Natural resources remain a crucial part of Russia’s economy and play a role in its projection of power abroad. Domestically, resource rents (profits) accounted for 16.7% of Russia’s GDP as of 2024. As with most of the world’s economies, Russia’s services sector has grown to be its largest, now accounting for 56.9% of GDP. However, resources play an outsized role in maintaining the Russian state. Russia’ Audit Chamber reports that Russia’s Mineral Extraction Tax accounts for 18.7% of government revenues but, taking into account a broader range of taxes and revenue sources, also asserts that 49.4% of revenues come from the oil and gas industry alone.
In 2019, Russia’s Ministry of Natural Resources estimateed that Russia’s proven resources for which development permits had been issued were worth $873 billion dollars. Russia’s total mineral wealth is estimated in the tens of trillions. Concentrating taxation on this large and relatively easy-to-track revenue source, Russia has been able to maintain relatively low corporate profit tax (15-20%) and personal income taxes (a 13% flat tax for all but the wealthiest Russians). As a strength abroad, much has been made of Russia’s use of resources as both a stick and carrot in its foreign policy.
Russia’s reliance on its resources have made those resources obvious targets for US sanctions. New deposits have indeed been slow to develop within Russia and sanctions have been cited as a possible cause. The Central Bank’s high interest rates, maintained as part of a program to keep inflation low, and now to help make the country “bulletproof” against outside geopolitical shocks, have also been cited. Nearly every Russian hydrocarbon and metals company has had to navigate sanctions – either directly or indirectly – as detailed below.
Russia’s resources are not just oil and gas. Russia also has major deposits of metals and minerals, timber supplies, and vast amounts of land. While much of that land is under permafrost, Russia ranks #3 in arable land supplies and is rising is world rankings for agricultural producers.
The listing below takes a wide view of Russia’s resources, markets, and companies as well as covers some of the political implications of these topics.
I. Russian Resources and Related Companies
Russian resource markets have been turbulent in recent years. Company mergers and recent discoveries of new deposits have kept statistics, names, and ownership in constant flux. The 2022 invasion of Ukraine has also led several nations to raise tariffs or place embargoes on Russian imports or sanction resource extraction or processing companies. This has significantly rearranged world markets and export routes.
The following information is current as of at least 2022. Many resource statistics were taken from the 2024 edition of USGS mineral commodity summary.
Aluminum
Aluminum is obtained from alumina, which itself is obtained from bauxite ore. Russia controls less than 2% of the world’s bauxite reserves but produces approximately 5.4% of all aluminum. This is possible in large part due to Russia’s relatively cheap supplies of electricity. Aluminum is used in food packaging, as well as in constructing commercial airliners, space shuttles, and fighter jets.
Rusal, Russia’s largest aluminum producing company, controls 5.5% of the world’s aluminum production (it also owns smelters in Africa). It is now the third largest aluminum producing company in the world. In April 2024, the United States and United Kingdom prohibited the import of Russian-origin aluminum and limited its use in global metal exchanges as a response to the war in Ukraine.
Diamonds and Other Gemstones
Russia is a world leader in both natural diamond and artificial diamond production. In volume, Russia controls 32.4% of the global gem diamond mine production and an estimated 40% of the global mine production of industrial grade diamonds. In 2021, Russia was also the third-largest producer of synthetic industrial diamond.
Alrosa is Russia’s diamond monopoly. Federal, regional, and local governments own about 66% of the company, with the rest held by employees and other investors. The company is worth nearly 5 billion USD and received 3 billion USD in revenue in 2023. Although revenue increased, net profit fell by 15% in 2023. This comes in the face of US sanctions on Alrosa and the April 2022 ban on imports of rough and finished diamonds. An EU and G7 ban on non-industrial Russian diamonds began in January 2024.
Lev Leviev is also worth mentioning. He assisted the former Soviet Union in setting up its diamond enterprises in the 1980s. He later took over several of them in Central Asia in the 90s. He positioned himself as a major competitor for DeBeers, undercutting the cartel and, at one time, controlling as much as one third of the world’s diamond trade. He also made a name for himself in philanthropy, distributing millions of dollars across the former Soviet states to restore synagogues and “support the restoration of the Jewish way of life.” He now holds Israeli citizenship.
Gold
Russia is considered the one of the world’s largest unexplored gold territories, with many of its sizable deposits having been relatively recently discovered. Estimates vary quite widely, but Russia is thought to have the second largest supply of unmined gold in the world, behind only Australia. Russia is currently tied for the second largest gold producer in the world and holds the fifth largest gold reserves. In 2022, Russia fixed its currency to the gold standard: 5,000 rubles now buys an ounce of gold.
