Under the influence of this policy, after decades of development, as one of the Soviet Union joining **** and the country Russia has a complete industrial system. Specifically divided into eight major industrial sectors: fuel power industry; metallurgical industry; chemical and petrochemical industry; machine building and metal processing industry; building materials industry; forest, wood processing and pulp and paper industry; light industry; food industry. [2]
Industry plays an important role in the Russian economy. Russian industry is characterized by: the development of heavy industry has always taken precedence, at the same time, with the development of social division of labor and scientific and technological progress, gradually emerged many new industrial sectors. The high degree of concentration of industrial production is the result of Russia's productivity layout policy. In industrial production, Russia divides the industrial sector into several complexes for planning and organizing development. These complexes are: the fuel-power complex, the metallurgical complex, the machine-building complex, the chemical-forestry complex, the construction complex, the social complex, and the regional production complexes in the east. [3]
After the collapse of the Soviet Union, the process of privatization of state-owned enterprises in Russia was divided into two stages: the first stage from autumn 1992 to June 1994, and the second stage from July 1994 onwards. During these two stages, major changes in Russia's industrial development also took place. In the first phase of privatization, the traditional planned system was completely broken in the economy and a large-scale transformation of the market economy in the form of privatization was started with state-owned enterprises as a breakthrough. Privatization at this stage was carried out without compensation. Foreign investors could participate in auctions, bidding and investment tenders, as well as purchase privatized securities. By the end of June 1994, 70 per cent of industrial enterprises, including 20,000 large and medium-sized enterprises, had been transferred to demutualization; the proportion of small privatizations had reached 75 per cent; the value of output of privatized enterprises and individual sidelines in agriculture had reached 86 per cent; the non-State economy accounted for half of the gross domestic product, and the number of employed persons had reached 40 million. From 1 July 1994 the second phase of the privatization programme was launched. This phase of privatization was characterized by a shift from unremunerated privatization to remunerated privatization, and a shift from the pursuit of political objectives to a focus on economic efficiency and the stimulation of productive investment. [4]
The main industrial sectors
1. Fuel and power industry
The fuel and power industry is a powerful industrial sector based on Russia's own resources, and Russia's reserves of coal, oil, natural gas, peat, and uranium are among the largest in the world. The fuel power industry is one of the basic sectors of the Russian national economy, which includes the electric power industry and the fuel industry.
Russia's electric power industry consists of three systems: thermal power stations, hydroelectric power stations and atomic power stations. since the 1990s, the number of enterprises in the electric power industry has been increasing, and the amount of electricity generated has been decreasing year by year. The share of atomic power stations in total power generation has remained between 11 and 12 percent. The share of power generated by thermal power stations is on a downward trend, and the share of power generated by hydroelectric power stations is on the rise. Among the industrial sectors, the power industry is more profitable.
Russia's fuel industry is divided into oil, gas and coal industries.
(1) Oil Industry
The focus of oil extraction in the USSR shifted from the west to the east, from the Baku field in Azerbaijan to the Volga-Ural region after World War II, and then to the east in the 1970s to the Tyumen region of Western Siberia, which has the largest, and among the world's largest, oil field in all of Russia, the Samotlor. The Tyumen region accounts for 66 percent of all oil extracted in Russia.
