Geography and history

The Russian Federation extends from the Baltic to the Pacific, and from the Caucasus to the Arctic. The largest country in the world, it has 50 times the land area of Germany and almost twice that of the US. Three-quarters of the country’s land area is in Asia, while the rest is in Europe. Thus, Russia binds the two continents together. The climate varies dramatically from one region to another, from subtropical temperatures on the Black Sea coast to the snow- and ice-bound islands in the Arctic Sea.


Dynamic economic growth

Retail is profiting from the economic upturn in Russia. Driven by the continuing high domestic demand and due to the strong ruble, import figures have set new records. Imports in 2007 were worth around 199 billion US dollars – nearly 45 percent more than the year before. With a growth rate of around 17 percent in 2007, Russia’s exports grew considerably slower than its imports. As of 2009, the volume is even expected to decrease, while imports are to develop dynamically. One reason for this is that Russia cannot substantially raise the export volume of its most important product – crude oil. In addition to this, the country does not have any marketable export products that could replace the sale of raw materials.

Germany is trading partner number one

The most important trading partner for Russia, for imports and exports alike, is Germany. In return, Russia is also of central importance to Germany – in 2005 Russia was once again Germany’s most important trading partner in Eastern Europe for the first time since 1994. Two years later, the two countries were exchanging goods worth around 60 billion euros. By now, German exports to the Russian Federation have exceeded exports to China.

Germany’s main exports to Russia include:

• Machines and plant equipment
• Automobiles and parts
• Building materials
• Electronics and chemical products
• Food and agricultural products

The most important raw materials and goods that Russia exports to Germany are:

• Petroleum and petroleum derivatives
• Natural gas
• Iron and steel products

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