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Russia

Founded in the 12th century, the Principality of Muscovy was able

to emerge from over 200 years of Mongol domination (13th-15th

centuries) and to gradually conquer and absorb surrounding

principalities. In the early 17th century, a new Romanov Dynasty

continued this policy of expansion across Siberia to the Pacific.

Under PETER I (ruled 1682-1725), hegemony was extended to the

Baltic Sea and the country was renamed the Russian Empire.

During the 19th century, more territorial acquisitions were made

in Europe and Asia. Defeat in the Russo-Japanese War of 1904-05

contributed to the Revolution of 1905, which resulted in the

formation of a parliament and other reforms. Repeated

devastating defeats of the Russian army in World War I led to

widespread rioting in the major cities of the Russian Empire and

to the overthrow in 1917 of the imperial household. The

Communists under Vladimir LENIN seized power soon after and

formed the USSR. The brutal rule of Iosif STALIN (1928-53)strengthened Communist rule and Russian dominance of the

Soviet Union at a cost of tens of millions of lives. The Soviet

economy and society stagnated in the following decades until

General Secretary Mikhail GORBACHEV (1985-91) introduced

glasnost (openness) and perestroika (restructuring) in an attempt

to modernize Communism, but his initiatives inadvertently

released forces that by December 1991 splintered the USSR into

Russia and 14 other independent republics. Since then, Russiahas shifted its post-Soviet democratic ambitions in favor of a

centralized semi-authoritarian state whose legitimacy is

buttressed, in part, by carefully managed national elections,

former President PUTIN's genuine popularity, and the prudent

management of Russia's windfall energy wealth. Russia has

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severely disabled a Chechen rebel movement, although violence

still occurs throughout the North Caucasus.

General introduction

conventional long form: Russian Federationconventional short form: Russia

Former: Russian Empire, Russian Soviet Federative SocialistRepublicGovernment type:

FederationCapital

Name: MoscowTYPE of gourment and people holding the state.

Chief of state: President Dmitriy Anatolyevich MEDVEDEVHead of government: Premier Vladimir Vladimirovich PUTINLegislative branch:

bicameral Federal Assembly or Federalnoye Sobraniye consists of an upper house, the FederationCouncil or Sovet Federatsii (166 seats; as of July 2000, members appointed by the top executiveand legislative officials in each of the 83 federal administrative units - oblasts, krays, republics,autonomous okrugs and oblasts, and the federal cities of Moscow and Saint Petersburg; membersto serve four-year terms) and a lower house, the State Duma or Gosudarstvennaya Duma (450seats; as of 2007, all members elected by proportional representation from party lists winning atleast 7% of the vote; members elected by popular vote to serve four-year terms)elections: State Duma - last held on 2 December 2007 (next to be held in December 2011)election results: State Duma - United Russia 64.3%, CPRF 11.5%, LDPR 8.1%, Just Russia 7.7%,other 8.4%; total seats by party - United Russia 315, CPRF 57, LDPR 40, Just Russia 38Judicial branch:

Constitutional Court; Supreme Court; Supreme Arbitration Court; judges for all courts areappointed for life by the Federation Council on the recommendation of the presidentPolitical parties and leaders:

A Just Russia [Sergey MIRONOV]; Communist Party of the Russian Federation or CPRF[Gennadiy Andreyevich ZYUGANOV]; Liberal Democratic Party of Russia or LDPR [VladimirVolfovich ZHIRINOVSKIY]; Patriots of Russia [Gennadiy SEMIGIN]; People's Union [SergeyBABURIN]; Right Cause [Leonid Yakovlevich GOZMAN, Boris Yuriyevich TITOV, and

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Georgiy Georgiyevich BOVT] (formed from merger of Civic Force, Democratic Party of Russia,and Union of Right Forces); United Russia [Vladimir Vladimirovich PUTIN]; Yabloko Party[Sergey Sergeyevich MITROKHIN]Political pressure groups and leaders:

Association of Citizens with Initiative of Russia (TIGR); Confederation of Labor of Russia (KTR);Federation of Independent Labor Unions of Russia; Freedom of Choice Interregional Organizationof Automobilists; Glasnost Defense Foundation; Golos Association in Defense of Voters' Rights;Greenpeace Russia; Human Rights Watch (Russian chapter); Institute for Collective Action;Memorial (human rights group); Movement Against Illegal Migration; Pamjat (preservation ofhistorical monuments and recording of history); Russian Orthodox Church; Russian Federation ofCar Owners; Russian-Chechen Friendship Society; SOVA Analytical-Information Center; Unionof the Committees of Soldiers' Mothers; World Wildlife Fund (Russian chapter)Russia has undergone significant changes since the collapse of the Soviet Union, moving from aglobally-isolated, centrally-planned economy to a more market-based and globally-integratedeconomy. Economic reforms in the 1990s privatized most industry, with notable exceptions in the