The Russian government has been buying gold in enormous quantities and increasing production for about a decade in part to diversify its reserves away from the U.S. dollar in response to U.S. sanctions. Despite sanctions from the U.K, U.S. and Canada, the United Arab Emirates imported about $6.2 billion worth of Russian gold in 2022 (fifteen times more than in 2021), and Switzerland imported $4.87 billion that same year. In this way, Russia has been able to partially circumvent wartime sanctions.
Polyus is Russia’s market leader, formed when Russian metals giant Norilsk Nickel spun off its holdings in gold. Both companies at the time were owned by Interros, controlled by Russian oligarchs Vladimir Potanin and Mikhail Prokhorov. Potanin sold his shares (37.9%) to Russian billionaire Suleyman Kerimov in 2009, who later bought a controlling stake. Kerimov handed control of the company to his son, Said Kerimov. Said Kerimov sold about 30% of the company’s shares to Akropol Group, a producer of industrial anthracite, and donated the rest of his shares (about 46%) to the Fund for Support of Islamic Foundations in 2022. In 2023, the Board of Directors announced a share buyback program to buy back 30% of the stake. Profit for 2023: 3.9 billion USD, a remarkable 51% rise from 2022. The company is traded on the Moscow stock exchange and has a market cap of 18.58 billion USD. It has been delisted from the New York and London stock exchanges due to sanctions.
Polymetal was, until recently, Russia’s number two gold producer, top silver producer (as well as the world’s third largest silver producer) and one of the world’s most profitable precious metals companies. But, facing sanctions, the company divested completely from Russia, selling all assets there for $3.7B in 2024 to Mangazeya Mining. The deal was considered low-valued and $2.2B of the “payment” was Mangazeya’s agreement to retain debt held by the company. Polymetal, owned by an Anglo-Russian group of investors, is now headquartered in Kazakhstan.
Mangazeya Mining rose from relative obscurity in 2024 to one of Russia’s top 20 miners when it purchased all of Polymetal’s Russian assets for just $3.7B. Mangazeya is owned by Sergey Yanchukov, a former oil trader who started his career in Ukraine and who has worked with several Ukrainian and Russian billionaires. He was the only buyer to gain approval from both western and Russian governments for the sale to go through.
Petropavlovsk regularly ranked in Russia’s top five gold producers. Although founded by English mining magnate Peter Hambro, this company focused nearly exclusively on developing Russian deposits. However, after Russia’s state-controlled Gazprombank demanded immediate repayment of a $201 million loan in 2022, the company was forced to file for administration—similar to bankruptcy in the U.S. It sold its Russia-based assets to UMMC, a Russian miner that had previously specialized in copper and zinc.
Iron, Coal, and Steel
Russia holds the world’s third largest iron ore deposits, is the sixth largest coal producer and contains coal reserves second only to the US. Russia also ranks fifth for steel production. Because of the abundance of both iron and coal, Russian steel companies have typically been some of the world’s most profitable.
Steel production was one of the early bright spots for Russia’s economy as it came back online after the collapse of the 1990s; it was quick to recover after its companies were taken over by capable managers who upgraded equipment and management to make them globally competitive. They have weathered various crises well, mostly because they are vertically integrated: holding interests in all three resources: iron, coal, and steel on Russian soil. Thus, domestic production and consumption is not hindered by sanctions today.
Sanctions have devastated Russia’s once strong export market and steel industry profits plummeted in 2022. However, certain markets like Turkey and China increased their imports of Russian steel as they were not subjected to the same level of sanctions. Domestic demand has also remained strong, especially as Russia has ramped up infrastructure and arms production.
Revenue overall has declined by 12% from 2019 to 2024. However, revenue in 2024 amounted to $74 billion, placing Russia first in Europe by revenue in the iron and steel manufacturing sector.
Novolipetsk Steel (NLMK) is Russia’s largest steel producer, with 16 million metric tons produced in 2022. In 2022, the EU imported 80% of its slabs from NLMK. Despite this, after sanctions, the company’s revenues fell only about 10% as it quickly found other buyers. In 2023, revenues recovered further to about $10B. It is controlled by Russian billionaire Vladimir Lisin, a metallurgy expert who began his career as a coal mine mechanic. The company also owns steel rolling facilities in Indiana and Pennsylvania.
Magnitogorsk Iron and Steel Works (Magnitka; MMK) produced about 13 million metric tons of steel in 2023 and posted $8.3B in revenues. The original factory was pronounced a “hero factory” of the Soviet Union for the steel it made for Soviet tanks. Today is completely held by private investors and additionally owns a steel production unit in Turkey. Magnitogorsk is also directly under US sanctions.
