Although the Russian economy is currently weak, now is an opportune time to restructure it through shifting the focus of the industrial sector. The U.S., which was in a similar situation during the 2008 financial crisis, has gradually recovered through revitalizing its manufacturing industry by shifting the focus from the synthetic economy to the real economy. The same could apply to Russia today if it takes advantage of this golden opportunity to revive its manufacturing industry under the guidance of the government and the state.
Another sector Russia should shift its focus on is its Agriculture industry. Although the devaluation of the Rouble has led to a dramatic increase in the export of Russian agricultural products, the scale is not large enough to prevent Chinese corporations from passing-off Russian produce. Made-in-China flour and honey are often shipped to Suifen River for repackaging and eventually sold as “Russian” produce.
Russia’s Deputy Minister announced that Russia intends to raise the volume of its food exports to China to 300,000 - 350,000 tons by 2017, and to 700,000 - one million tons in the following years. These goals may potentially be met if Russia starts sowing with modernized agricultural equipment such as “smart farming”, “smart irrigation” and pesticides.
Additionally, numerous Chinese corporations, including China’s Xinjiang Production & Construction Group and Beidahuang Trade Group, have expressed great interest in investing in Russian agriculture. Therefore, it appears that the Russian agriculture sector has great potential in being a very lucrative industry.
(Source: Sputnik International)