El State Statistics Service of Russia, the Rosstat, has just published the figures of the industrial production of the Russian country during last January 2015. At a general level, total industrial production increased by 0,9% compared to January 2014. It is not a big rise, but taking into account the enormous pressure that the country is undergoing at the moment they are numbers at least positive.
The truth is that things could have been much worse. However, if we go from the general level to a more specific stage, some problems begin to be detected. From sector to sector, total manufacturing fell 0,1%, while natural resource extraction and total gas, water and electricity production grew 1,5% and 1,2% respectively.
Despite the huge drop in oil prices, the russian economy it is even more dependent on resource extraction than it was a year ago.
So much so that none of the increases in food production were sufficient to offset the damage caused by sanctions on Russia. Due to the limited supply from Europe and the huge drop in the value of the ruble, food prices are growing at a rate of 20%, something that is practically out of control.
Within industrial production, the worst part was taken by the automotive sector. Tractor production fell by 9,1%, trucks by 13,6%, cars by 25,7%, buses by 29,1% and tractor trailers by 60%, all These figures are compared to January 2014. Considering how much the ruble weakened in 2014, it was expected that these figures were not so negative.
What is clear is that, at this time, the industry in Russia is in a waiting beat. On the one hand, it cannot be said that the situation is pessimistic, but neither can it be said that the situation is taking the right path. This is what Europe has to do to balance its situation with respect to the Russian country.