult
and expensive species to exploit because of its high density and resin
content. Large-scale exploitation of these less-accessible larch forests
has not proven to be cost-effective, due to difficulties in extracting,
transporting, and processing larch logs. Technological improvements and
changes in the world timber market, however, could make the logging of
larch forests more economically attractive.
Russia's forestry harvest was 269 million cu m (9.5 billion cu ft)
in the early 1990s; timber production was particularly affected by the
disruption of economic ties in the post-Soviet period. Timber output in
the first quarter of 1993 was 27 percent lower than production levels at
the same time in 1992, a higher percentage of decline than that of the
industrial sector.
Fishing
Russia's fishing industry is one of the largest in the world. Fish
has long been an important source of protein in the Russian diet. During
the Soviet period, the per capita consumption of fish rose to about 23
kg (about 50 lb) a year. Historically, fishing was concentrated on bordering
seas and inland lakes and rivers. In recent decades, however, a great effort
was made to expand fishing activities; Soviet fleets began to operate in
most areas of the world's oceans, and fish farming was developed in erosion-control
ponds and rural irrigation reservoirs and ditches. In the early 1990s Russia's
annual catch was about 5.6 million metric tons. Marine fisheries accounted
for the largest share of the catch. The saltwater Azov, Black, and Caspian
seas, in addition to freshwater lakes, rivers, reservoirs, and ponds, accounted
for the inland catch. In the mid-1990s, Russia's fishing industry ranked
fourth in the world, after Japan, the United States, and China.
Outstanding among commercial species in inland waters is the sturgeon
of the northern Caspian Sea. The main source of the world's caviar, these
fish may live as long as 100 years and attain weights of up to 1.5 metric
tons. A single female commonly produces about 25 kg (about 55 lb) of valuable
roe (eggs). Another huge fish is the Kaluga sturgeon or Amur queen found
in the Amur River; the world's largest freshwater fish, it may reach 6
m (20 ft) in length and 1 metric ton in weight.
About 25 percent of the Russian fish catch comes from the North Atlantic
and Arctic oceans. Much of the Atlantic fishing fleet is based at ports
on the Baltic Sea. Kaliningrad is the largest Russian fishing port on the
Baltic; another important Baltic port is Saint Petersburg on the Gulf of
Finland. The principal commercial species taken in the Baltic Sea are herring
and sprat. Murmansk and Arkhangel'sk are the most important fishing ports
on the western Arctic coast. Many fishing ports are located on the coasts
of the Black, Azov, and Caspian seas in the south; Astrakhan' is a notable
fishing port near the Caspian Sea.
About 60 percent of the Russian fish catch is taken from the Pacific
Ocean and its marginal seas, including the Bering Sea. Vladivostok is by
far the largest fishing port and fish-processing center of the Pacific
region; many other fishing ports are scattered along the mainland coast
as well as on Sakhalin Island. Because of its cold waters, the Sea of Okhotsk
is one of the richest of Russian fishing grounds. It is especially known
for salmon, but the Kamchatka crab is also world renowned. Other common
species taken in the Pacific include herring, flounder, smelt, mackerel,
and cod, as well as the marine mammals-walrus and seal.
During the mid-1980s the USSR was the world leader in whaling. Although
Soviet commercial whaling in the North Pacific ceased in 1979, whaling
continued in the seas surrounding Antarctica. In Russia, whaling flotillas
were based primarily in Vladivostok on the Pacific coast. The USSR formally
ended all commercial whaling activities in 1988.
Mining
Mining is a major sector of the Russian economy and provides important
items for national export. Mineral resources are diverse, abundant, and
generally well developed. Russia has large reserves of energy-bearing minerals,
including petroleum, coal, and natural gas. For many years it extracted
enough of the minerals to meet domestic demands, provide for nations in
its economic sphere, and export to industrial nations of the West in return
for needed hard currency. Production of energy fuels declined in the early
1990s, however, in part because existing fields were being depleted and
Russia lacked funds necessary to develop new deposits, many of which were
located in inaccessible areas of Siberia. Oil production fell by 11 percent
in 1991 and by about 15 percent in 1992; coal output declined by about
15 percent over the same years; natural gas production decreased only slightly.
