According to AREACODESEXPLORER, the Russian Federation is the largest successor state of the Soviet Union. In its current form, Russia was established on December 25, 1991. Politically, it is a semi-presidential system with a bicameral parliament, consisting of the Federation Council and the State Duma. The head of state is the president, who is now Vladimir Putin. He has been in office since 2000, with a short break in 2008-2012, when he was Prime Minister. His current term expires in 2024.
The Russian economy and the state budget depend mainly on oil and natural gas extraction and their export. Raw materials policy is under the direct control of the Russian government. Economic strategists have been trying to reduce this dependence since the early 1990s. Dependence on the export of raw materials is still high. Since the beginning of the 21st century, Russia has focused on developing its domestic industry and attracting foreign investors to fields that would create new jobs and competencies that Russian engineers and workers did not yet abound. It is partially successful, for example, all large car companies that want to operate in Russia have their production and assembly plants there. In some fields, the Russian government strongly prefers domestic manufacturers and production in Russia, in many fields (machine tools, …. ) therefore it is increasingly difficult to rely only on pure exports, and companies have to decide whether to establish a production plant in Russia or leave the market. This policy is called swapping imports or localizations. Thanks to the export of oil and other raw materials, Russia has practically permanently secured a current account surplus. It is so large that it is not threatened even with significant fluctuations in the price of oil and the ruble. The surplus is necessary for Russia to replace the outgoing capital, either in the form of dividends or the export of capital outside the territory of Russia.
Trade exchange between the Czech Republic and Russia is based on raw material and industrial historical ties, which are gradually replacing new fields that arose after the transformation of both economies. However, the Czech economy has changed much more than the Russian one, which means that small and medium-sized Czech companies with a top-quality product often fail in Russia, because they do not have enough capital and human capacity to handle such a large market. Large enterprises, which used to be the basis of our exports to Russia, no longer exist for the most part, and the role of integrators and engineering has also often been taken over by foreign companies. This makes deliveries from the Czech Republic, especially of an investment nature, very complicated, and it also strongly reduces the margin. Although the Czechia still has the advantage of a good name, these ties are gradually weakening. Russia is also gradually being discovered by companies without previous historical ties, in recent years, for example, in the field of telecommunications and the Internet, consulting, legal services or cosmetics. The success of our companies in Russia is strongly helped by the background in the form of Czech House Moscow, where PaulTrade and CzechInvest agencies are also located. Despite all the changes and turbulence, the structure of our trade is changing only gradually – the main items of Czech exports to Russia are engineering products and means of transport, mainly oil, natural gas, chemicals and metal products go from Russia to the Czech Republic.