Evraz produced 12.5 million metric tons of steel in 2022 and had revenues of $10.2B in 2021. The company has not published an annual report since 2021, claiming that it has no auditor due to international auditing companies pulling out of Russia in early 2022. Evraz accounts for almost 100% of rail production in Russia. Although nearly all staff including management are Russian, the company is registered in Luxembourg. It holds production assets in the USA, Canada, the Czech Republic, Italy and Kazakhstan. Evraz has been sanctioned by Britain however, the US has sanctioned only one of its Russian subsidiares. Its operations abroad continue to function under special licences that spare them from Britain’s sanctions.
Severstal produced 11.3 million metric tons in 2023 and had revenues of about $8B. The company was led to its current status by Alexey Mordashov, who grew the company from the 1990s until he retired in 2015, but who remains a major shareholder. Both Mordashov and Severstal are currently under US sanctions.
Mechel is one of Russia’s major players in iron, coal, nickel, steel, and energy. Despite being under US sanctions, it posted revenue of about $4.5B in 2023.
There are dozens of other steel companies in Russia.
Oil and Gas
Russia holds proven reserves of 80 billion tons of oil and 1,688 trillion cubic feet of gas. Russia holds the number one spot for world gas reserves and is the world’s second largest producer of dry natural gas, second to the US. Russia is the world’s third largest oil producer, just behind the US and Saudi Arabia. State revenues from oil and gas accounted for nearly eight percent of the country’s GDP in 2022.
Russia made an estimated EUR 36 bn from fossil fuel exports outside the Price Cap Coalition in October-November 2023 alone. Exports to China and India have accounted for 59% (EUR 21.2 bn) of that in the 2 month period alone.
As of late 2024, Russia was reportedly considering consolidating its major oil companies (Rosneft, Gazprom Neft, and independently-owned Lukoil) into a major national “champion.” All three are under US sanctions. The new company would be grouped under Rosneft, headed by Igor Sechin, who was long cited as one of Russia’s most powerful men.
In January of 2025, Ukraine shut down the Druzhba Pipeline, which once supplied Europe with gas from Russia, earning Ukraine considerable shipping fees in the process. Most transit through Druzhba had already been shut down by 2025, however. Europe is now buying record amounts of LNG from Russia to partially offset this. Overall, Ukraine’s decision is expected to cost Russia 0.25% of GDP, Ukraine .5%, and Slovakia, which is inland and heavily dependent on the pipeline, .3%.
Gazprom is Russia’s largest company and controls about two thirds of Russia’s natural gas production and 16% of its oil production (through a subsidiary, Gazpromneft). One of the first companies to be sanctioned after 2022, its share of global gas production remains unaffected; it has held steady at about 12% for many years. However, its profits plunged in 2023, to a net loss of some $7 billion (compared with profits from 2022 of about $12 billion and estimated net income from H1 2024 of nearly $12 billion). Market uncertainty and restrictions on share trading, both created by sanctions, have led the company’s market capitalization to fall from over $100 billion in 2021 to $36 billion today. Gazprom has a monopoly on natural gas exports from Russia, but not on domestic production; both Lukoil and Rosneft also produce substantial amounts of natural gas.
Rosneft, as of 2023, accounted for 33% of Russia’s oil production and 40% of its refining capacity. For 2018, total profits were reported at 2.48 billion USD. Rosneft is majority owned by the Russian government but also a publicly traded stock. When it was first floated, Rosneft was valued at $10.4 billion, making it history’s fifth largest ever IPO ever at the time. Its value rose to $223 billion in 2021, but has fallen to $58 billion as of January, 2025. Profits, however, have increased from 2.3 trillion rubles in 2021 to just over three trillion in 2023. Rosneft became a major player in Russian oil after its controversial takeover of Yukos’ main oil production unit in 2004.
Lukoil is Russia’s largest oil company. It is vertically integrated with wells, refineries, and a chain of gas stations which has been franchised into the US under a North American subsidiary. Although Lukoil Russia is today under US sanctions, those stations are still owned by the subsidiary and allowed to continue to function under the Lukoil brand. Since sanctions, the company has expanded in Russia, acquiring additional wells, at least one refinery, and more gas stations. Net income declared for 2017 amounted to nearly $2.7 billion. For 2023, this had risen to $13 billion, even with a greatly reduced ruble value. Lukoil is unique among Russian hydrocarbon companies in that the majority of its shares are held by minority stockholders.