Annual production in the early 1990s included petroleum (2.87 billion barrels);
coal (337 million metric tons); and natural gas (640 million cu m/22.6
billion cu ft), in which Russia ranked as the world's leading producer.
As with other extractive industries in Russia-namely logging and mining-fossil-fuel
production shifted eastward during the Soviet period. The primary oil fields
lie in western Siberia, which accounted for about half of total Soviet
production, and the Urals-Volga region, which accounted for one-third of
total Soviet production. Other important oil fields are located in the
North Caucasus and the northern part of Sakhalin Island. The main sources
of natural gas are found in close proximity to the main sources of oil-in
western Siberia, the Urals-Volga region, and the North Caucasus. The leading
areas of hard-coal production are the Kuznetsk Basin in western Siberia
and the Pechora Basin in northeastern European Russia. The Kansk-Achinsk
Basin in Siberia and the Moscow Basin are the leading areas of lignite,
or brown coal, extraction. Lesser coal mines are scattered throughout Siberia,
where huge reserves of coal remain largely untapped, such as the Tunguska
Basin, which covers much of central Siberia.
Russia is a major exporter of iron ore (12 million metric tons in 1990),
with most production occurring in the Kursk Magnetic Anomaly of south central
Russia. Russia is also a notable exporter of copper (168,000 metric tons
in 1990) and nickel (127,000 metric tons in 1990). Copper and nickel ores
are mined primarily in the Urals, although sizable deposits of nickel are
also located in the Kola Peninsula near Murmansk. The country is one of
the world's leading producers of gold, which is mined in the Urals, western
Siberia, and eastern Siberia in the valley of the Lena River. Russia is
also a major diamond producer; much of the country's diamond extraction
takes place in the republic of Sakha (Yokutia) in northeastern Siberia.
Bauxite deposits are located primarily in the Urals and northwest European
Russia near Saint Petersburg. Lesser deposits are found in western Siberia
near Kemerovo and in the far eastern region near the mouth of the Amur
River. Tin is mined in northeastern Siberia, and lead and zinc are mined
in Siberia and the far eastern region. Manganese deposits are located in
the Urals, western Siberia, and the far eastern region.
Manufacturing
The structure of Russian industry was greatly affected by theoretical
assumptions of Soviet planners on the role of industry in economic growth.
In accordance with Soviet theory, heavy industry was promoted above all
other sectors, with the greatest emphasis on the machine-building and metalworking
industries because they provide the means for more production. The products
of these industries are diversified, ranging from fine tools, instruments,
and computers to industrial machines of all sorts, transportation and communication
equipment, agricultural machinery, mining equipment, and space vehicles.
Industrial output for national defense also received high priority in Soviet
plans. Russian industries are very technologically advanced in the production
of certain items, such as aerospace technology, but the overall level of
technology is far below the levels of other highly industrialized countries.
The machine-building industries are mainly located in the largest cities
because these industries are labor intensive.
In the late 1920s the Soviet government began planning the industrialization
of the USSR, devoting particular attention to the geographical location
of the vast industrial complexes. Initially, Soviet manufacturing enterprises
in Russia were concentrated in the Moscow and Saint Petersburg areas. Simultaneously,
work was begun on the electrification of areas in the Urals known to have
large coal and mineral reserves, and planning began for the electrification
of various Siberian regions. As economic planning progressed, and as the
electric-power areas increased, huge new manufacturing complexes were installed
to take maximum advantage of these natural resources. As a result, production
increased in the eastern regions. This significant expansion was accomplished
by developing the new eastern industrial regions, rather than by reducing
the production of the older centers; indeed, the older industrial regions
continued to increase their output.
