Russian government's drug reimbursement program encouraged increase in drug consumption and sales

Between 2003-2008, Russia witnessed robust economic growth, attributed mainly to strong ruble and high oil prices in the international market. The growth was also supported by surge in domestic demand and increased investment in the country.

All this had a positive impact on the health care industry which experienced strong growth over these years, according to a new report from Frost & Sullivan. However, in 2009, the domestic and global slowdown began to affect the health care industry as well. There was a drastic increase in the prices of drugs.

Russia's stable macroeconomic growth in the last couple of years can be mainly attributed to high oil prices in the global market. The economy benefited from a spurt in output, driven by the rise in domestic demand, increase in investments, and political stability. However, the global economic downturn of 2008 caused the economy to shrink in the first and second quarter of 2009. In response to this situation, the Russian government allocated more than $90.00 billion in stimulus package in 2008 and 2009 to strengthen the financial sector, support the economy and protect the most vulnerable sections of the society. The economy is on the path to recovery and consequently, the Russian health care industry is also experiencing significant growth.