Surgutneftegas is another of Russia’s largest publicly traded oil companies and one of its more secretive. For many years, it prioritized stockpiling cash over growth, amassing a surprising $50 billion in liquid assets as of 2019. Some hypothesized that this is being set up as a “private welfare fund” by the state. While it has not made major acquisitions since this time, in 2022, the company has increased its oil production by 7.4% to 59.6 million tons. Financially, Surgutneftegas’s revenue peaked in 2022, exceeding 2.2 trillion Russian rubles, and only declined by 5% 2023, despite continued sanctions against it. Its market capitalization has taken a major hit, however, falling from $19 billion in 2021 to $8 billion in 2024, reflecting a 57% decline over the period.
Article: Oil Reserves by Category (Wikipedia entry)
Paladium and Less Common Metals
Russia holds the world’s fourth largest deposits of rare earth metals (electronics) but has historically only lightly exploited these reserves. Recently, however, it has announced a planned $1.5 billion investment that would allow it to compete with China, the world’s largest supplier of these resources.
Russia also produces 6.8% of the world’s nickel (used in making stainless steel and the batteries used in many hybrid cars). Russia also produces 44% of the world’s palladium (used in everything from catalytic converters to electronics to dental equipment), 4% of the world’s cobalt (essential in the construction of spacecraft and turbine engines), 4% of all cadmium (household batteries), and 2.6% of all tungsten (light bulbs, electronics, heating equipment) and 4% of copper (electrical wiring).
Nornickel (formerly Norelsk Nickel) is the world’s single largest producer of palladium and one of the largest producers of high-grade nickel. It controls the majority of Russia’s nickel, copper, and palladium production, and also produces platinum, cobalt, rhodium, silver, gold, and other metals.faces only fractured competition from within Russia. Once one of Russia’s most powerful companies, it has seen revenues and market value drop precipitously as prices for most of its metals have plummeted, driven by a glut created by expanding extraction in China and Indonesia. Also, while the company is not directly under sanctions, several companies it depends on are, making its business operations much more difficult. Interros Holding, headed by Russian billionaire Vladimir Potanin, controls a large share of Nornickel. Potanin has had to distance himself from the company as he is personally under sanctions as one of Russia’s richest men.
TriArk Mining is the primary player in Russia’s rare earth sector. A joint venture between the industrial conglomerate Rostec and billionaire Alexander Nesis, the company is developing the Tomtor rare earths deposit in Siberia’s Yakutia region, which is crucial for Russia’s ambitions to boost rare earth metal production to perhaps 10% of world production. However, the development of the Tomtor deposit has faced delays. In November 2024, President Vladimir Putin criticized the operator for these setbacks, urging increased investment or collaboration with other companies and the state.
PJSC Acron, primarily a potash producer, also operates a rare earths plant in Veliky Novgorod. This facility produces cerium, lanthanum, and neodymium, with a capacity of 200 tons of rare earth oxides annually.
Titanium and Magnesium
In 2019, Russian extracted 22% of the world’s titanium sponge supply. Titanium sponge is the major source of titanium, one of the world’s strongest metals, which is used in military vehicles, arms manufacture, nuclear power stations, aircraft and shipbuilding, and drilling equipment. Today, however, production has fallen to about 6%. Russia also produced about 5.2% of the world’s magnesium in 2019. Today, that has fallen to 2%. Magnesium is most often used to raise the melting point of alloys (but has widely varied uses in agriculture, medicine, industry, and chemistry).
VSMPO-Avisma is the world’s largest titanium company and controls all of Russia’s exported titanium. As of 2023, it still accounted for 25% of the global market. Although not under direct sanctions, most companies have begun looking for other suppliers as the fear of sanctions (or export restrictions by Russia) are great. Perhaps ironically, many companies turned to China for imports. The company is controlled by its management (which holds 50%+1 share in VSMPO-Avisma), while the Russian Technologies Corporation holds a blocking interest of 25% plus one share. It was formerly 51% held by Rosoboronexport, one of Russia’s main arms producers. VSMPO-Avisma also mines substantial amounts of magnesium.
Uranium
Russia produces 4.5% of the world’s total uranium and may control about 8% of global reserves. Russia also accounts for roughly 44% of the world’s uranium enrichment capacity, the world’s largest. Much of the uranium Russia processes has historically come from Kazakhstan, which, as of 2022 accounted for 43% of the world’s annual extraction. The US recently banned all imports of Uranium from Russia and allocated $2.4 billion to expanding US enrichment capacity.
TVEL is a private company, but wholly owned and managed by the Federal Atomic Energy Agency (FAAE). TVEL controls 100% of uranium mining in Russia, and 17% of global production. In Russia, this takes place mostly in the Chita Region by a TVEL subsidiary, the Priargunskiy Mining and Chemical Combine (PMCC). The company also holds interests in uranium mining and export in Ukraine, Kazakhstan, Mongolia, Uzbekistan, and Kyrgyzstan.