Today the manufacture of transportation equipment is concentrated in
central European Russia. Railroad locomotives are produced at Kolomna,
Murom, and Lyudinovo, all of which are located near Moscow. Railroad cars
are built in plants at Tver', northwest of Moscow, and at Bryansk, southwest
of Moscow. A large railroad-car plant in the Minusinsk Basin in eastern
Siberia services the Trans-Siberian and Baikal-Amur Magistral (BAM) railroads.
Subway cars are manufactured in Mytishchi, a northern suburb of Moscow;
Engel's, in the Volga Valley, is the main center for manufacturing trolley
buses.
The largest shipbuilding center is in Saint Petersburg on the Baltic
Sea. Smaller shipyards are located in Kaliningrad on the Baltic Sea, in
Arkhangel'sk on the White Sea, and at certain ports on the Pacific coast.
Most of the country's river-craft are built in the Volga-Kama River Basin.
The oldest, and still the largest, river craft shipyard is located in the
city of Nizhniy Novgorod; other riverboat manufacturing plants are in Moscow,
Rybinsk, and Kostroma on the upper Volga River.
The motor-vehicle manufacturing industry is limited in Russia because
the Soviet government gave low priority to vehicular traffic as compared
with railroads and other forms of transportation; however, Russia has several
large-scale automobile and truck factories. These factories produced about
85 percent of all trucks and cars manufactured in the USSR in 1990. The
largest construction project in the USSR during the eighth Soviet Five-Year
Plan (1966-1970) was the establishment of the Volga Motor Vehicle Plant
at Tol'yatti, in eastern European Russia. This plant's capacity is about
660,000 automobiles a year; the plant, however, has been running well below
capacity in recent years. Other important automobile assembly plants are
in Moscow, Izhevsk, and Nizhniy Novgorod. The largest construction project
during the ninth Five-Year Plan (1971-1975) was the Kama River Truck Plant
in Naberezhnye Chelny. Trucks are also produced in Nizhniy Novgorod, Moscow,
Simbirsk on the Volga, and Miass in the Urals.
The manufacture of agricultural machinery is a large industry in Russia.
In 1990 Russia accounted for 60 percent of the total production of agricultural
machinery in the USSR, which was formerly the largest producer of tractors
in the world and a sizable exporter. Most of the principal producing plants
are in European Russia, in Volgograd, Vladimir, Bryansk, and Lipetsk. Chelyabinsk
in the Urals and Rubtsovsk in Siberia are also major production centers.
Self-propelled combines and other farm machinery are produced in Rostov-na-Donu.
Russia is also a major producer of textiles. The USSR led the world
in the production of virtually all kinds of textiles, with the majority
of its productive capacity located in the Russian cities of Moscow, Ivanovo,
Kostroma, Tver', and Vladimir, where textile production has been based
for more than a century. In the late 1980s the annual production of cotton
yarn in the USSR stood at 1.7 million metric tons, which ranked well above
the second-place competitor, the United States. The country was by far
the world's largest producer of linen fabrics (1.2 billion sq m/about 1.4
billion sq yd) and woolen yarn (465,000 metric tons). It was second only
to Japan in the production of natural silk woven fabric. The USSR also
led in the production of rayon and acetate fibers but lagged in synthetic
fibers derived from noncellulose materials. In general, the country was
somewhat behind the rest of the developed world in the technology of synthetic
fibers and plastics. Since the breakup of the USSR, textile production
in Russia has suffered greatly, as the other Soviet republics were a major
source of textile raw materials. Nearly all of the country's raw cotton
came from the Soviet republics in Central Asia and the republic of Azerbaijan,
but with a shortage of supplies from these countries, many Russian textile
mills were forced to close. Total textile production in Russia fell by
more than 50 percent in 1992.
Russia has traditionally been a major producer of leather goods, and
the Soviet government greatly expanded and dispersed the industry. The
USSR ranked as world leader in the production of leather footwear, manufacturing
approximately 820 million pairs of shoes and boots each year, compared
with 217.6 million in the United States.