JSC Rosneft (РОСНЕФТЬ), founded in September 1995, is a state-controlled oil company, formerly the Ministry of Petroleum of the USSR and Rosneft. In 1996 the company had oil reserves of 1,483 million tons, oil production of 13 million tons, oil processing capacity of 4.5 million tons, and in 1995 employed 69,880,000 people. The company's board of directors consists of the president and chairman of the board, state ministries, subsidiaries, and local administrators*** 12 people. Rosneft has 8 oil production companies, 9 refineries, 12 oil marketing companies and others. 12 subsidiaries are: (1) Arkhangelsk Geological Company (Архангелскгеолдобыча), which is engaged in oil exploration, development, and processing. (2) Krasnodar Petroleum Organic Synthesis Company (Краснодарнефтеоргсинтез), founded in 1950, is engaged in petroleum exploration, development and processing, and currently employs 1,497 people. (3) Moscow Oil and Lubricants Plant (Московский завод для нефти и смазок), founded in 1925, currently employs 366 people. (4) Термнефть (Термнефть), engaged in various studies and experiments related to thermal recovery. (5) **** Castle Oil Refinery (Комсомольский НПЗ), founded in 1950, located in the Amur Region **** Castle, currently employs 916 people. (6) Pour Oil and Gas Company. (7) Stavropol Oil and Gas Company. (8) Krasnodar Oil and Gas Company. (9) Kalem Oil Company. (10) Dagestan Oil Company. (11) Sakhalin Offshore Oil and Gas Company. (12) Tuapse Oil Refinery. In addition, Rosneft has a number of foreign cooperation agencies, including the Central Geophysical Foreign Exploration Company and the Oil and Gas Computing Center. The scope of business is oil, gas and other mineral deposits census, exploration, development, transportation and processing; production of petroleum products, petrochemicals and other products; sales of oil, petroleum products and other products; investment activities (including securities business); foreign trade, import and export business; fulfillment of the orders of the consumers of the federal states and regions. [5]
East Siberian Oil and Gas Joint Stock Company (ВОСТСИБНЕФТЕГАЗ), founded in April 1994, operates in the field of geophysical exploration, regional exploration and detailing, drilling, development, and oil and gas supply. The Company's Board of Directors consists of the Chairman of the Board of Directors, officials of state ministries, local administrations and representatives of subsidiaries*** 9 persons. East Siberian Oil and Gas Company has three subsidiaries: the Yenisei Geophysical Company, located in Yeniseisk; the Yenisei Oil and Gas Geological Company, located in Krasnoyarsk; and the East Siberian Oil and Gas Marketing Company. [6]
(2) Natural gas industry
There are 17 natural gas extraction zones throughout Russia***. The Tyumen Oblast is the most concentrated and largest gas extraction area in Russia, accounting for 92% of the total gas extraction. The gas industry is relatively stable. Natural gas reserves are concentrated in the Orenburg field in the Urals and in five fields in Western Siberia: Malengyi, Yamburg, Zapolyar, and Medvezhye. The natural gas extraction industry is highly concentrated, with 85% of the extraction being carried out by three large companies, all of which extract more than 50 billion cubic meters per year.
Gazprom (Газпром), established after the collapse of the Soviet Union on the basis of the USSR's Ministry of Natural Gas Industry, is Russia's largest natural gas producer and the world's largest natural gas company in terms of reserves and extraction volumes. There are two companies with an annual extraction volume of 10 to 50 billion cubic meters, seven companies with an annual extraction volume of 1 to 10 billion cubic meters, and 16 smaller companies with an annual extraction volume of less than 1 billion cubic meters. Gazprom's domestic gas supplies have accounted for more than half of Russia's total energy supplies, and annual gas exports to Western Europe amount to about 120 billion cubic meters, with foreign exchange earnings of more than $15 billion, and it controls 24% of the European gas market. In addition, about 80 billion cubic meters are exported annually to the CIS countries. Gazprom operates in the areas of natural gas exploration, development, production, processing, storage, transportation, and marketing, as well as in a variety of businesses, including tourism, agriculture, aviation, and telecommunications. Gazprom's gas and condensate fields are exploited by the company, which accounts for more than 95% of Russia's total production. There is a complete monopoly on the