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Line 237: − History of Russia+ − − This article covers the History of Russia from 862 AD to the present. − − Although human experience on the territory of present-day Russia dates back to Paleolithic times, the first lineal predecessor of the modern Russian state was founded in 862. The political entity known as Kievan Rus was established in Kiev in 962 and lasted until the 12th century. In the 10th century, Christianity became the state religion under Vladimir, who adopted Greek Orthodox rites. Consequently, Byzantine culture predominated, as is evident in much of Russia's architectural, musical, and artistic heritage. Over the next centuries, various invaders assaulted the Kievan state and, finally, Mongols under Batu Khan destroyed the main population centers except for Novgorod and Pskov in the 13th century and prevailed over the region until 1480. Some historians believe that the Mongol period had a lasting impact on Russian political culture. − − In the post-Mongol period, 'Muscovy gradually became the dominant principality and was able, through diplomacy and conquest, to establish suzerainty over European Russia. Ivan III (1462-1505) referred to his empire as "the Third Rome" and considered it heir to the Byzantine tradition. Ivan IV (the Terrible) (1530-1584) was the first Russian ruler to call himself tsar. He pushed Russian eastward with his conquests but his later reign was marked by the cruelty that earned him his familiar epithet. He was succeeded by his feeble son, the childless Feodor I Ivanovich who reigned from 1584-1598. Boris Godunov,the brother-in-law of Feodor, became the tsar Boris I. He ruled from 1598-1604 when he was disposed and killed, along with this wife and son, by a cabal of boyar. With the death of Boris I Russia commenced the so-called Time of Troubles which was to see further brief and bloody reigns. In 1613, after relative stability was achieved, fifteen year old Michael Romanov was selected by an assembled council of lay and ecclesiastical to be the new tsar. The dynasty that bore his name survived until 1917 with the death of Nichols II and his family. − − − During the reign of Peter the Great (1689-1725), modernization and European influences spread in Russia. Peter created Western-style military forces, subordinated the Russian Orthodox Church hierarchy to the tsar, reformed the entire governmental structure, and established the beginnings of a Western-style education system. He moved the capital westward from Moscow to St. Petersburg, his newly-established city on the Baltic. His introduction of European customs generated nationalistic resentments in society and spawned the philosophical rivalry between "Westernizers" and nationalistic "Slavophiles" that remains a key dynamic of current Russian social and political thought. − Catherine the Great continued Peter's expansionist policies and established Russia as a European power. During her reign (1762-96), power was centralized in the monarchy, and administrative reforms concentrated great wealth and privilege in the hands of the Russian nobility. Catherine was also known as an enthusiastic patron of art, literature and education and for her correspondence with Voltaire and other Enlightenment figures. Catherine also engaged in a territorial resettlement of Jews into what became known as "The Pale of Settlement," where great numbers of Jews were concentrated and later subject to vicious attacks known as pogroms. − − − Alexander I (1801-1825) began his reign as a reformer, but after defeating Napoleon's 1812 attempt to conquer Russia, he became much more conservative and rolled back many of his early reforms. During this era, Russia gained control of Georgia and much of the Caucasus. Throughout the 19th century, the Russian Government sought to suppress repeated attempts at reform and attempts at liberation by various national movements, particularly under the reign of Nicholas I (1825-1855). Its economy failed to compete with those of Western countries. Russian cities were growing without an industrial base to generate employment, although emancipation of the serfs in 1861 foreshadowed urbanization and rapid industrialization late in the century. At the same time, Russia expanded into the rest of the Caucasus, Central Asia and across Siberia. The port of Vladivostok was opened on the Pacific coast in 1860. The Trans-Siberian Railroad opened vast frontiers to development late in the