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The Far East is Russia’s largest region and occupies 36.4% of the entire
Russian territory, while its population accounts for only 5% of the national total. In social and economic terms, the region plays a minor role on the national scene generating slightly over 6% of GDP. The percentages of the regional industrial and agricultural output in the national total are 4.3% and 5%. These figures indicate that the percentage of the tertiary sector in the region is comparatively high.
The RFE territory may be subdivided into three zones by degree of economic development: southern, central and northern. The southern zone includes the Primorsky Krai and the southern areas of the Khabarovsky Krai, Amurskaya Oblast and Sakhalin. This is the best developed part of the Russian
Far East generating more than 60% of the region’s GDP. The mainstays of its economy are fishing, forest and mining sectors as well as the communication sector. The middle zone includes the northern areas of the Khabarovsky Krai, Amurskaya Oblast, Sakhalin and the south of Sakha (Yakutia). In the second half of 1990s, this zone was characterized by a certain stability of industrial production largely dependent on the raw-material specialization of industrial branches. In the northern zone, occupying more than 40% of the region’s territory, the bulk of industrial output is generated by extractive branches. This zone accounts for 15% of the regional GDP.
The largest percentage of the regional GDP is produced by Sakha (24%). It is followed by Primorye (22%) and the Khabarovsky Krai (21%). The rest regions play a less significant role in the RFE economy: the Amurskaya and Sakhalinskaya Oblasts - 11% each, Kamchatka and Magadan - 5% each, the Jewish Autonomous Oblast and Chukotsky Okrug - 1% each.
The social indicators of the RFE economy reflect difficulties typical of Russia as a whole. Thus, unemployment rate is 9.3%, varying from 4.4% in the Magadanskaya Oblast to 15.7% on Sakhalin.
The percentage of economically active population is 9% of Russia’s total.
The structure of employment reflects the general trend toward deindustrialization of economy: employment in industry and construction dropped to 30% from 40% . Employment in the farming sector is about 5% compared with 7% in 2000 which shows little change and is explained by adverse climatic conditions. Correspondingly, the percentage of employed in the tertiary sector (services) has grown and exceeded 60%.
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Ex. 1. Find English equivalents in the text:
крупнейший регион России, его население составляет, по социальным и экономическим показателям, чуть больше, сравнительно высокий, разделять, степень экономического развития, во второй половине 90-х, определенная стабильность, занимать больше 40%, добывающая отрасль, остальные регионы, играть менее значительную роль, для России в целом, общее направление.
Ex. 2. Insert prepositions:
1.Its population accounts … only 5% of the national total.
2.The RFE territory may be subdivided … three zones … degree of economic development: southern, central and northern.
3.In the second half … 1990s, this zone was characterized … a certain stability … industrial production.
4.The rest regions play a less significant role … the RFE economy.
5.The social indicators … the RFE economy reflect difficulties typical …
Russia as a whole.
6.It is explained … adverse climatic conditions.
Ex. 3. Expand the following:
1.The Far East is Russia’s largest region.
2.The RFE territory may be subdivided into three zones.
3.The social indicators of the RFE economy reflect difficulties typical of Russia as a whole.
Vocabulary:
entire – общий
output – объем производства
GDP – gross domestic product – валовой внутренний продукт mainstays – основа
the tertiary sector – обслуживающий сектор raw material – сырье
extractive branches - добывающие отрасли significant – значительный
to reflect – отражать
unemployment rate – уровень безработицы to drop – падать, снижаться
to compare – сравнивать to exceed – превышать
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EXTRA INFORMATION ON THE ECONOMY
OF THE RUSSIAN FAR EAST
Resource Potential
The Russian Far East is endowed with rich natural resources unique in many respects. It has Russia’s largest reserves of some traditional raw materials and minerals: antimony, boron, tin (up to 95% of national reserves), fluorspar and mercury (up to 60%), about 24% of tungsten and 8-10% of iron ore, lead, sulfur, apatite. There is the world’ largest diamond province located in the northwest of
Sakha, which collectively contain more than 80% of Russian diamond reserves. Proved reserves of iron ore in south Yakutia amount to over 4 billion tons (80% of regional reserves). Considerable iron ore reserves are also found in Jewish Autonomous Oblast. Major coal deposits are found in Lensky and YuzhnoYakutsky areas (Sakha), the Amurskaya Oblast, Primorye and the Khabarovsky
Krai. The RFE is one of Russia’s most important gold producing areas. Vein and placer deposits and found in Sakha, Magadanskaya and Amurskaya Oblasts, the Khabarovsky Krai and Kamchatka.
Fuel and energy resources include oil and gas, brown and black coals. Main oil and gas reserves are found in two vast oil and gas provinces: Sakhalinskaya (major offshore gas and oil fields) and Leno-Viluyskaya (natural gas). The last one contains over 60% of RFE’s natural gas reserves.
Nonmetallic mineral reserves are also available: limestones, marl, refractory clays, quartz sands, sulfur, graphite. Mica deposits are found in the upper reaches of the Aldan River.
Mineral waters suitable for health remedial uses are found in all RFE administrative territories. Best-known are mineral spas in Shmakovka and Kuldur. There are geysers associated with volcanic activity on Kamchatka. The water of hot springs contains zinc, antimony, arsenic and has a remedial significance which opens up good opportunities for establishing resorts.