production and sale of natural gas. Gazprom inherited the unified gas supply system of the Soviet Union, with 21 gas production enterprises, 9 research institutes, 6 engineering bureaus, 6 service companies, and a total of 360,000 employees in directly owned enterprises and subsidiaries. The unified gas supply system of the Soviet period was huge, including 200 gas and condensate fields; 226,000 kilometers of gas transmission lines; 407 compressor stations with a total installed power of 59 million kilowatts; 46 underground reservoirs with a total effective capacity of 80 billion cubic meters; 4,500 distribution stations; and 6 gas processing plants. The dispatch center of the unified gas supply system is in Moscow. After the collapse of the Soviet Union, the unified gas supply system operated as usual, with the relevant facilities outside Russia, leased by Gazprom. In addition to the CIS countries, joint ventures are conducted with about 70 companies in Europe, America, Africa and other regions. [7]
(3) Coal Industry
Russia is rich in coal resources, its proven recoverable reserves accounted for 12% of the world's total reserves, second only to the U.S. and China ranked third, with predicted reserves of more than 50,000 million tons. Coal varieties are relatively complete, from long flame coal to lignite, all types of coal are available. Russia's main coal bases are the Kuznets mine in Western Siberia, the Bzaura mine in northeastern Europe, the Kansk-Achinsk mine in Eastern Siberia, and mines in the suburbs of Moscow. Large coking coal bases are in Kuznets and Bertsaura. Larger open-pit coal bases are the Kolkino, Bogoslosk, and Volchansk mining districts in the Urals; the Kansk-Achinsk, Irkutsk, and Kuznetsk coalfields in Siberia; and Lechkha and Sakhalin in the Far East. In the coal industry, large and medium-sized coal mines predominate. There are six small coal mines with an annual mining capacity of less than one million tons; 14 coal mines with an annual production of one to five million tons; 10 coal mines with an annual production of five to ten million tons; and nine large coal mines with an annual production of more than ten million tons. [8]
The biggest drawback of Russia's coal resources is that the regional distribution is extremely unbalanced, with more than 3/4 of them distributed in the Asian part of Russia, the coal-producing areas are far away from the industrial areas with large demand for coal, and the backwardness of transportation restricts the development of the coal industry. The low profitability of the coal industry also affects its own development. after the 1960s, the USSR had vigorously developed open-pit coal mining. since the 1990s, the share of open-pit coal mining in Russia's total coal production has declined. The geographic distribution of the European part of the reserves is as follows: 46.5% of the reserves are in central Russia, i.e. the Kuzbass coalfield; 23% of the reserves are in the Krasnoyarsk Krai, almost all of which are lignite and suitable for open-pit mining. There is also a portion of power coal in the Komi*** and State (8.2 billion tons), Rostov Oblast (6.5 billion tons) and Irkutsk Oblast (5.5 billion tons).
Coal is the main fuel for several large geo-economic zones of Russia, including Eastern Siberia, Western Siberia, the Far East and the Urals. Individual regions of these economic zones, such as Primorsky Krai in the Far East, suffer from chronic fuel shortages, which constrain their economic development and adversely affect the employment of their labor force, the standard of living of their inhabitants, and social protection. Only seven of Russia's geo-economic zones are coal-producing regions, and five are coal-consuming regions. Of the seven coal-producing regions, three - Western Siberia, Eastern Siberia and the North Caucasus - are practically completely self-sufficient in coal. The other four regions, especially the Urals and the Far East, require a portion of their coal to be transported out of the country. The variety and quality of coal required by these regions is not sufficient for the amount of self-produced coal alone. As a result, about 1/4 of the annual coal production, about 40 to 50 million tons, needs to be transferred between regions, with an average distance of 1,000 kilometers and the longest distance of 3,000 kilometers. The policy of reforming the Russian coal industry was introduced in 1993. Since 1993, market competition in the Russian coal industry has been formed, which ensured the needs of units with the ability to pay. At that time private coal companies capable of self-financing also appeared.