Texsnabexport (Tenex) is registered as a private company but owned and managed by the FAAE. It controls 100% of uranium exports from Russia as well as supplies various materials to factories owned by the FAAE and commercially imports specialty goods such as medical, biotech, and scientific equipment and protective clothing.
II. Agriculture in Russia
Agriculture in Russia collapsed following the fall of the USSR. For the first decade or so of independence, it suffered from under investment and problematic legislation on land ownership. The later, carried over from Soviet legislation, retained state ownership of land but was amended to allow 5-year leases to be taken from the state. This discouraged private investment, as it meant that every five years an investor would have to compete again to keep the lease on the land and investment put into it. As a result, Russia imported much of its agricultural needs from as far away as America and Argentina.
In recent years, Russia has seen a significant rise in agricultural production as long-standing problems, including land law, have been resolved. Furthermore, since 2013, state subsidies for purchases of land and agricultural machinery were introduced to directly support investment. In 2014, the government blocked agricultural imports into Russia from countries that had put Crimea-related sanctions on Russia. This reduced competition and increased demand in Russia for domestically-produced foods. Russia has since seen a steady rise in food exports and decline in imports as domestic production rises.
Since the beginning of Russia’s war with Ukraine in February 2022, Russian agricultural production and exports have continued to increase, reaching a new high of $43.5 billion export value in 2023. These gains came partially at the expense of Ukraine, which experienced a reduction in agricultural exports due to the war, resulting in gaps in the world supply able to be filled by Russia.
Crop and Livestock Production
Russia produced an estimated 91.5 million tons of wheat in 2023, making it the world’s third largest producer. Russia ranked first in sugar beet production and was the world’s seventh largest sugar producer as of 2023. Russia ranked fourth in potato production in 2022, after China, India, and Ukraine. However, in this category as well, Russia’s potential is far greater – a majority of those potatoes are still grown on small farms and even home plots – often without machinery, fertilizer, or even extensive irrigation. Approximately 35% of Russia’s arable land is currently uncultivated, meaning its future potential growth could still be significant.
Agricultural production in Russia is highly fractured, spread among hundreds of corporations and farms. However, mergers and aquistions have been brisk.
Under the USSR, the beef industry was largely a subsect of the dairy industry. When the USSR collapsed, Russia’s relatively small production of beef also collapsed. However, since then, output has increased significantly, and in 2023 Russia ranked ninth in the world for beef production and fifth in milk.
Greenhouse vegetable production is also rapidly expanding. Supported by the Russian government since 2013 as part of import substitution and food security policies, greenhouses have been widely touted as a way to grow vegetables locally for Russia’s more distant locations. Although some large greenhouses have been built in places like Yakutsk, most development has occurred in regions such as Stravopol, Krasnoyarsk, and Belgorod – all warmer areas in Russia’s southwest that have been traditionally known for agricultural production. Russia has also seen a boom in prefabricated private greenhouses – which are now a common feature at Russian dachas.
While production of most crops and foodstuffs is growing in Russia, transport remains an obstacle to greater development. Russian consumption is relatively flat, meaning that to profitably develop, more export markets are needed. While Russian ports have been steadily expanded since 2019, Russian rail and road capacity are still creating bottlenecks, especially as Russia suddenly finds itself refocusing on markets to the East and as boosted domestic tourism is increasing passenger traffic along many lines. All of this is making overland transport more difficult and expensive.
Russia also lags in regards to the digitalization of its agricultural practices, and Internet access remains limited in some rural areas. In recent years, the government has invested considerably into national projects aiming to optimize agriculture through digitalization.
Sanctions imposed by the EU and US on Russia in 2014 and 2022 do not extend to agricultural products, but nevertheless exports to the EU and US have been reduced considerably. Prior to Russia’s invasion of Ukraine, 12% of Russia’s exports went to EU countries; in 2023 this figure decreased to 6%. This has come from european wholesalers chosing to buy elsewhere as a form of risk management and also due to confusion on how sanctions affect Russian shippers. To counter the loss of EU markets, Russia now exports more to “friendly” countries, such as China and Turkey. As a result, Russia’s agricultural exports are continuing to follow a growth trend, rising in value by 4.5% between 2022 and 2023 to reach $43.5 billion in total value.
Agribusiness in Russia
Most early agribusiness companies in Russia were run by foreigners. Two companies that were historically important were Black Earth Farming, a Swedish company, and Russian Farms, a Russian group of companies chaired by a dual Russian-American citizen. Both of these firms were early entrants to Russian farming as legislation on land ownership was relaxed and were instrumental in showing that extensive investment into Russian farming could be profitable. Both were later bought out by Russian companies. Especially since 2013, Russian agrobusiness are increasingly among Russia’s largest. Many are also looking to aggressively expand and/or increase market share and/or vertically integrate.
