The economy of Russia has a nominal GDP of approximately $2.0 trillion (2024), making it the 11th largest economy in the world, while by purchasing power parity (PPP) it ranks 5th at roughly $5.5 trillion. The economy is heavily resource-dependent: oil and gas generate around 60% of exports and 40% of federal revenue. Its leading industries are energy, defense manufacturing, mining and agriculture, and since 2022 its biggest trading partners have become China, India and Turkey.
Introduction
Russia's economy is defined by an unusual combination of natural-resource abundance, a large industrial base inherited from the Soviet era, and, since 2022, the deepest set of Western sanctions ever imposed on a major economy. Oil and gas remain the backbone, accounting for approximately 40% of federal revenue and 60% of exports, which leaves state finances tightly coupled to global commodity prices.
The sanctions imposed since February 2022 have significantly reshaped Russia's trade patterns and external relationships, freezing reserves and severing Western technology links. Yet the economy has proven more resilient than many forecasters expected, adapting through a sweeping reorientation of trade toward Asia. To understand how the country generates this wealth, it helps to read alongside our overview of the natural resources of Russia, which feed directly into its export economy.
GDP and Economic Overview
Russia's nominal GDP ranks 11th globally, but by purchasing power parity the economy is the 5th largest at approximately $5.5 trillion. This divergence is one of the widest among major economies: the PPP figure is nearly three times the nominal value, reflecting the ruble's depreciation and the relatively low domestic price levels for goods, services, housing and energy inside Russia.
- Nominal GDP: $2.0 trillion (2024)
- GDP per capita: $13,817
- PPP GDP: $5.5 trillion, 5th largest globally
- Federal revenue: around 40% from oil and gas
- Currency: Russian ruble (RUB)
Since 2022, Western sanctions have frozen approximately $300 billion in Russian central bank reserves, restricted access to Western technology and financial markets, and prompted a major reorientation of trade toward China, India and Turkey. Despite these pressures, the economy has shown more resilience than initially expected, supported by high energy revenues, capital controls, import substitution and a surge in state-directed military spending.
Key Industries
Russia's industrial structure is dominated by extractive and heavy industries, many of them controlled or heavily influenced by the state. The energy sector remains by far the most important, but defense, mining, agriculture and nuclear technology are all significant pillars of output and employment.
- Oil and gas: around 60% of exports, led by state giants Gazprom and Rosneft
- Defense: one of the world's largest arms exporters, building aircraft and missile systems
- Mining: metals, diamonds and coal extracted across Siberia and the Urals
- Agriculture: a wheat and grain export powerhouse
- Nuclear: Rosatom, the world's leading builder of nuclear power plants
Russia is the world's third-largest oil producer and the second-largest natural gas producer. State-owned Gazprom and Rosneft dominate the energy sector. The loss of European gas markets has been partially offset by pipeline development to China, including the Power of Siberia line, and by increased shipments of liquefied natural gas (LNG) to Asian buyers.
Beyond energy, Russia is the world's second-largest arms exporter, with defense companies producing advanced weapons systems, combat aircraft such as those built by Sukhoi, and missile technology. Rosatom is the world's leading builder of nuclear power plants, with projects spanning Asia, Africa and the Middle East. Russia has also become the world's largest wheat exporter, a status that gives it considerable influence over global food markets.
International Trade and Exports
Russia's trade patterns have undergone dramatic reorientation since 2022. China has become Russia's dominant trading partner, with bilateral trade exceeding $240 billion in 2023. India has emerged as a major buyer of Russian crude at discounted prices, while the European Union's share of Russian trade has collapsed from its pre-war dominance.
- Total exports: around $430 billion, with destinations sharply shifted post-sanctions
- Top export: crude oil and petroleum products
- Trade reorientation: a massive pivot from the EU toward China and India
- China trade: bilateral trade exceeded $240 billion in 2023
- Top partners: China (33%), India (8%), Turkey (5%)
Russia's exports remain dominated by energy commodities, including crude oil, refined products, natural gas and coal. The country has developed alternative payment systems and shipping routes, including a so-called "shadow fleet" of tankers, to circumvent Western sanctions. Technology imports that were previously sourced from Europe are now increasingly obtained from China and routed through intermediary countries.
Employment and Workforce
Russia faces a severe labor shortage, with unemployment at a historic low of 2.9%. The combination of long-term demographic decline, military mobilization and the emigration of skilled professionals since 2022 has created acute worker deficits across many industries, from manufacturing to information technology.
- Labor force: around 75 million people
- Unemployment: 2.9%, historically low and reflecting a labor shortage
- Average wage: roughly $850 per month, varying widely by region
- Brain drain: significant emigration of skilled workers since 2022
- Defense sector: expanded employment driven by higher military spending
Wages have risen significantly in real terms as employers compete for scarce workers. The defense sector has expanded employment substantially, drawing labor away from civilian industries. Regional economic disparities remain pronounced, with Moscow and Saint Petersburg far wealthier than most Russian regions. For broader context on the country's size and geography, see our Russia country guide.
How Russia Compares to Similar Nations
Russia's economic profile resembles other large, resource-rich nations more than it does the diversified economies of Western Europe. Like Saudi Arabia, Russia is a hydrocarbon superpower whose state budget rises and falls with oil prices, but Russia is far more diversified, adding defense manufacturing, nuclear technology, metals and a world-leading grain sector that the Gulf states lack.
Compared with Brazil, another commodity giant and fellow BRICS member, Russia leans more heavily on energy and minerals than on agriculture and consumer industries, and its PPP-to-nominal gap is wider. Against China, its dominant trading partner, the contrast is stark: China is a manufacturing and consumer powerhouse with a far larger and more diversified economy, while Russia increasingly serves as a supplier of discounted raw materials and energy. This asymmetry leaves Russia more exposed to commodity cycles and more dependent on a single partner than peers with broader export bases.
Key Facts
- Economic rank: 11th largest economy by nominal GDP, 5th by PPP
- Nominal GDP: approximately $2.0 trillion (2024)
- Energy dependence: oil and gas are around 60% of exports and 40% of federal revenue
- Top trading partner: China, with bilateral trade exceeding $240 billion in 2023
- Unemployment: 2.9%, the lowest in recorded Russian history
- Agriculture: the world's largest wheat exporter
- Currency: Russian ruble (RUB)
Frequently Asked Questions
How large is the economy of Russia?
Russia's nominal GDP is approximately $2.0 trillion as of 2024, ranking it 11th in the world. Measured by purchasing power parity, however, the economy is the 5th largest at roughly $5.5 trillion, reflecting low domestic price levels and the ruble's depreciation.
What are Russia's main exports?
Energy commodities dominate, with crude oil and petroleum products as the top export, followed by natural gas and coal. Oil and gas together account for around 60% of total exports, supplemented by metals, diamonds and wheat.
How have sanctions affected the Russian economy?
Sanctions imposed since 2022 froze roughly $300 billion in central bank reserves and cut off much Western technology and financing. They triggered a major reorientation of trade toward China, India and Turkey, but the economy has proven more resilient than expected rather than collapsing.
Who is Russia's biggest trading partner?
China is now Russia's dominant trading partner, with bilateral trade exceeding $240 billion in 2023 and accounting for about 33% of Russian trade. India and Turkey have also become major partners, particularly as buyers of discounted Russian oil.