Attracting private and foreign investment is becoming key for Russia as prices in oil and natural gas come under pressure for funding state projects. Russia’s transition to a modern country will also require large volumes of cement and the ramping up of production capacity is already in full swing.
Russia’s economy continues to decelerate as consumer spending, key to the country’s recovery, remains weak and the falling global demand for oil and natural gas combine with a lack of foreign and private investment. As the huge state funds that were pumped into large construction projects, such as the Sochi Winter Olympics and the Nord Stream natural gas pipeline projects, have come to an end, the US$2trn economy remains sluggish.
