Despite its growth, the Russian economy remains commodity-driven with payments from the fuel and energy sections in the form of taxes and custom duties accounting for nearly 50% of the federal budget’s revenues. Raw materials and fertilizers combine to make up the large majority of Russia’s exports. Exports accounted for just 8.7% of Russia’s GDP in 2007 compared with the 20% it accounted for in 2000.
Putin’s government implemented a number of protectionist measures to boost the market share of locally produced vehicles and to support Russia’s domestic automotive industry. The government also launched programs to attract foreign producers to the country similarly to boost the domestic automotive industry. I wonder if Russia managed to lure and smd led producers to the country? Special economic zones were created by legislation in late 2005 which aimed to encourage investments by foreign automotive companies.
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