Prior to the war in Ukraine, foreign companies, including the German CLAAS and American AGCO and John Deere, produced about half of all agricultural machinery purchased in Russia. Sanctions led these western majors to suspend operations in the country. In 2023, domestically-owned production rose to account for 61% of Russian machinery purchases.
In 2023, John Deere sold its facility in Orenburg, Russia, to the Koblik Group, formerly a Russian competitor. Meanwhile, the Russian leasing arm of Deere and Co. was purchased by the Russian private equity firm Insight Investment Group. Overall, between 2019-2024, the market size of the agricultural machinery and equipment wholesaling industry in Russia has grown by 10.4%, and worth $15.3 billion annually as of 2024.
Miratorg is currently Russia’s largest corporate land holder and fourth largest agroholding by revenue as of 2021. It began as an importer of beef and pork from Latin America, but later started its own pig farms in Russia. As of 2023, Miratorg runs about 2.7 million acres with over 900,000 cows; before 2022, Miratorg workers included ranch hands imported from America. The company is Russia’s largest producer of beef, pork, and prepared dinners and ranks in the top 10 for poultry production. It has aggressively vertically integrated itself and now runs everything from feedlots to slaughterhouses to its own chain of supermarkets, an online store, and even restaurants. It has received extensive state support in the form of subsidies and soft loans and famously got its big break in 2009 when Vladimir Putin personally intervened to assure the company received a 21 billion ruble loan.
Agrokomplex became Russia’s second largest corporate land holder, also with nearly 2.7 million acres. Agrokomplex is in the top five producers in Russia of milk, sugar, and meat.
Prodimex is Russia’s third largest corporate land holder with about 2.2 million acres. The company, however, ranks only 19th in revenue as of 2021. It is Russia’s largest sugar beet producer and also grows grain, soy, sunflowers, and corn.
Rusagro is currently Russia’s fourth largest corporate land holder and third largest agroholding by revenue as of 2021. The company is heavily diversified and ranks among Russia’s top sugar beet producers, pork producers, cheese and butter producers, and producers of fats and oils.
EkoNiva is Russia’s fifth largest corporate land holder, with over 1500 acres spread across 13 Russian regions. EkoNiva mostly focuses on dairy farming and is the leading producer of milk in Russia and Europe, although it is also a producer of beef and grows cereal and pulse crops, mainly as feed for its livestock.
Sodrugestvo was Russia’s largest agroholding by revenue for 2021. It’s officially registered in Luxembourg, but has most of its production facilities in Russia. It produces food additives, protein concentrates, food oils, soy flours, and other specialty products.
EFKO Group was Russia’s second largest agroholding by revenue in 2021, producing food products such as special purpose fats, vegetable oils, and animal feed. Despite its leading position in the industry, it does not hold a significant amount of land.
Damate is Russia’s largest producer of turkey meat. Despite the fact that, as late as 2014, turkey was exceedingly rare in Russia and many Russians had never tried it, the company has grown to produce 237 thousand tons of turkey meat in 2023 in brand-new, state-of-the-art facilities. The company is also a major producer of duck, lamb, and dairy products.
Ekokultura is Russia’s largest greenhouse vegetable producer. The company, operates 1200 acres of greenhouses across Russia and is rapidly expanding, including with plans to build new facilities in Kazakhstan and Uzbekistan. Ekokultura produces primarily tomatoes and cucumbers.
Yug Rusi is Russia’s largest producer of vegetable oil. It specializes in growing sunflowers.
III. Timber in Russia
Russia contains the world’s largest forest reserves, roughly 65% more area than second-place Brazil and over double that of third-place Canada. As of 2022, however, Russia still lags many countries, including many just a fraction of its size, in production and export values as it is using only a fraction of its sustainable capacity. Problems affecting the industry have typically included a lack of transport and processing infrastructure in wooded areas. Large-scale, illegal timber harvesting and export, most often along Russia’s porous border with China, also hampers legal timber activities.
For the decade preceding 2022, collective timber industry revenue had been steadily rising, and soared by 32% in 2021, when the first IPO in the Russian timber sector–the company Segezha Group–was held on the Russian stock market. However, sanctions on Russia imposed in July 2022 led most European buyers to look elsewhere for timber. Russia’s timber industry thus saw a decrease in revenue and a forced shift to Asian export markets; although profits rose in 2023 and early 2024, the industry has yet to reach pre-war revenue levels.
Ilim Group is by far Russia’s largest forest products company by revenue. It produces a range of products, but is largely specialized in pulp. Revenue for 2023 totaled just over 2 billion dollars.
