Siberia Offers Few Opportunities for Profitable Investments and So is Unlikely to Get Them, Verkhoturov Says

Paul Goble

            Staunton, May 19 – Many officials and commentators in Moscow talk about Siberia as the place where Russia’s future economic growth will take off, Dmitry Verkhoturov says; but such predications clearly exaggerate Siberia’s economic position and especially its attractiveness as a place for new investment.

            The Siberian journalist who has long focused on economic issues in Russian areas east of the Urals draws that depressing conclusion on the basis of a newly released 65-page report by Rosstat entitled The Socio-Economic Situation of the Siberian Federal District in 2025 (sibmix.com/?doc=21237).

That report shows, Verkhoturov says, that last year, the Siberian Federal District accounted for 12.9 percent of Russia’s mineral extraction; 9.8 percent of manufacturing output; 12.8 percent of energy production; and 10.4 percent of agricultural output; but only 8.2 percent of total profits and a miniscule 2.9 percent of financial investments.

Thus, he writes, “Siberia’s contribution to the Russian economy is, in reality, not particularly large. Admittedly, Siberia still fares reasonably well compared to the Southern—and especially the North Caucasian—Federal Districts; but taken as a whole, the Northwest, Volga, and Ural Districts carry significantly more weight.”

According to the journalist, “the most intriguing insights are found in the section detailing the financial results of business organizations for the period of January through September 2025. Although not covering a full calendar year, they nonetheless accurately reflect the relative profitability of the economies within the various federal districts.”

Specifically, Verkhoturov says, “out of a total net profit for the country as a whole amounting to 19.2 trillion rubles, the Siberian FD accounted for only 1.5 trillion rubles or 7.8 percent.” Given that investments tend to follow profitability, that points to serious trouble ahead for those who want to increase investment in Siberia.

Indeed, he says, “Siberia is not a particularly attractive platform for economic development,” with return on every ruble invested less than half of what it is in the Central FD. “Investing there is simply unprofitable: profits are lower, and the investment payback period is longer—not to mention the host of region-specific challenges.”

And Verkhoturov concludes: “No profitability means no investment, and consequently, no economic development. Capital flows toward those regions where it can be deployed to generate significantly higher returns—where it can grow at a faster pace … and that is why no economic development strategy for Siberia has gained traction.”