energy and defense-related sectors. Nonetheless, the rapid privatization process, including a muchcriticized "loans-for-shares" scheme that turned over major state-owned firms to politically-connected "oligarchs", has left equity ownership highly concentrated. The protection of propertyrights is still weak and the private sector remains subject to heavy state interference. Russianindustry is primarily split between globally-competitive commodity producers - in 2009 Russiawas the world's largest exporter of natural gas, the second largest exporter of oil, and the thirdlargest exporter of steel and primary aluminum - and other less competitive heavy industries thatremain dependent on the Russian domestic market. This reliance on commodity exports makesRussia vulnerable to boom and bust cycles that follow the highly volatile swings in globalcommodity prices. The government since 2007 has embarked on an ambitious program to reducethis dependency and build up the country's high technology sectors, but with few results so far. Arevival of Russian agriculture in recent years has led to Russia shifting from being a net grainimporter to a net grain exporter. The economy had averaged 7% growth since the 1998 Russianfinancial crisis, resulting in a doubling of real disposable incomes and the emergence of a middleclass. The Russian economy, however, was one of the hardest hit by the 2008-09 global economiccrisis as oil prices plummeted and the foreign credits that Russian banks and firms relied on driedup. The Central Bank of Russia spent one-third of its $600 billion international reserves, theworld's third largest, in late 2008 to slow the devaluation of the ruble. The government alsodevoted $200 billion in a rescue plan to increase liquidity in the banking sector and aid Russianfirms unable to roll over large foreign debts coming due. The economic decline appears to havebottomed out in mid-2009 and by the second half of the year there were signs that the economywas growing, albeit slowly. Long-term challenges include a shrinking workforce, a high level ofcorruption, and poor infrastructure in need of large capital investment.GDP (purchasing power parity):

$2.11 trillion (2009 est.)country comparison to the world: 8$2.291 trillion (2008 est.)$2.17 trillion (2007 est.)note: data are in 2009 US dollars

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GDP (official exchange rate):

$1.255 trillion (2009 est.)GDP - real growth rate:

-7.9% (2009 est.)country comparison to the world: 2065.6% (2008 est.)8.1% (2007 est.)GDP - per capita (PPP):$15,100 (2009 est.)country comparison to the world: 72$16,300 (2008 est.)$15,300 (2007 est.)note: data are in 2009 US dollarsGDP - composition by sector:

agriculture: 4.7%industry: 34.8%services: 60.5% (2009 est.)Labor force:75.81 million (2009 est.)country comparison to the world: 7Labor force - by occupation:

agriculture: 10%industry: 31.9%services: 58.1% (2008)Unemployment rate:

8.4% (2009 est.)country comparison to the world: 956.4% (2008)Population below poverty line:

15.8% (November 2007)Household income or consumption by percentage share:lowest 10%: 1.9%highest 10%: 30.4% (September 2007)Distribution of family income - Gini index:

42.3 (2008)country comparison to the world: 5339.9 (2001)Investment (gross fixed):

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20.2% of GDP (2009 est.)country comparison to the world: 92Budget:

revenues: $231.1 billion

expenditures: $303.6 billion (2009 est.)Public debt:

6.3% of GDP (2009 est.)country comparison to the world: 1226.2% of GDP (2008 est.)Inflation rate (consumer prices):

11.7% (2009 est.)country comparison to the world: 20014.1% (2008 est.)

Central bank discount rate:

13% (31 December 2008)country comparison to the world: 4210% (31 December 2007)Commercial bank prime lending rate:12.23% (2008 average)country comparison to the world: 8910.03% (2007 average)Stock of money:

$252.5 billion (31 December 2008)country comparison to the world: 9$303.7 billion (31 December 2007)Stock of quasi money:

$318.4 billion (31 December 2008)country comparison to the world: 13$292.5 billion (31 December 2007)Stock of domestic credit:

$367.2 billion (31 December 2008)country comparison to the world: 24$339.1 billion (31 December 2007)Market value of publicly traded shares:

$861.4 billion (31 December 2009 est.)country comparison to the world: 7$1.322 trillion (31 December 2008)$1.503 trillion (31 December 2007 est.)

