×
Enjoying ad-free content?
Since July 1, 2024, we have disabled all ads to improve your reading experience.
This commitment costs us $10,000 a month. Your support can help us fill the gap.
Support us
Our journalism is banned in Russia. We need your help to keep providing you with the truth.

Sanctions and China Gas Deal Boost Russia's Industrial Output

Industrial production in Russia was nearly double analysts' expectations for October, according to figures released this week by state statistics service Rosstat.

Overall industrial production was up 2.9 percent in October, compared with the same period last year, growing for the second consecutive month after flat production in August, the report said.

Analysts cited by news agency Interfax earlier said the growth would be in the 1.5 percent range, while analysts questioned by Reuters predicted a 1.6 percent increase in production output.

Production of meat and poultry were among the biggest contributors to overall growth, rising by 15 percent and 10 percent respectively. Their success was in part tied to a drive for import substitution, after Russia banned some food imports from nations that had sanctioned Moscow over its role in the Ukraine crisis.

Energy industry production was another strong driver of growth. Pipeline production grew by 30 percent and gas turbines manufacturing surged 91 percent, following a $400 billion gas supply contract Russia concluded with China in May. Construction of the 4,000-kilometer Power of Siberia pipeline started in September as part of the deal.

Analysts questioned by business daily Kommersant, however, said the current output growth will be short-lived and will likely to come to a halt by December. If industrial manufacturing wants to maintain its currently strong growth it will need more support from the state and less reliance on imports, they said.

… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more