The food industries form another major manufacturing sector in Russia.
Initially, flour mills were built in the major grain-producing areas, but
newer flour mills are generally located in areas with larger population
concentration. A considerable portion of the country's fresh fruits and
vegetables are canned or preserved in the growing areas, because transportation
and refrigeration facilities are not adequate to market fresh produce at
great distances.
In general, industrial output in Russia has declined substantially
in recent years, which continues a general slowdown in industrial growth
that took place during the last years of the USSR. Overall industrial production
declined by about 18 percent in 1992 and about 16 percent in 1993, although
the drop in production of specific items was much greater. In comparison
to first-quarter output in 1992, the 1993 first-quarter output of paints
and lacquers was 50 percent lower, synthetic dyes 48 percent lower, cement
38 percent lower, and synthetic rubber 32 percent lower. Production of
consumer durables declined overall in 1992, although the output of some
products, such as television sets, actually increased. The production of
food items also declined in general, with the exception of sugar production,
which recently increased.
Tourism
Tourism was a major source of foreign exchange for the USSR, and despite
political differences with many Western countries, the Soviet government
developed procedures to cater to this activity. A huge state organization,
Intourist, handled all touring arrangements, and many beryozka, or hard-currency,
stores were established to sell a wide variety of souvenirs to foreign
tourists. Student travel was handled by Sputnik, the international youth
excursion bureau. Each year about 7 million people visited the USSR; slightly
more than half of these visitors were from the countries of Eastern Europe.
The Soviet government encouraged domestic travel, and each year millions
of Soviet citizens visited parts of the country remote from their own homes.
The capital city of Moscow, in particular, was the destination of many
Soviet vacationers.
In post-USSR Russia, tourism continues to be an important source of
business, and the country contains a wide variety of tourist attractions.
Primary cultural attractions include czarist retreats near Saint Petersburg,
the Old Town of Novgorod, the Golden Ring of medieval towns surrounding
Moscow, and numerous museums, galleries, theaters, and architectural points
of interest in the cities of Moscow and Saint Petersburg. Resorts on the
Black Sea are popular with foreign and domestic tourists alike. Cruises
along the Volga River are also popular. The Caucasus Mountains offer a
variety of outdoor activites, such as hiking, camping, mountain climbing,
and fishing. Lake Baikal, the deepest freshwater lake in the world and
home of numerous unique animal and plant species, attracts thousands of
visitors annually. Vacation rides on the Trans-Siberian Railroad are also
in great demand.
Foreign Trade
From the end of World War II in 1945 through the mid-1980s, political
considerations dictated that the former USSR's principal trading partners
be socialist countries, notably those of Eastern Europe. Even before the
political upheavals at the close of the 1980s, however, both the USSR and
its socialist allies had found it necessary to import more advanced technology
from the developed Western countries. By 1987 members of the Council for
Mutual Economic Assistance (COMECON or CMEA) accounted for 60 percent of
Soviet exports and 64 percent of imports, while Western countries supplied
23 percent of Soviet imports and purchased 21 percent of exports. Among
the socialist countries, East Germany was the USSR's leading trade partner,
followed by Czechoslovakia, Poland, Hungary, and Bulgaria. The USSR's main
trading partners outside the socialist bloc were West Germany, Italy, and
Japan.
In recent years the pattern of Russia's external trade has changed
considerably. Developed Western countries now account for more than half
of Russia's trade activities outside of the former Soviet republics (60
percent in 1992). Germany is Russia's leading trading partner (excluding
trade with the former Soviet republics), with 17 percent of total trade
in the first quarter of 1993. In contrast, former COMECON countries received
only 20 percent of Russia's total exports (excluding trade with the former
Soviet republics), and contributed less than 16 percent of total imports
to Russia. Developing countries accounted for roughly 10 percent of Russia's
total trade outside the former USSR.