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Agriculture - products:

grain, sugar beets, sunflower seed, vegetables, fruits; beef, milkIndustries:complete range of mining and extractive industries producing coal, oil, gas, chemicals, and metals;

all forms of machine building from rolling mills to high-performance aircraft and space vehicles;defense industries including radar, missile production, and advanced electronic components,shipbuilding; road and rail transportation equipment; communications equipment; agriculturalmachinery, tractors, and construction equipment; electric power generating and transmittingequipment; medical and scientific instruments; consumer durables, textiles, foodstuffs, handicraftsIndustrial production growth rate:

-11.9% (2009 est.)country comparison to the world: 149Electricity - production:

1.04 trillion kWh (2008)country comparison to the world: 4Electricity - consumption:

1.023 trillion kWh (2008)country comparison to the world: 4Electricity - exports:

20.7 billion kWh (2008 est.)Electricity - imports:3.105 billion kWh (2008)Oil - production:

9.932 million bbl/day (2009 est.)country comparison to the world: 1Oil - consumption:

2.85 million bbl/day (2009 est.)country comparison to the world: 6Oil - exports:

4.93 million bbl/day (2009 est.)country comparison to the world: 2Oil - imports:48,000 bbl/day (2008 est.)country comparison to the world: 87Oil - proved reserves:

79 billion bbl (1 January 2009 est.)country comparison to the world: 8

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Natural gas - production:546.8 billion cu m (2009 est.)country comparison to the world: 2Natural gas - consumption:

367.5 billion cu m (2009 est.)country comparison to the world: 3Natural gas - exports:

207.7 billion cu m (2009)country comparison to the world: 1Natural gas - imports:

28.4 billion cu m (2009)country comparison to the world: 10Natural gas - proved reserves:

47.57 trillion cu m (1 January 2009 est.)country comparison to the world: 1Current account balance:

$48.97 billion (2009 est.)country comparison to the world: 5$103.7 billion (2008)Exports:

$303.4 billion (2009 est.)country comparison to the world: 13$471.6 billion (2008)Exports - commodities:

petroleum and petroleum products, natural gas, grain, wood and wood products, metals, chemicals,and a wide variety of civilian and military manufacturesExports - partners:

Netherlands 10.62%, Italy 6.46%, Germany 6.24%, China 5.69%, Turkey 4.3%, Ukraine 4.01%(2009)Imports:

$191.8 billion (2009 est.)country comparison to the world: 19$291.9 billion (2008 est.)Imports - commodities:

vehicles, machinery and equipment, plastics, medicines, iron and steel, consumer goods, meat,fruits and nuts, semifinished metal products

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8/2/2019 Russia Question 3

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Imports - partners:

Germany 14.39%, China 13.98%, Ukraine 5.48%, Italy 4.84%, US 4.46% (2009)Reserves of foreign exchange and gold:

$439 billion (31 December 2009 est.)country comparison to the world: 3$426.3 billion (31 December 2008)Debt - external:

$369.2 billion (31 December 2009 est.)country comparison to the world: 20$483.5 billion (31 December 2008)Stock of direct foreign investment - at home:

$258.8 billion (31 December 2009 est.)

country comparison to the world: 19$220 billion (31 December 2007)Stock of direct foreign investment - abroad:

$226.2 billion (31 December 2009 est.)country comparison to the world: 16$180.1 billion (31 December 2008 est.)Exchange rates:

Russian rubles (RUB) per US dollar - 32 (2009), 24.853 (2008), 25.581 (2007), 27.191 (2006),28.284 (2005)

general assessment: the telephone system is experiencing significant changes; there are more than1,000 companies licensed to offer communication services; access to digital lines has improved,particularly in urban centers; Internet and e-mail services are improving; Russia has made progresstoward building the telecommunications infrastructure necessary for a market economy; theestimated number of mobile subscribers jumped from fewer than 1 million in 1998 to nearly 188million in 2008; a large demand for fixed line service remains unsatisfieddomestic: cross-country digital trunk lines run from Saint Petersburg to Khabarovsk, and fromMoscow to Novorossiysk; the telephone systems in 60 regional capitals have modern digitalinfrastructures; cellular services, both analog and digital, are available in many areas; in ruralareas, the telephone services are still outdated, inadequate, and low density

international: country code - 7; Russia is connected internationally by undersea fiber optic cables;digital switches in several cities provide more than 50,000 lines for international calls; satelliteearth stations provide access to Intelsat, Intersputnik, Eutelsat, Inmarsat, and Orbita systems.Broadcast media:

6 national TV stations with the federal government owning 1 and holding a controlling interest in asecond; state-owned Gazprom maintains a controlling interest in a third national channel;government-affiliated Bank Rossiya owns controlling interest in a fourth and fifth, while the sixth

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8/2/2019 Russia Question 3

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national channel is owned by the Moscow city administration; roughly 3,300 national, regional,and local TV stations operating with over two-thirds completely or partially controlled by thefederal or local governments; satellite TV services are available; 2 state-run national radionetworks with a third majority-owned by Gazprom; roughly 2,400 public and commercial radiostations

The buissness which is the future best buissness in russia:

In russia telecommunication and Broadcasting media channel is the best buissnes in

the next few decades due to its fastest growing sector and contributing almost to the

economy and giving the most bmargine then all other busness in russia.