Fri, 18 May 2012
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|---|---|---|
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| DAX | 6290 | -0.30 |
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| ISEQ 20 | 485.06 | -0.87 |
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In part three of our Russian factbook we take an in-depth look at the country's economy.Economy
Russia has undergone significant changes since the collapse of the Soviet Union, moving from a globally-isolated, centrally-planned economy to a more market-based and globally-integrated economy. Economic reforms in the 1990s privatized most industry, with notable exceptions in the energy and defence-related sectors. Nonetheless, the rapid privatization process, including a much criticized "loans-for-shares" scheme that turned over major state-owned firms to politically-connected "oligarchs", has left equity ownership highly concentrated. The protection of property rights is still weak and the private sector remains subject to heavy state interference.
Russian industry is primarily split between globally-competitive commodity producers - Russia in 2009 became the world's largest exporter of both oil and natural gas and is also the third largest exporter of steel and primary aluminium - and other less competitive heavy industries that remain dependent on the Russian domestic market. 
This reliance on commodity exports makes Russia vulnerable to boom and bust cycles that follow the highly volatile swings in global commodity prices. The government since 2007 has embarked on an ambitious program to reduce this dependency and build up the country's high technology sectors, but with few results so far.
A revival of Russian agriculture in recent years has led to Russia shifting from being a net grain importer to a net grain exporter. The economy had averaged 7% growth since the 1998 Russian financial crisis, resulting in a doubling of real disposable incomes and the emergence of a middle class. The Russian economy, however, was one of the hardest hit by the 2008-09 global economic crisis as oil prices plummeted and the foreign credits that Russian banks and firms relied on dried up. The Central Bank of Russia spent one-third of its $600 billion international reserves, the world's third largest, in late 2008 to slow the devaluation of the rouble. The government also devoted $200 billion in a rescue plan to increase liquidity in the banking sector and aid Russian firms unable to roll over large foreign debts coming due. The economic decline appears to have bottomed out in mid-2009 and by the second half of the year there were signs that the economy was growing, albeit slowly. Long-term challenges include a shrinking workforce, a high level of corruption, and poor infrastructure in need of large capital investment.
Here’s a list of some of the groups and clubs that you can join while staying in Moscow.
Here's an introduction to our Lifestyle section for Moscow, from dating in the age of social media to shopping and gardening.
Here's a brief guide to Getting Started in Moscow, from where to go for visa and banking info to handling Russian business culture and managing a Moscow culture shock.
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