Segezha Group ranks as Russia’s second largest forest products company by revenue. It produces packaging, plywood, sawn timber, and kit homes, amoung other offerings. Revenue for 2023 totaled about 1 billion dollars.
Arkhangelsk Pulp and Paper Mill is Russia’s third largest forest products company by revenue. It specializes in cardboard, paper, and cellulose fiber. In 2023, it earned about 446 million dollars in revenue.
Mondigroup was second largest by revenue in 2021. However, since sanctions were introduced, the UK-based firm sold off its assets to Russian firms, completing its exit from Russia in 2023. It continues to produce packaging materials and other products in 30 other countries.
IV. Freight Transport
Gazprom operates the world’s largest gas transmission network, known as The Unified Gas Supply System. It includes the controversial Blue Stream pipeline in the Black Sea and the equally controversial Nord Stream pipelines (formerly known as North European Gas Pipeline),which has greatly angered Poland for bypassing its territory and was rendered inoperable by mysterious explosions in September 2022. Gazprom has also invested in the pipelines of other countries.
Transneft is Russia’s state-run oil pipeline company and is responsible for transporting the vast majority of Russia’s crude. It is the largest oil pipeline company in the world, profiting $3.3 billion in 2023. Transneft manages the Russian section of Druzhba. Ukraine effectively shuttered that pipeline’s southern fork in January, 2025 by not extending its cooperation agreement with Russia. A northern fork of the pipeline runs through Belarus and on to Poland and Germany. It remains operational.
Caspian Pipeline Consortium is owned by Russia, Kazakhstan, and private investors. Its only pipeline carries crude oil from Tengiz, Kazakhstan to the Russian port of Novorossiysk.
Russian Railways is Russia’s state-owned railway monopoly and ships most of Russia’s non-hydrocarbon exports. It is also involved in most major resource developments, providing transport for both hydrocarbon and mineral resources. The company earned approximately 30 billion in revenue for 2023.
Many of Russia’s major resource producers have also invested in railcar-owning companies in an attempt to guarantee themselves railcar space. However, Russia faces a shortage of railcars and equipment necessary for their use as Russian industry cannot produce them fast enough. Western sanctions in place since 2022 have further impeded production by restricting imports. Demand for spare parts is also not being met domestically, especially for foreign-made railcars for which, again, imports are restricted.
Russia is also contending with capacity issues. It operates the world’s third largest rail system, but it often connects people and resources separated by exceptionally large distances, making investment more difficult and less profitable than in other countries. Regardless, the government is investing considerably, with the aims of modernizing existing railways and developing two connecting railways with China.
Sovcomflot is Russia’s largest shipping company and is specialized in shipping energy products. Originally a part of the Soviet navy, it was privatized in 1988 but remains majority owned by the state. It operates a total of 147 ships, including several LNG (liquefied natural gas) tankers. The US placed Sovcomflot under sanctions in February, 2024 in an effort to further restrict Russia’s ability to export oil. Sovcomflot blamed this for a nearly 22% drop in revenues that year.
Prisco is another ship-owning company serving Russian freight markets.
Trucking has become increasingly important as sanctions have broken normal logistics networks and rerouted much of Russian freight transport. Trucking has also been integral to helping Russia evade sanctions. Russia’s trucking industry, however, is held back by Russia’s relatively poorly developed road system and is currently not a consolidated industry.
V. Government Agencies
Note: most Russian government websites are blocked in the America and Europe.
Ministry of Natural Resources and Environment is charged with managing the country’s natural resources and protecting the environment.
The Federal Subsoil Resources Management Agency (Rosnedra) grants subsoil use (mining) licenses in conjunction with regional authorities and regulates subsoil activities. The agency funds and manages scientific studies, expeditions, and appraises the worth of subsoil resources.
The Federal Supervisory Natural Resources Management Service (Rosprirodnadzor) oversees geological surveys, exploitation and protection of natural resources, and compliance with Russian and international law. It may inspect enterprises and suggest government policies but may not charge for its services or create regulations.
Ministry of Energy (Minenergo) develops energy policies and regulations. It also oversees all Production Sharing Agreements (PSA) involving the use of subsoil resources.
Ministry of Industry and Trade (Minpromtorg) – suggests and implements state policy and manages state funds and property that pertain to “mechanical engineering, metallurgical, chemical, petrochemical, biotech, medical, light industry, timber, pulp-and-paper, woodworking, aviation, ship-building, electronics, radio, communications, ammunition and speciality chemistry, chemical disarmament, and conventional arms.”
The Federal Agency on Technical Regulating and Metrology (Rosstandart) is a federal executive body rendering state services and administering state property in the fields of technical regulations and metrology. The agency licenses those that manufacture and maintain measurement instrumentation. It also implements state regulations on metrology.
