The Economy of Russia

Russia has been growing steadily since the financial crisis of 1998. Although high oil prices and a relatively cheap ruble initially drove this growth in 2006, since 2003 consumer demand and, more recently, investment have played a significant role.

Over the last five years, poverty has declined steadily and the middle class has continued to expand. Russia has also improved its international financial position since the 1998 financial crisis.

Oil export earnings have allowed Russia to increase its foreign reserves to the the third largest reserves in the world. Russia has also signed a bilateral market access agreement with the US as a prelude to possible WTO entry, and its companies are involved in global merger and acquisition activity in the oil and gas, metals, and telecom sectors.

Political uncertainties ahead of the elections, corruption, and widespread lack of trust in institutions continue to dampen domestic and foreign investor sentiment. Russia has made little progress in building the rule of law, the bedrock of a modern market economy.

The currency of Russia is the Ruble.