The new information is: Oil reserves are estimated by the 1st January 2012 in total of 28.7 billion tons, and natural gas reserves are about 68.4 trillion cubic meters. It means that Russian raw material reserves are still globally significant. Official Russian data deny information about declining mineral wealth. Russian oil reserves are still in top ten of world “oil countries”. In the gas reserves is Russia second or third in the world (it is based on actual estimates of Iran or Qatar reserves). Question is whether information about Moscow estimate would believe in the rest of the world. Verified data about Russian export support the hypothesis that Russian reserves are rally globally important.
Official information revealed Russia’s Minister of Natural Resources Sergey Donskoy. Disclosure of this information is given by the fact that information of resources are important for domestic and foreign investors. Investors demand these data for correct economic planning.
Oil and natural gas production is a key sector of the Russian economy and an important source of income for state treasury. Taxation of energy sector currently provides nearly half of government revenues.
According to estimates GDP of Russia in 2012 grew by 3.6%. There has been a reduction in growth compared to growth by 4.3% in 2011, but data from 2012 are still great with regard to economic situation in EU. Future estimates of growth are optimistic, for 2014 about 4%. These estimations confirmed Russian authorities and even international institutions.
Russian economy is based on mining of raw materials or their exports. Economy is very vulnerable and susceptible to fluctuations in raw material prices. However, dependence on one sector decreases. Russia is one of the fastest growing emerging markets of the BRICS (Brazil, Russia, India, China, and South Africa) and this fact is attractive for investors – growing standard of living entices investment in light industry or services. Every investment outside the mining sector reduces dependency on oil and natural gas. This weakness is “naturally” solved by grow of living standard and by increasing affluence of ordinary Russians.
Author: Vladimir Stipek
19th July 2013, for The Nordic Page