The great construction projects of Putin’s Russia: the oil money


О великих стройках путинской России: на что ушли нефтяные деньги

From whatever side you look, but not to pay tribute to Putin not. He is an exceptional lucky and it is good. That’s when it Russia amazingly, fantastically lucky. Foreign trade conjuncture smiled widely oil-dependent superpower, and the world price of oil rose from 28.5 $ /Barr. in 2000 to 102$./Barr. the average for 2010-2014. And even now, despite that they are more than twice above the average of the 18-year-old.

And when you consider the comparable cost of gas, metals, and other raw materials, it is impossible not to admit that Russia got a huge bonus from world markets. It was enough to transform the country if not the next China, at least in the new Emirates, laying the foundations for economic growth for decades to come.

But what was actually built thanks to the easy oil money?

A common answer is “nothing” – a blunder and a major stretch.

The Network is haunting a lot of lists of industrial enterprises, agricultural systems and infrastructure facilities built in Russia under Putin. On the website Raexpert have a long list of Putin’s construction projects.

However, many fresh projects information, to put it mildly, outdated. For example, the construction of the Kaliningrad automobile cluster of de facto frozen until better times, and the current production runs on a third of possible. The Chinese company Lifan planned to build last year a new plant for the production of cars in the Lipetsk region, will now be limited to a small Assembly shop. And such adjustments outside the commodity sector – often. The manufacturing industry feels like Cinderella.

And raw materials producers are not going smoothly. Gazprom, the largest monopoly of the country over the years has built or is building some impressive pipes, but at the same time produced in 2017 less gas than in 1999: 472 billion against 545 billion.

“Rosneft” which has collected all the possible oil assets from Yukos to “ITERA” bought in 2013 of TNK-BP for $ 55 billion., but now only an estimated 53 billion. And if you continue talking about state-owned companies, the VEB home “Institute of development” – still a potential bankruptcy. And “Rostehnologii” – nothing without military orders, depleting the budget.

But back to the construction sites. Transport infrastructure in Russia is developing at a snail’s pace. For example roads in 2017 built 2.4 thousand km per year – almost 3 times less than in 2000. and in 2014-2016, these figures were even lower. High-speed railway for the most part remain paper projects.

Develop unless the pipelines, ports and other infrastructure for the export of raw materials. And few realized megastream from the Sochi Olympic venues to the stadiums for the world Cup-201 – serve as monuments of waste “beautiful” of the Putin era.

In fact, the great building of the past 18 years of Putin’s rule either served the needs of commodity exporters, or to satisfy the ambitions of the country’s leadership. Including – weapon: Russian military-industrial complex have received more than a trillion dollars, but this is what is called “not for people”. Throughout the rest of the huge circumstantial bonus left as water in sand.

Why Russia wasn’t so lucky with the industrial building at the most lucky from the time of Leonid Brezhnev the head of state?


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