The most important biological resources are fish and seafood. There are the world’s largest stocks of salmon and codfish (cod, Alaska pollack, ‘navaga’ cod, hake) in the Pacific seas surrounding the Russian Far East (Bering Sea, Sea of Okhotsk, Sea of Japan), which are also inhabited by seals, walruses, fur seals.
The region’s forest resources account for 35% of the national total.
Agriculture
The region’s farming sector generates 5% of Russia’s gross agricultural output. The input of individual RFE territories in agricultural production depends on differing natural and climatic factors. Leaders in the farming sector are the Amurskaya Oblast (23%) and Primorye (18%) followed by Sakha and
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the Khabarovsky Krai (less than 18% each), Kamchatka (10%), Sakhalin (8%), Jewish AO (about 3%).
The region’s geographic position and related environmental conditions constrain the normal development of agriculture in the most part of its territory. Land area amounts to more than 600 million ha and is composed of three main types: forested land (44%), reindeer pasture (30%) and barren land (22%). Farm land accounts for no more than 1% of the region’s land resource.
The climate of the northern RFE is suitable for cultivating potatoes and some less delicate vegetables as well as for developing dairy farming. Also, crops are grown in hot-houses. More than 55% of agricultural production is concentrated in the central and southern parts of Primorye, in the Amurskaya and Jewish Autonomous Oblasts and in the south of the Khabarovsky Krai. Still, these areas have inadequate conditions for satisfying local demand for basic food products, and the farming sector here is specialized in the production of non-transportable (perishable) products. Natural conditions are suitable for growing grain (wheat, barley, oats, corn), vegetables, rice. Many experts assess the region’s potential for crops cultivation as considerable and explain the low productivity of this sector by insufficiency of capital investments.
Animal husbandry accounts for more than 60% of the total agricultural output. This branch includes the breeding of dairy and beef cattle, swine, poultry (broilers and egg-layers), reindeer and deer for antlers, apiculture; private households breed also rabbits and sheep. Unlike crops production, the output of animal husbandry is distributed proportionately to the numbers of population in individual RFE territories. Commercial animal husbandry is based on large mechanized farms, including fur animal breeding farms and nurseries.
Industry
The proportion of the secondary sector (processing industries) in the RFE economy has decreased during 1990s, it was undergoing structural changes accompanied by more than two-fold drop of production in absolute terms. The percentage of machine-building and metalworking has decreased from 15.5% to 8.4%, while that of the energy and fuel branches has grown from 3.5% to 25.1% and from 3.8% to 11.5% respectively. The share of nonferrous metallurgy went up by 47%, and that of food processing, logging, woodworking and building materials reduced. These structural changes have been caused by the unevenness of the reduction of real production volumes in respective branches.
The fuel and energy complex of the Russian Far East is composed of the fuel industry (oil, gas and coal production), oil processing industry, energy and heat providers. It is the region’s largest industrial complex and generates about
35% of the total industrial output. Recession in the coal industry corresponded to the nationwide decline - production volume fell from 51.6 to 31.6 million tons.
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The Trans-Baikal showed a better dynamic of coal production: in Buryatia decline was only 7.2% and in the Chitinskaya Oblast 18.4% growth was registered. Trans-Baikal inclusive, the Russian Far East’s total coal production volume amount about 19% of the national total.
Oil production reached 1.78 million tons in which was an 88% increase on 1990. Natural gas production amounts to 3.4 billion cubic meters.
Other commercially available energy resources are hydropower and nuclear power.
There is great potential for use of non-traditional sources of energy which might fully satisfy local demand. However, they generate only less than 0.1% of total electricity output. The structure of energy production is dependent on the available resources: about 70% is derived from coal, oil, natural gas and hydropower.
The region’s two oil refineries are found in the Khabarovsky Krai (Khabarovsk and Komsomolsk-on-Amur). The bulk of oil is delivered from West Siberia by rail. Oil from Sakhalin comes to Komsomolsk-on-Amur by pipe (some 10%). The depth of oil refining is rather low: 60-65%.
Electric energy is produced by general-use, power plants generating more than 93% of electricity and local plants. There are several joint-stock companies providing and conveying energy and a special division, VostokEnergo, Amurskaya, Dalnevostochnaya and Khabarovskaya energy systems, YuzhnoYakutsky energy area and the eastern part of Chitinskaya energy.
Heat energy is produced by heat-and-power stations and boilerhouses. The total length of main heat and steam lines was exceeding 11,000 kilometers and the number of boiler-houses was above 15,000.
Power plants provide about 35% of heat, the rest is produced by boilerhouses. Basic type of fuel for boiler-houses and plants is coal, although some regions (Kamchatka, Primorye, the Khabarovsky Krai) use much fuel oil and diesel oil.
RFE is Russia’s largest fish and seafood producer. Fish processing is developed mainly in the onboard form.
The fishery complex is composed of fish and seafood catchers, processors, specialized facilities and services, fish stock reproduction organizations. Close linkages interconnect different parts of this complex with each other and with other economic sectors. It is serviced by a large number of specialized branches such as shipbuilding, ship repair, ports, transport and reefer fleet, manufacturers of fishing gear, packing materials, etc. Auxiliary services (procurement, sales, communications, construction and others) provide support both to fish producers and specialized services involved.
The forest complex includes forestry, logging, woodworking and pulp-and- paper branches. This complex accounts for 5.4% of industrial production. The pulp-and-paper industry is developed poorly and represented by several mills on