MKT 340 Russia Outline.docx - ● Guideline of Analysis and...

● Guideline of Analysis and Presentation:
● Economic Environment
○ GDP, GNI per capita and their rankings of 2019 (1 minute; 0.5 point)
○ Source: As of 2019
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most_recent_value_desc=true
■ GDP - $1,699,876.58 million USD , Ranked 11th worldwide
● Link to Russia GDP historical graphic (should probably put
in slides)
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end=2019&locations=RU&start=2000
●
However, due to the COVID-19 pandemic, the economy
contracted to -4.1% GDP in 2020 (from +1.3% in 2019),
as exports, investment activity and consumer demand
all plunge. According to the IMF's October 2020
forecast, the economy is expected to rebound in 2021
(+2.8%) and 2022 (+2.3%), supported by fiscal and
monetary stimulus and assuming the situation gradually
normalizes. In its most recent January 2021 update of
the World Economic Outlook, the IMF has revised its
GDP growth projections for Russia to 3% in 2021 and
3.9% in 2022 (representing a difference from October
2020 WEO projections of +0.2% and +1.6%,
respectively)--
export.societegenerale.fr/en/country/russia/economy-
country-risk
■ GNI per capita- $11,260 USD, Ranked 75th worldwide
● Another potentially helpful link for Russia Stuff from
WorldBank:

The first 2 elements that influence how open the market is (2 minutes; 2 points)
1.) Restrictions of Foreign Investment,
○ Foreigners subject to numerous restrictions when
establishing businesses in Russia including:
○ Geographic restrictions (closed cities known as
“ZATO” require government permission for
foreigners to establish businesses in.
Limitations regarding the purchase of land in
frontier areas (the list of such frontier areas is stipulated by
an order of the President of the Russian Federation), The
acquisition of agricultural land, The acquisition of land
forming part of a sea port
Restrictions in “businesses of strategic importance” including 45 types of activities considered of
strategic relevance according to the same law. These activities can be broadly encompassed in
four categories: natural resources, defense, media, monopolies.
■ Source:
px?ArticleUid=f24f6117-67d0-453e-a22f-
a4572a5a3d6c
2.) Difficulty in Launching Foreign Owned Businesses)
Judicial system is corrupt, making remisusment for fraud difficult.
Intellectual property laws are in their infancy.
■ The total value of exports and imports of
goods and services equals 51.5 percent of
GDP. The average applied tariff rate is 3.6
percent, and layers of bureaucratic nontariff
barriers further distort the flow of goods and
services. Except in the energy sector, growth
in foreign investment has been elusive

because of the deficient investment
framework. The financial sector is
dominated by banks, and the five largest
banks are state-controlled.