The position of agriculture in the Russian Federation – the last two decades development overview

Abstract

The paper provides an analysis of the last two decades Russian agricultural sector development. The main objective of the paper is to highlight the main changes which occurred. The paper is also identifying the role of agriculture in the Russian economy and society development. On the basis of the results coming from the paper, it is possible to characterize the Russian agriculture as follows. After a significant decline in the early 90s and the long process of transformation, the Russian economy including agricultural sector is starting to recover and it is stabilizing. The slowdown of the Russian agricultural performance was stopped (the millstone is the year 2000). At present, the Russian agrarian sector is under the process of recovery especially because of the massive state support (market protection and subsidies coming into agriculture). Agriculture is an important part of the Russian economy. Russia is characterized by large areas of agricultural land, one third of its population lives in the rural areas. The Russian Federation produces many of agricultural products and foodstuffs. However, the country is not self-sufficient in many products. The highest level of the import dependence is observed for meat, vegetables and fruits. Primary products dominate in the structure of Russian exports. Food and agricultural products amount for about only 2% of the Russian total export. The share of agricultural products in the Russian import is more significant and it amounts to 14%. However, in 2000s, there is a significant growth of the foreign trade turnover due to the expansion of both imports and exports. Currently, Russia is seeking not only to achieve a high level of self-sufficiency in basic agricultural products, but also it is trying to be a significant driver in the area of the international trade in agricultural products and foodstufs.