Russia: preparing for the cold?
Russia is seeing its economic growth cool amid considerable geopolitical instability and the oil price crisis, with cement demand following suit. Nevertheless, the modernisation and expansion of its cement production base continues as the country’s producers jostle for a better position to challenge both domestic and import competition.
Russia’s economic expansion continues to decelerate. GDP growth in 2012 fell to 3.4 per cent and the IMF estimates GDP stagnated in 2014. For 2015, only minor growth in the region of 0.5 per cent is expected, accelerating to 1.5 per cent the year after.
The volume of construction works in Russia in the first 9M14 fell by 3.3 per cent to RUB3.96tn (US$63.5m) after registering a 1.1 per cent YoY drop in 9M13 to RUB4.1tn. While the north Caucasus, central, north west and Volga Basin regions recorded growth, the Urals, Siberia and particularly the southern part of the country saw their construction markets contract significantly.