The coal industry has 72 coal-producing joint-stock companies (excluding subsidiaries), of which 24 are federal stockholding companies and six state coal mining complexes. The main problem of the Russian coal industry is the decreasing production capacity of existing shaft mines and open-pit mines. According to the Institute of Economics of the Russian Academy of Sciences, in the future the price of natural gas will continue to rise, while after the reorganization of coal companies, their production costs will continue to fall, so that the price of coal in the regions should be lower than the price of natural gas. At the present stage, the main reform tasks of the coal industry are to set goals for its development in accordance with the needs of growth; to close down as fast as possible the enterprises with serious losses and solve the social problems associated with them; to develop an effective and flexible mechanism of state regulation of private coal companies. In Russia, 60% of coal production comes from private coal companies, so one of the tasks to be accomplished by the reforms is to effectively regulate the production and business operations of coal companies in a market economy. Thus, the use of underground resources, ensuring a stable and adequate supply of coal, improving legislation and regulating the scope of authority are the priorities of state regulation. Revision of the existing policy in accordance with the conditions includes: coal mine safety regulations, as well as technical operation and design quotas for coal enterprises. The Ministry of Power of Russia is called upon to intensify its efforts to regulate the coal industry, including: training of personnel, implementation of sectoral and interdepartmental programs of scientific and technological development, and initiatives to support and develop sectoral scientific research and design and manufacturing institutes. The main objectives of the Russian coal industry for the next period are to create conditions for the expansion of reproduction and to increase the potential of coal production. In accordance with the Russian Power Strategy for 2020 and the federal "Power Efficient Economy" target plan, coal production should reach 300 million tons by 2005, and by 2020 it must reach 430 million tons. In order to realize the total production capacity provided for in the development plan, by 2005, 67.14 billion rubles (at 2001 ruble prices) will have to be invested. The sources of the above-mentioned funds are both the enterprises' own funds and budgetary funds from the federal government. Extra-budgetary funds, totaling 49.42 billion rubles, will come mainly from the enterprises' own funds (depreciation commission and profits), as well as from attracted capital and bank loans.
2. Metallurgical industry
Metallurgical industry is a traditional industrial sector in Russia, which is rich in iron ore, and ferrous metallurgy is the backbone of the industry. The metallurgical industry is divided into two main categories: ferrous metallurgy and non-ferrous metallurgy. Large metallurgical centers are located in the North-West Region, the Central Region, the Urals, Kuzbass, the Volga Coast and Western Siberia. Major metallurgical enterprises include Magnitogorsk, Krivoy Rog, Novolibetsk, West Siberia, Cherepovets, Chelyabinsk, and others. The Magnitogorsk Iron and Steel Works is the largest. In the steelmaking sector, certain improvements have been made in the production process. The ferrous and non-ferrous metallurgical sectors have higher product profitability and asset profitability than the industry as a whole. Russia's nonferrous metals industry includes aluminum, nickel, lead, zinc, and copper refining industries. There is a large aluminum refinery in Ankara. Among the non-ferrous metallurgical industries, tin, antimony and mercury smelting are underdeveloped, and Russia is a country with a shortage of these non-ferrous metals.
3. Chemical and Petrochemical Industries
The layout of the chemical and petrochemical industries in Russia is also shifting from the west to the east. Russia's eastern region, especially in Siberia and the Far East has extremely rich oil and gas resources, forest resources, salt and apatite, etc., the development of the chemical industry provides favorable resource conditions. 1970s ~ 80s, in Siberia and the Far East to establish more than a dozen of oil processing plants, the annual processing capacity of the general are 6 million to 12 million tons of oil. The annual processing capacity of Omsk Oil Processing Plant, the biggest one in Russia, is 20-22 million tons of oil. The chemical and petrochemical industry of Russia is mainly divided into five sectors: basic chemistry, the products are mainly sulfuric acid, soda ash, caustic soda and fertilizers; chemical fibers and yarns; synthetic resins and plastics; synthetic rubber and tire industry. Focus on the development of fertilizers, new structural materials and chemical fibers.
