RUSSIAN ECONOMY

Introduction
The economy of Russia is the ninth largest economy in the world by nominal value and the sixth largest by purchasing power parity (PPP)
The country has more higher education graduates than any other country in Europe
The largest communist country before the break-up of the Soviet Union
Russia is the world's leading natural gas exporter and the second leading oil exporter.
Oil, natural gas, metals, and timber account for more than 80% of Russian exports abroad

After the fall of the Soviet Union
Russia has tried to develop a market economy
A market economy is economy based on the division of labor in which the prices of goods and services are determined in a free price system set by supply and demand
In October 1991, Yeltsin announced that Russia would proceed with radical, market-oriented reform along the lines of «shock therapy»
In economics, shock therapy refers to the sudden release of price and currency controls, withdrawal of state subsidies, and immediate trade liberalization within a country, usually also including large scale privatization of previously public owned assets
Hyperinflation
A condition in which prices increase rapidly as a currency loses its value.

Russian Financial crisis in 1998
Corruption in the government officials
Government acting as a Mafia
The largest state enterprises were controversially privatized by President Boris
Yeltsin to insiders for far less than they were worth
Many Russians consider these infamous "oligarchs" to be thieves
a form of government in which power effectively rests with a small elite segment of society
Through their immense wealth, the oligarchs wielded significant political influence

Putin Years

Nominal Gross Domestic Product (GDP) doubled, climbing from 22nd to 11th largest in the world
The economy made real gains of an average 7% per year making it the 6th largest economy in the world in GDP(PPP)

During Putin's eight years in office, industry grew by 75%, investments increased by 125% and agricultural production and construction increased as well.
The volume of consumer credit between 2000–2006 increased 45 times
During that same time period, the middle class grew from 8 million to 55 million, an increase of 7 times
The number of people living below the poverty line decreased from 30% in 2000 to 14% in 2008
Inflation remained a problem however, as the government failed to contain the growth of prices
The Russian economy is still commodity-driven despite its growth

Payments from the fuel and energy sector in the form of customs duties and taxes accounted for nearly half of the federal budget's revenues
The large majority of Russia's exports are made up by raw materials and fertilizers, although exports as a whole accounted for only 8.7% of the GDP in 2007, compared to 20% in 2000
The income differentiation ratio shows that the 10% of Russia's rich live increasingly better than the 10% of the poor, amongst whom are mostly pensioners and unskilled workers in depressive regions

Oil Prices