3. 79,8% населения Российской Федерации составляют этнические русские, 3,8% — татары, 2% — украинцы, 1,2% — башкиры, 1,1% — чуваши, 0,8% — армяне. 4. Недавно в России появился еще один слой государственной власти — федеральные округа. Четыре из них находятся в Европе и три в Азии. 5. В России чрезвычайно низкая средняя плотность населения из-за ее огромных размеров. 6. Русский язык является единственным официальным языком в Российской Федерации. 7. Российская Федерация состоит из 89 субъектов Федерации (на 2005 год).

Exercise 42. What aspects of Russian geography* history, culture, science and arts are not present in the Text? Prepare your own presentation about Russia.

Text В. Economy of Russia

The Soviet Union had a centralized state control over virtually all means of production, exchange, distribution and investment. The Soviet Union also had a planned economy. Economic policy was made according to directives from the Communist Party, which controlled all aspects of economic activity.

Russia undertakes the transition to fully-developed market economy with challenges and obstacles. However, Russian economy has great potential for growth. Russia possesses huge supplies of many of the world's most valued natural resources, especially those required to support a modern industrialized economy. It also has a well-educated labour force with substantial technical expertise. At the same time, Soviet-era management practices, old infrastructure, and inefficient supply systems hinder efficient utilization of those resources.

Russia ended 2004 with its fifth year of growth, averaging 6.5% annually since the financial crisis of 1998. Although high oil prices and a relatively cheap ruble are important factors of these economic successes, since 2000 investment and consumer-driven demand have played a noticeably increasing role.

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Real fixed capital investments have averaged gains greater than 10% over the last four years and real personal incomes have increased over 12% on average. Russia has also improved its international financial standing since the 1998 financial crisis, with its declining national debt.

Strong oil export earnings have allowed Russia to increase its currency reserve. These achievements, along with a renewed government effort to advance structural reforms, have raised business and investor confidence in Russia's economic prospects.

Nevertheless, serious problems exist. Oil, natural gas, metals, and timber account for more than 80% of exports, leaving the country vulnerable to swings in world prices. Russia's manufacturing base is dilapidated and must be replaced or modernized if the country is to achieve considerable economic growth. Other problems include a weak banking system, a poor business climate that discourages domestic and foreign investors, corruption, local and regional government intervention in the courts, and widespread lack of trust in institutions.

GDP: Purchasing power parity $1,282 trillion

GDP — real growth rate: 7.3% (2003 est.)

GDP — per capita: purchasing power parity $8,900

GDP — composition by sector: agriculture: 5.2% industry: 35.1% services: 59.8% (2003 est.)

Population below poverty line: 25% Oanuary 2003 est.)

Inflation rate (consumer prices): 13.7% (2003 est.)

Labor force: 71.68 million (2003 est.)

Labor force — by occupation: agriculture 12.3%, industry 22.7%, services 65% (2002 est.)

Unemployment rate: 8.5% plus considerable underemployment (2003 est.)

Budget: revenues: $83.99 billion expenditures: $73.75 billion

Public debt: 34.1% of GDP (2003)

Agriculture — products: grain, sugar beets, sunflower seed, vegetables, fruits; beef, milk

Industries: complete range of mining and extractive industries producing coal, oil, gas, chemicals, and metals; all forms of machine building from rolling mills to high-performance aircraft and space vehicles; shipbuilding; road and rail transportation equipment; communications equipment; agricultural machinery, tractors, and construction equipment; eleptric power generating and transmitting equipment; medical and scientific instruments; consumer durables, Textiles, foodstuffs, handicrafts

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Industrial production growth rate: 7% (2003 est.)

Electricity — production: 915 billion kWh (2003)

Electricity — consumption: 773 billion kWh (2001)

Electricity — exports: 21.16 billion kWh (2001)

Electricity — imports: 7 billion kWh (2001)

Oil — production: 7.286 million bbl/day (2001 est.)

Oil — consumption: 2.595 million bbl/day (2001 est.)

Natural gas — production: 580.8 billion cu m (2001 est.)

Natural gas — exports: 205.4 billion cu m (2001 est.)

Natural gas — imports: 32.7 billion cu m (2001 est.)

Exports: $134.4 billion (2003 est.)

Exports — commodities: petroleum and petroleum products, natural gas, wood and wood products, metals, chemicals, and a wide variety of civilian and military manufactures

Exports — partners: Germany 7.8%, Netherlands 6.5%, Italy 6.3%, China 6.2%, Belarus 5.7%, Ukraine 5.7%, US 4.6%, Switzerland 4.4% (2003)

Imports: $74.8 billion (2003 est.)

Imports — commodities: machinery and equipment, consumer goods, medicines, meat, sugar, semifinished metal products

Imports — partners: Germany 14%, Belarus 8.6%, Ukraine 7.7%, China 5.8%, US 5.2%, Kazakhstan 4.7%, Italy 4.2%, France 4.1% (2003)

Reserves of foreign exchange & $76.94 billion (2003) gold:

Debt — external: $175.9 billion (2003)

Currency: Russian ruble (RUR)

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Questions to the Text

1.What are the characteristics of the economy of the Soviet

Union?

2.How was the economic policy made in the Soviet Union?

3.How does Russia undertake the transition to capitalism?

4.What are the assets of Russian economy?

5.What does hinder the efficient utilization of the resources?

6.How does Russian economy perform since the year 2000?

7.What is the role of consumers in the economic rebound?

8.What is said about the foreign reserves?

9.Why is Russian economy vulnerable to swings in oil prices?

10.What are the problems of Russian economy?

Exercise 43. Translate the following sentences into Russian.

1. The Soviet Union had a planned economy with a centralized state control. 2. Russia undertakes the transition to the fully-developed market

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economy and democracy. 3. The Communist Party controlled production, distribution and investiment by directives. 4. Russian economy has great potential for growth. 5. Russian labour force is well-educated and has substancial technical expertise. 6. One of the obstacles to the transition to fully-developed market economy is Soviet-era management practices and corruption. 7. Personal incomes have increased substantially since 2000. 8. The Russian Federation improved its international financial position because of the economic growth and declining national debt. 9. Oil export earnings allows Russia to increase its currency reserves. 10. Exports of natural resources account for more than 80% of exports.

Exercise 44. Write sentences with the following words and expressions:

•production;

•exchange;

•distribution;

•investment;

•economic activity;

•market economy;

•with challenges and obstacles;

•potential for growth;

•supplies of natural resources;

•substantial expertise;

•utilization of resources;

•economic rebound;

•gains.

Exercise 45. Translate the following sentences into English.

1. Экономика Советского Союза была плановой и централизованной. 2. Экономическая политика вырабатывалась согласно директивам партии, которая контролировала производство, распределение и обмен товаров. 3. Существует много проблем на пути перехода России к полностью развитой рыночной экономике. 4. Российская Федерация владеет огромными запасами природных ресурсов, которые

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