4. Machine-building and metal-working industries
Machine-building is the core of Russian industry and the basis for scientific and technological progress; it provides technical equipment for industry itself and other sectors of the national economy, and plays a key role in the technological modernization of the national economy. The Soviet Union has long been developing machine-building and metalworking industries at a rate that exceeds that of the industrial sector as a whole. A characteristic feature of Russian machine-building is the high degree of concentration of production and its high degree of monopoly. According to official statistics, there are 420 monopolies in the industry as a whole, 256 of which are in machine-building. Another feature of machine-building is that its production is closely linked to militarization, with 80 per cent of machine-building enterprises associated with military production. The number of enterprises in the machine-building and metalworking sectors is increasing rapidly. The main subsectors of the machine-building industry are: heavy power and transport machinery manufacturing; electrical machinery industry; machine tool manufacturing and tool industry; electronic computer and instrument manufacturing; automobile industry; tractor and agricultural machinery manufacturing; and household appliance industry. Within the overall machine-building industry, Russia has made machine tool manufacturing, computer and instrument manufacturing, the motor industry and the electronics industry catalytic sectors for scientific and technological progress. The best-selling home appliances in the Russian consumer market fall into four main categories, namely, televisions, refrigerators, VCRs and washing machines.
By the overall economic situation, the Russian home appliance industry has been in a difficult situation. From the internal factors, due to the lack of funds, enterprises can not afford to carry out technological upgrading and transformation, self-produced home appliances of the overall competitiveness of the weak, in terms of quality, performance and appearance far behind similar imported products. From the external conditions, in the implementation of foreign trade liberalization at the same time, the government has not taken the necessary measures to protect the national industry, foreign home appliances flooded into the Russian market, resulting in a serious impact on the domestic home appliance industry. The more well-known television manufacturers are mainly concentrated in the European part, and has a number of small influential national brands. For example, "Рубин" of the Ruby Television Plant in Moscow, "Рекорд" of JSC Telecom in the Voronezh region, "Радуга" of JSC Rainbow in St. Petersburg, "Радуга" of JSC Novgorod, "Радуга" of JSC Novgorod, "Радуга" of JSC Novgorod, and "Радуга" of JSC Novgorod. "Рекорд", "Радуга" of JSC "Rainbow" in St. Petersburg, "Садко" of JSC "Quantum" in Novgorod, and so on. These brands of televisions generally use the world's popular styles and designs, the introduction of foreign major components assembled in Russia, the technical performance and appearance of the shape of a great improvement, the price level is basically the same as similar foreign products. Manufacturers of washing machines are also located in the European part of the country, for example, the Sverdlovskoye Production Combine in the Nizhny Novgorod region, the Stal Oskol plant in the Belgorod region, and the Vesta joint-stock company in the city of Kirov. Some of the best known domestic brands of washing machines on the market are Вятка-Алена, Ока-9, Фея, Малют. Ока-9", "Фея", "Малютка" and "Сибирь", etc., with manual, small capacity, soft plastic casing, while the proportion of semi-automatic and fully automatic models is less than 10%. The main users of these machines are low-income groups due to price, performance and quality. The average price of most Russian-made washing machines in Moscow city is about 30-100 dollars. The main refrigerator enterprises are JSC Gil in Moscow, JSC Esbergo in Smolensk, Orsk Mechanical Plant in the Orenburg region, Lipetsk Iron and Steel Enterprise in the Lipetsk region, and others. Domestic brands of refrigerators can be found on the market: Stinol, Зил, Саратов, Смолен, Смолен, Саратов, Смолен, Смолен, Смолен, Смолен, Смолен, Смолен, Смолен, Смолен, and others. ск", "Орск", "Ока", etc., which are sold for approximately 80-140 dollars. In accordance with the Law on Consumer Protection, Russia has introduced a system of quality and safety certification of some imported goods, which is based on compliance with safety requirements set by the state standards, and on the possession of appropriate commercial inspection certificates. Every year, Russia adjusts its import tax rates more substantially to adapt to changing market conditions. The import tax rate for home appliances is on a clear upward trend.
5. Construction materials industry
Construction materials industry is one of the traditional industrial sectors in Russia. All regions have raw materials for the production of construction materials, and the construction materials industry is mainly located in the industrially developed Central Region, the Volga River Basin and the Urals. Subsectors of the construction materials industry are: cement industry, reinforced concrete components and fittings industry, wall materials industry, construction pottery industry, construction materials made from polymerized raw materials, non-mineral construction materials industry and glass industry. In the cement production industry, there are more small enterprises (with an average annual production capacity of less than 500,000 tons), of which there are 27, which account for 48 per cent of the number of enterprises in the industry, while the production of cement accounts for 13 per cent of the total cement output. The number of large enterprises (with an average annual production capacity of more than 2 million tons) is 10, which accounts for 17.8% of the number of enterprises in this sector and 43% of the total cement production. "The Spassk Cement Plant is the largest cement producer in Russia, other large cement plants include: Mining Plant Cement Plant, Shurovsky Cement Plant, "Vorsky Cement Plant" and others.