ROSATOM evolved from the Ministry of Nuclear Engineering and Industry of the USSR. It is now a state-controlled corporate conglomerate “promoting international cooperation on peaceful uses of nuclear power.” It regulates Russia’s nuclear energy complex, is a major purchaser and supplier of uranium internationally and is responsible “for meeting Russia’s commitments in the nuclear industry with a specific focus on international nuclear non-proliferation effort.” For more information, see this Wikipedia article.
The State Fund of Precious Metals and Stones for Securing, Issuing, and Utilizing Precious Metals and Stones (Gokhran), a division of the Ministry of Finance, is responsible for the government reserves of precious metals and stones. It is a major purchaser of raw diamonds and gold, and a major supplier to jewelry makers and gem finishers.
VI. Business Unions
The International Metallurgists Union is a Russia-based organization which once united metal producers from throughout the former Soviet Union and a few from other countries as well (mostly Germany). However, as of 2024, its members are overwhelmingly Russian organizations with only three European companies listed among them. The union seeks to lobby government policy as well as encourage efficient management of and cooperation between those involved in the production of metal.
Russian Union of Metal and Steel Suppliers is, in large part, a marketing organization seeking to improve the position of Russian metals at home and abroad and to educate metal producers in marketing and sales.
RosSpetsMash is a union of Russia’s producers of agricultural machinery, road construction equipment, food processing machinery, and other specialized technology. It was previously known as RosAgroMash and membership was exclusive to agricultural machinery manufacturers; however, in 2017, it expanded to include other manufacturing enterprises and nearly doubled its membership to 243 companies.
Several professional unions unite various agricultural sectors in Russia including: Russian Grain Union; Union of Russian Sugar Producers; Russian Dairy Union; Union of Russian Brewers; Russian Meat Union.
VII. Labor Unions
Russia’s Labor Union of Coal Miners represents coal miners in Russia’s major coal-producing regions. Coal miners once had one of the strongest unions under the USSR and enjoyed high wages and wide benefits throughout the Soviet era. The miners’ strikes in 1989 and 1991 proved to be important events in what would eventually be the complete dissolution of the USSR. In recent years, however, as several mines in unprofitable areas have gone bankrupt, and new mines are more automated, membership in coal miner’s unions has plummeted as has the unions’ political clout. Western sanctions from the past few years have proved catastrophic to the profitability of coal mining, with nearly half of Russian mines now operating at a loss as labor shortages plague the industry.
Russian Union of Metal Workers and Miners has been around since Tsarist times. They were last featured in the international media when contract talks with Norilsk Nickel failed and 57 of its members went on a hunger strike until the government stepped in to restart the negotiations.
Russian Oil, Gas, and Construction Workers Union is Russia’s largest with 1.2 million members. It is also one of the quietest, with no major contract disputes or strikes in recent history.
VIII. More Information and News
Neftegaz.ru delivers comprehensive information on all aspects of the oil and gas industry.
World Oil is a blog focused on oil and gas – as well as their political connections.
SteelOnTheNet.com offers substantial information about the world steel industry and markets.
Russian Jewelers Guild offers a free news service on precious metals and stones.
The National Threat Initiative is an organization devoted to reducing the threat of nuclear attacks. As part of this effort, they provide one of the most informative websites about the world uranium market.
The Aluminum Association delivers a free news service, a monthly online publication, and market analysis for the aluminum industry.
X. Events and Other Links
International Energy Week is an annual series of presentations and speeches about the Russian energy sector and approaches for international cooperation in the global market. Hosted by RosCongress, a government-affiliated Russian development institution and major organizer of large-scale conventions.
Metal-Expo is an event hosted in Russia that attracts hundreds of metals companies from all over the world every year, although in 2023 the roster was dominated by Russian and Chinese companies with only a handful from other countries.
Mining World hosts an annual exhibition of mining equipment in Moscow, which is also dominated by Russian attendees from 75 regions of the country.
Mining of Russia and CIS has been holding conferences in Russia for the past five years to promote international cooperation, investment, and development in the mining industry. It is attended largely by top executives of mining companies from Russia and other CIS countries.
International Jewelry Exhibition JUNWEX is Russia’s biggest business association at the Russian jewelry market, organizing major exhibitions of jewelry and gemstones in Moscow and Saint-Petersburg.
XI. Credits
Home and Abraod Scholars Greg Tracey and Tanya Tanyarattinan contributed to updating this resource in 2019.
Online Research Interns Alexandra Cuello and Eryn Mikulicz contributed to updating this resource in 2024.
This resource is edited by Josh Wilson and hosted by GeoHistory, a project of SRAS.org.
