Other State Department Archive Sites

The State Department web site below is a permanent electronic archive of information released online from January 1, 1997 to January 20, 2001. Please see www.state.gov for current material from the Department of State. Or visit http://2001-2009.state.gov for information from that period. Archive sites are not updated, so external links may no longer function. Contact us with any questions about finding information. NOTE: External links to other Internet sites should not be construed as an endorsement of the views contained therein.

Country Commercial Guides for FY 2000: Russia Report prepared by U.S. Embassy Moscow, Released July, 1999 Note*

X. ECONOMIC AND TRADE STATISTICS

APPENDIX A: COUNTRY DATA\1

Population:    147.6 million (1998 growth: -.5 percent)
Religions:    Russian Orthodox, Muslim, Jewish, Buddhist, Catholic, Protestant, other.
Government:    Federal, comprised of 89 Republics, Oblasts (regions), Territories and Autonomous Areas.
Languages:    Russian (official), plus over 140 other languages and dialects

Work Week:    40 hours.

APPENDIX B:

Domestic Economy	1997	1998	1999
GDP (billions of rubles)	2522	2685	4000
Real GDP growth rate (%)	0.4	-4.4	-3 to -5
GDP Per Capita (rubles)	1835	1825	2721
Government Spending (% GDP)	113	83	14
Inflation (average annual, in %)	11.1	184	35
Unemployment (%)	9.6	11.8	14.1
Foreign Exchange Reserves ($ bln)	17.8	12.2	n/a
Average Exchange Rate (rubles/$)	5.78	9.97	24.5
Foreign Debt ($ billions)	153.6	164.3	162.3
Debt Service Rati	10.1	14.9	n/a

APPENDIX C:

TRADE ($ billions)	1997	1998	1999
Total Country Export	88.4	73.9	83.4
Total Country Imports	73.6	59.5	49.1
U.S. Exports to Russia	3.3	3.6	3.0
U.S. Imports from Russia	4.3	5.7	5.1

\1 - Source (Appendices A, B, C): Russian State Statistics Committee (GOSKOMSTAT). Total trade data supplied by Russian State Customs Committee. U.S.-Russia trade data supplied from U.S. Department of Commerce, Bureau of the Census.

\2 - 1999 figures are projected.

APPENDIX D: FOREIGN INVESTMENT STATISTICS TABLE I

                      TOP TEN INVESTORS ON ANNUAL BASIS (USD MILLION)

Investor	1997 Total \3	1997 Direct	1998 Total \3	1998 Direct
Total	12,296	3,900	11,773	3,361
Germany	1,647	228	2,848	328
usa	2,996	2,099	2,238	1,170
Britain	2,411	340	1,546	205
France	209	203	1,591	15
Cyprus	992	n/a	917	403
Netherlands	540	340	877	610
Switzerland	1,756	104	411	40
Luxembourg	--	--	228	3
Finland	--	--	185	141
Sweden	72	--	146	70

Source: Goskomstat And Ministry Of Economy
3. Totals Include Direct, Portfolio, And Other Investment.

Table I shows a decline in total investment between 1997 and 1998, from $12.3 billion to $11.8 billion. Foreign direct investment (FDI) declined by 37 percent decline to $3.36 billion in 1998, according to Ministry of Economy data. Balance of payments figures show a larger drop in FDI of two-thirds, from $6.5 billion to $2.2 billion in 1998.

Note: Russian balance of payments data are believed to include investment in bank equity and foreign direct investment that is less than 10 percent of a company's capital; this resulted in much higher figures in 1997 and lower figures in 1998 for foreign direct investment. A large part of the portfolio and other foreign investment, according to Russian government analysts, went into government securities. This category also contains long-term, as well as short-term loans.

TABLE II

                    TOP INVESTORS - ACCUMULATED BASIS (USD MILLION)

Investor	Percent 1997	Million 1997	Percent Jan-Sept 1998	Million Jan-Sept 1998
Total	100.0	21,800	100.0	27,219
Usa	28.6	6,228	17.7	4,783
Britain	16.7	3,639	7.9	2,146
Switzerland	15.4	3,359	2.3	208
Germany	11.6	2,536	31.8	8,652
Cyprus	3.3	728	9.2	2,516
Italy	2.8	605	7.6	2,070
France	1.9	408	12.2	3,331
Sweden	1.8	390	1.5	413

Source: Goskomstat and Ministry of Economy

Figures in Table II can only be taken as a general indication of activity identified with a given country. They do not represent accumulated stock of investment because they include portfolio and "other" investment and do not reflect any withdrawal of funds or decreases in value of assets. Economy Ministry analysts identify direct investment as $3.9 billion in 1997. Comparable data is not yet available for 1998.

TABLE III

                    FOREIGN INVESTMENT - TOP REGIONS (USD MILLION)

Region	Percent 1997	Million 1997	Percent 1998	Million 1998
Total	100.0	10,500	100.0	11,773
Moscow(City)	67.4	7,077	49.8	5,860
Moscow Region	N/A	N/A	6.0	709
Tatarstan	6.7	698	5.8	684
Omsk	3.5	365	3.8	452
Petersburg	1.6	171	3.5	413
Yakutia	--	--	1.7	197
Samara	--	--	1.6	193
Tyumen	1.9	195	1.5	182

Source: Goskomstat and Ministry of Economy

\4 Ministry of Economy data by sector and region in 1997 were calculated using a smaller figure for total foreign investment of $10.5 billion.

Table III shows annual investment for 1997 and 1998 by region. Clearly, Moscow and Moscow Oblast got the lion's share in both years, but the large share of portfolio investment could be expected to favor Moscow, where most banks and investment companies are centered.

TABLE IV

                  FOREIGN INVESTMENT - TOP SECTORS (USD MILLION)

Sector	Percent 1997	Million 1997	Percent 1998	Million 1998
Total	100.0	10,500	100.0	11,773
Fuel Industry	15.8	1,657	15.9	1,880
Food Industry	6.2	646	12.5	1,426
Commercial Activity Supporting the Functioning of the Market**	16.3	1,712	12.1	1,426
Trade/Catering	4.8	509	10.2	1,201
Finance/Credit	42.1	4,416	7.6	900
Chemical/Petrochemical	N/A	N/A	4.6	546
Transport/Communications	1.7	178	5.0	589
Lumber Industry	1.3	134	2.0	240
Communications	1.2	145	2.3	271

Ministry of Economy data by sector and region for 1997 were calculated using a smaller figure for total foreign investment of $10.5 billion. **This category includes, among others, investment, consulting, advertising, and marketing companies. For 1998, it includes only advertising and auditing.

Table IV shows annual investment by sector. Whereas finance and the ungainly "commercial activity supporting the functioning of the market" accounted for close to 60 percent of the total in 1997, investment in 1998 was more evenly distributed among sectors, with a dramatic decline in investment into the financial sector.