6. Forestry, wood processing and pulp and paper industry
Russia is the world's richest country in terms of forest resources, providing a strong material resource base for the development of forest, wood processing and pulp and paper industry. This sector is also a traditional industrial sector in Russia, and the number of enterprises in this sector has been increasing year by year since the 1990s, with a significant increase in the number of enterprises in the process of privatization. The share of this sector in total productive fixed assets of industry is 4.3%, which is only higher than the 2.5% share of light industry. The main subsectors of the forest, wood-processing and pulp and paper industry are: forest harvesting industry, wood-processing industry and pulp and paper industry. There are about 3,500 furniture manufacturing enterprises in Russia, of which 550 large enterprises account for about 80% of the output value of the entire domestic furniture industry. Furniture enterprises in the country are facing difficulties on two fronts. On the one hand, high import tariffs on furniture production equipment and scarce domestic accessories prevent enterprises from carrying out technological transformation to improve product quality. On the other hand, some domestic and imported furniture raw materials as well as the rise in domestic energy prices, resulting in higher production costs, prices close to imported products, thus losing market competitiveness.
7. Light industry
Light industry has always been a weak industrial sector, which has been developing slowly with outdated and backward equipment. The light industry sector is mostly made up of small and medium-sized enterprises. The light industry sector has the smallest share of fixed assets, accounting for only 2.5 percent of all industrial sectors. The light industry sector is divided into the textile industry, sewing industry, leather, fur and shoe industry. According to forecasts for 2010, the main goal of the development of the Russian light textile industry is to increase the share of domestically produced competitive products on the domestic market to 55%. Russian light industry has the ability to maintain a leading position in the linen, wool, leather, fur and synthetic fabrics market, but clothing, knitted fabrics and shoes and other products lag behind foreign countries. In foreign markets, Russia's export products are mainly pique fabrics.
8. Food industry
The food industry mainly includes: grain food manufacturing, meat food manufacturing, dairy food manufacturing, fish products industry, sugar and candy manufacturing, various beverage manufacturing, oil and salt industry. Russia's flour industry is mainly distributed in the Volga River Basin District, the North Caucasus District and the Central Black Earth District and other major grain-producing areas, the main flour industry centers are Saratov, Chelyabinsk and Orenburg and so on. The oil and grease industry is mainly located in the main sunflower-producing regions of the North Caucasus, the Central Black Earth Region and the Volga Valley Region. The canning industry is mainly located in the Central District, the Central Black Earth Region, and the North Caucasus Region. Among them, the canned fruit and vegetable industry is concentrated in the North Caucasus Region, the canned meat and milk industry is concentrated in the Northwest Region, Kaliningrad Oblast, Central Region, Siberian Region, etc., and the canned fish industry is mainly concentrated in the Far East Region, the Northern Region and Kaliningrad Oblast, where the fishery industry is well developed. Russia, in addition to Moscow, St. Petersburg and other major cities with specialized candy and confectionery processing enterprises, general flour and grain processing enterprises also produce candy and pastry. Russia's meat products processing industry is mainly located in the Central Region, the North Caucasus Region, the Volga River Basin Region, and the West Siberian Region, which account for about more than half of Russia's meat production. Moscow and St. Petersburg are the largest meat processing centers in Russia, and their processing capacity greatly exceeds the raw material supply capacity of the region, so they have to rely on long-distance livestock transfers. Russia's sugar industry is mainly distributed in the North Caucasus region, the main source of sugar beet, as well as the Central Black Earth region and the Central Region, the main sugar production centers are Voronezh, Tula and so on.