Another notable change in Russia's external trade has been a sharp
decline in trade volume. In 1992 exports to areas outside of the former
USSR were less than two-thirds of the 1988 export level, while imports
were less than half of the 1988 level. Foreign trade fell even further
in the first quarter of 1993, which was caused in part by new import tariffs
and additional controls on strategically sensitive exports. Russia does
maintain a positive balance of trade, with annual exports in the early
1990s estimated at $43 billion and imports of $27 billion. Attempts to
determine Russia's true trade balance, however, are complicated by the
existence of barter trade and the illegal transfer of Russian assets abroad.
Barter trade constituted an estimated 40 percent of total annual exports
and 26 percent of total annual imports in the early 1990s. Goods are bartered
primarily with the former Soviet republics, most of whom still receive
Russian fuel at subsidized prices. As to the illegal transfer of Russian
assets, some estimates place the total amount of illegal capital outflow
to date at $10 billion or more.
Energy
Russia is the only large developed country in the world with adequate
energy supplies. It is not only self-sufficient in the production of mineral
fuels, but also able to export considerable quantities of them. Coal accounted
for most of Russia's energy production until 1955, after which a gradual
shift to oil and natural gas took place. By the 1970s oil and natural gas
had become the country's primary energy sources, and the USSR became the
world's largest producer of fossil fuels. In 1990 Russia, which contains
7 to 10 percent of the world's proven reserves of oil, produced most of
the USSR's energy output-90 percent of all oil, 79 percent of all natural
gas, and 56 percent of all coal.
Other important sources of energy in Russia are hydroelectric and nuclear
power. Russia has vast waterpower resources, and waterpower accounts for
about 15 percent of the total yearly electrical production. Important hydroelectric
stations are located on the major rivers of European Russia, notably on
the Volga and Don rivers. The largest hydroelectric installations, however,
are on the great rivers of Siberia, particularly on the Yenisey and Angara.
Nuclear power accounts for about 13 percent of total energy production
in Russia, with most of the country's 29 nuclear energy reactors located
in European Russia. The country's two largest cities, Moscow and Saint
Petersburg, depend on nuclear energy for about one-fifth to one-third of
their electrical needs. The Chernobyl' accident in Ukraine in 1986 prompted
Soviet officials to abandon plans to greatly expand nuclear capacity, but
in 1992 the Russian government reversed the decision and announced plans
to expand nuclear energy production in the country.
Currency and Banking
The basic monetary unit of Russia is the ruble, consisting of 100 kopeks.
For decades the USSR did not allow the ruble to circulate in world markets,
instead setting an arbitrary value relative to foreign currencies; the
official conversion rate in 1991 was 0.57 ruble per U.S.$1. Beginning in
late 1991 the Russian government took decisive steps to liberalize ruble
convertibility, after which the value of the ruble plummeted. In 1992 the
ruble's value fell to less than one-hundredth of the U.S. dollar, and in
1993 it dropped to less than one-thousandth of a dollar. The Russian government
issued a new ruble devoid of Soviet insignia that year, and issued a recall
of all pre-1993 ruble banknotes. The currency continued to plummet in value
in late 1994 and into 1995, reflecting overall economic and political instability
in Russia. In 1997 the exchange rate was 5750 rubles per U.S. $1.
The structure of banking in Russia has changed significantly since
the mid-1980s. In the last years of the USSR, the subsidiary banks of Gosbank
the federal bank of the USSR, were converted into commercial banks and
relicensed under the new Central Bank of Russia. The five large Soviet
sectoral banks (a general savings bank, the foreign trade bank, and banks
for the social sector, agriculture, and construction and industry) were
either converted to commercial banks or closed. The remaining sectoral
banks were no longer assigned specialized functions or clientele by the
government, although they retained much of their former clientele through
inertia. The converted sectoral banks were much larger than the newly established
commercial banks. Assets of the largest former sectoral bank exceeded 110
billion rubles in mid-1991, versus 1.5 billion rubles on average for the
leading new commercial banks. The two types of banks also differed in the
clientele they served; former sectoral banks primarily served state enterprises,
while the new commercial banks generally served private businesses. By
1993 about 2000 commercial banks had opened; as of early 1995 the number
had grown to about 2500. In 1993 the Russian government issued regulations
restricting the activities of foreign-owned banks operating in Russia.
