The Vologda Oblast is one of the highly-developed regions of Russia. Industry makes up the basis of the region's economy amounting for 40,0% in the structure of the gross regional product.

In the branch structure of industry, metallurgical engineering, chemical industry, timber industry, production of finished metal products, food industry, production of machinery and equipment, production and distribution of electricity, gas and water take a dominating position. The Oblast takes the second place in Russia in terms of steelmaking and rolled metal production. Every sixth tonne of Russia's rolled metal is produced in the Vologda Oblast.

Manufacturing is a major component of Vologda's industry structure (93.6%), production and distribution of electricity and gas account for 5.2% in the branch structure of industry, water supply, drainage, and disposal - 1.1%, mining - 0.1 %.

The leading industries are metallurgical production, chemical industry, wood processing and production of wood products, machinery manufacturing and equipment, food industry, provision of electricity, gas and steam.

Structure of the gross regional product in 2019:

  • manufacturing - 38.4%;
  • wholesale and retail trade; repair of motor vehicles and motorcycles - 11.2%;
  • transportation and storage - 10.8%;
  • construction - 6.3%;
  • agriculture, forestry, hunting, fishing and fish farming - 3.9%;
  • provision of electricity, gas and steam; air conditioning - 2,3%;
  • other - 27.1%.

In 2020 the volume of gross regional product reached RUR 636,3 bln.

Gross regional product, bln roubles

In terms of volume of shipped industrial products per capita the Vologda Oblast takes the 14th place in Russia and 4th in Russia's North-West. In 2020 volume of shipped industrial products per capita (RUR 665,500) exceeded the average Russian level by 47%. The basis of economy of the Vologda Oblast is industry, its share in the gross regional product is 40%.

In 2020 the volume of investments into fixed assets aimed at development of the region's economy amounted to RUR 203,6 bln, which is a 2.2% increase compared to the same period in 2019 at current prices.

Significant investment projects of the region are implemented in the industries, which are considered to be fundamental for the Vologda Region - metallurgical, chemical and timber industries.

The ferrous industry has always been the major source of revenue in the region. Over the years such industries as food processing, machine building, timber and glass industries increased production and became more competitive.

The Vologda Oblast Government gives considerable support to its agricultural sector. The region is more than self-sufficient in nearly all major products- milk, meat, eggs.

Metallurgy industry of the oblast  has always been economically-efficient and technology intensive. The town of Cherepovets is home to the Region's steel industry. Severstal is the largest producer of rolled products in Russia. It produces a wide range of hot-rolled and cold-rolled sheet steel, zinc and aluminozinc plated sheets, steel wire and steel rope, pig iron, and other iron and steel products.

Although the Vologda Oblast is first of all a metallurgical region, there is a good potential in other spheres too, such as chemical, timber and agricultural ones.

Forests occupy over 81 percent of the Vologda Region. Within the last years timber industry has been rapidly developing owing to an abundant stock of wood - 1,6 bln cu m.

The authorities of the Vologda Oblast seek to expand foreign trade and encourage technological innovation of the timber industry, supplying the sector with state-of-the-art and efficient equipment. The local government attached considerable attention to this industry by establishing an international annual "Russian Wood" Exhibition-Fair.

The Vologda Oblast has advanced mechanical engineering. The region's machine building industry includes the Vologda Bearing Plant which produces bearings, the Vologda Machine Tool Plant which manufactures technical equipment for wood processing, the Vologda Optical and Mechanical Plant specializing in optics and household electrical equipment, the Vologda Machine Building Plant producing equipment and spare parts for dairies, mini-bakeries and mini-breweries.

Engineering industry is oriented at manufacturing products that will have a ready market in Russia and abroad. Most enterprises of machine building are certified according to the highest quality standards and in agreement with ISO 9001:2000. Obtaining such a certificate is a sign for clients and customers that the services focus on quality and are run with efficiency.

Maching-building enterprises are involved in exhibition activities. Participation in fairs and exhibitions gives an opportunity to establish new business contacts and promote company's brand among customers. This is the best way to attract more potential customers.

The Vologda Region is also a region of high-intensity chemical industry. The bulk of the Region's chemical products is produced by Phosagro (Cherepovets, Vologda Region). It is a vertically integrated Russian company and one of the world’s leading phosphate-based fertilizer producers.

Glass manufacturing industry of the Vologda Oblast is represented by the following large enterprises: OOO Chagoda glass-works and Co, OOO Severnaya glassware company and an affiliate of Ruscam Glass Packaging Holding.

Over a few years the Vologda Oblast turned into a leading producer of glassware in the North-West of Russia. Every 9th bottle produced in Russia is manufactured at Vologda's glass-works. The companies produce wine, champagne, beer bottles (0,2 - 1 L), glassware for household chemical goods, chemicals and other fluids.

The Vologda Oblast is also characterized by a highly-developed agroindustrial complex. There is a growing demand for the products of the land which are grown by traditional methods and are biologically sound and additive-free. The region is more than self-sufficient in nearly all major products. It produces close to 100% of its needs for cereals, flax fibre, meat, dairy products, poultry meat and vegetables. Farmers of the Vologda area are amongst the most productive in Russia. They supply the essential foodstuffs for the region, they feed other parts of Russia as well. Leading branches of agriculture are plant growing and cattle breeding. The Vologda region is in top ten Russian regions in terms of milk and eggs production per head.

The region is highy integrated into the world economy. The Region's businesses export ferrous and non-ferrous metals, hardware, chemical products, timber and lumber, industrial machinery and other products. PAO Severstal, OAO Severstal-metiz, PhosAgro, ZAO Vologda Bearing Factory are leaders in export supplies.

A few years ago the Sheksna Industrial Park and later the Sokol industrial Park were founded in the Vologda Oblast at the intersection of the main Russian transportation lines. They are approved as an economic-technological development areas in the region. They are entitled to preferential policies as both economic and technological areas and as national-level high-tech industrial parks.

Enterprises in the industrial parks may take advantage of the preferential policies. The industrial parks encourage the development of industries and businesses which are economically efficient, high in added value and technology intensive. The industrial site of the Sokol Industrial Park covers the territory of 200 ha, 160 ha of which are free, and 40 ha are prepared for construction of a sawnwood and wood pellet producing enterprise. Within the framework of the Sheksna Industrial Park it is planned to develop the following types of activity: profound metal processing, building industry, and production of auto components.

The main purpose of the economic policy of the Vologda Oblast Government is to raise the living standards and provide stable economic development of all branches of the Oblast's economy.