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Construction materials: a core story

Overview

The construction materials industry exemplifies many of the central features of the investment-led expansion into which the Russian economy is now well and truly launched. First, strong organic demand is boosted by the catch-up effect from Soviet-era backwardness – in this case, the supply of decent quality residential and commercial buildings. Second, the pressure from demand on the price of investment goods has been aggravated by monopolization. In particular, cement price...

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