Led by its chairperson, who opposed radical reform, the Central Bank
of Russia became politically involved in the early 1990s in the struggle
between the government and the legislature over economic reform. The bank,
which was nominally subordinate to the legislature, issued credits far
in excess of government requests (up to 50 percent over government guidelines
according to some estimates), which hindered reform efforts by supporting
inefficient enterprises and fueling inflation. Under the 1993 constitution,
the Central Bank of Russia is independent of direct government or legislative
control, although its chairperson will be appointed by the lower house
of the legislature acting under the president's recommendations.
Transportation
The Russian transportation network is state-owned and nationally integrated.
The overall network is much less dense, however, than those of most other
developed nations. The Soviet government considered transportation expenditures
an unproductive but necessary part of the economy. Emphasis was therefore
placed on the types of facilities that move the greatest amount of goods
and people at the least cost, often sacrificing convenience to the consumer
in order to maximize efficiency. The network is dominated by railroads;
motor traffic plays a minor role. A great network of oil and gas pipelines
facilitated the rapid expansion of the petroleum and natural-gas industries,
and maritime shipping has facilitated the growth of foreign trade.
Passenger transportation is also dominated by railroads, although in
recent years buses have taken over much of the commuter traffic, and airlines
account for a great deal of long-distance travel. The density of the railroad
network generally corresponds to the regional population density. The network
is relatively dense in most of European Russia south of Saint Petersburg,
but is sparse in Siberia and the far eastern region. Overall length of
the rail system is 86,800 km (about 53,900 mi). Russian railroad lines
carry the heaviest freight traffic in the world. The densest traffic on
a single line occurs on the western Siberian section of the Trans-Siberian
Railroad, where trains occasionally run as frequently as once every three
minutes. To relieve some of the traffic, parallel lines were built in western
Siberia and northern Kazakstan. A new line, the Baikal-Amur Magistral (BAM),
was built through Siberia and the far eastern region to the north of the
present Trans-Siberian Railroad.
The Soviet government neglected automobile transportation because of
the high costs of constructing and maintaining roads as well as the higher
overall shipping costs. About half of the roads are surfaced with concrete
or asphalt; the rest are gravel. Few of the country's roads are more than
two lanes wide. Like the railroad network, the road network is most dense
in the European part of the country.
The merchant fleet of Russia ranked among the largest in the world,
with 867 vessels of over 1000 gross tons in the early 1990s. The principal
civilian seaports in Russia include Novorossiysk on the Black Sea; Saint
Petersburg and Kaliningrad on the Baltic Sea; Nakhodka, Vostochnyy, Vladivostok,
and Vanino on the Pacific coast; and Murmansk and Arkhangel'sk on the Arctic
coast.
The Volga River is the most important inland waterway in Russia. It
carries more than half the river traffic of the country. Navigation on
this system was enhanced by the construction of seven major dams as well
as the Volga-Don Canal in the south and the Volga-Baltic Waterway in the
north; the Volga-Don Canal provides a sea outlet through the Black Sea,
the Volga-Baltic Waterway, through the Baltic Sea. Major ports along the
Volga River are Rybinsk, Nizhniy Novgorod, Samara, Volgograd, and Astrakhan'.
Another major port, Rostov-na-Donu, is on the Sea of Azov near the mouth
of the Don River. The ports of Moscow are provided with connections to
the Volga system through the Moscow Canal that runs north from Moscow to
the Volga River. In Siberia and the far eastern region, rivers are the
only transportation system in areas remote from the railroad. Most Siberian
rivers, including the Lena, Yenisey, and Ob', flow north to the Arctic
Ocean, thus limiting their importance in a region where eastern-western
links are vital. The eastward-flowing Amur River is the chief navigable
stream of the far eastern region. |
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