century. In the 19th century, Russian culture flourished as Russian artists made significant contributions to world literature, visual arts, dance, and music. The names of Dostoyevsky, Tolstoy, Gogal, Repin, and Tchaikovsky became known to the world. − Alexander II (1855-1881), a relatively liberal tsar, emancipated the serfs. His 1881 assassination, however, prompted the reactionary rule of Alexander III (1881-1894). − [edit]1900-1917 − − By 1900, imperial decline became evident. Russia was defeated in the unpopular Russo-Japanese War in 1905. The Russian Revolution of 1905 forced Tsar Nicholas II (1894-1917) to grant a constitution and introduce limited democratic reforms. The government suppressed opposition and manipulated popular anger into anti-Semitic pogroms. Attempts at economic change, such as land reform, were incomplete. − [edit]1917 Revolution and the U.S.S.R. − The ruinous effects of World War I, combined with internal pressures, sparked the March 1917 uprising that led Tsar Nicholas II to abdicate the throne. A provisional government came to power, headed by Aleksandr Kerenskiy. On November 7, 1917, the Bolshevik Party, led by Vladimir Lenin, seized control and established the Russian Soviet Federated Socialist Republic. Civil war broke out in 1918 between Lenin's "Red" army and various "White" forces and lasted until 1920, when, despite foreign interventions and an unsuccessful war with Poland, the Bolsheviks triumphed. After the Red army conquered Ukraine, Belarus, Azerbaijan, Georgia, and Armenia, a new nation, the Union of Soviet Socialist Republics (U.S.S.R.), was formed in 1922. − − First among its political figures was Lenin, leader of the Bolshevik Party and head of the first Soviet Government, who died in 1924. − − In the late 1920s, Josef Stalin emerged as General Secretary of the Communist Party of the Soviet Union (CPSU) amidst intra-party rivalries; he maintained complete control over Soviet domestic and international policy until his death in 1953. In the 1930s, Stalin oversaw the forced collectivization of tens of millions of its citizens in state agricultural and industrial enterprises. Millions died in the process. Millions more died in political purges, the vast penal and labor system, and in state-created famines. Initially allied to Nazi Germany, which resulted in significant territorial additions on its western border, the U.S.S.R. was attacked by the Axis on June 22, 1941. Twenty million Soviet citizens died during World War II in the successful effort to defeat the Axis, in addition to over two million Soviet Jews who perished in the Holocaust. After the war, the U.S.S.R. became one of the Permanent Members of the UN Security Council. In 1949, the U.S.S.R. developed its own nuclear arsenal. − − Stalin's successor, Nikita Khrushchev, served as Communist Party leader until he was ousted in 1964. − Aleksey Kosygin became Chairman of the Council of Ministers, and Leonid Brezhnev was made First Secretary of the CPSU Central Committee in 1964. In 1971, Brezhnev rose to become "first among equals" in a collective leadership. Brezhnev died in 1982 and was succeeded by Yuri Andropov (1982-84) and Konstantin Chernenko (1984-85). − − In 1985, Mikhail Gorbachev became the next (and last) General Secretary of the CPSU. Gorbachev introduced policies of perestroika (restructuring) and glasnost (openness). But his efforts to reform the creaky Communist system from within failed. The people of the Soviet Union were not content with half-freedoms granted by Moscow; they demanded more and the system collapsed. Boris Yeltsin was elected the first president of the Russian Federation in 1991. Russia, Ukraine and Belarus formed the Commonwealth of Independent States in December 1991. Gorbachev resigned as Soviet President on December 25, 1991. Eleven days later, the U.S.S.R. was formally dissolved. − − After the December 1991 dissolution of the Soviet Union, the Russian Federation became its successor state, inheriting its permanent seat on the UN Security Council, as well as the bulk of its foreign assets and debt. By the fall of 1993, politics in Russia reached a stalemate between President Yeltsin and the parliament. The parliament had succeeded in blocking, overturning, or ignoring the President's initiatives on drafting a new constitution, conducting new elections, and making further progress on democratic and economic reforms. − − In a dramatic speech in September 1993, President Yeltsin dissolved the Russian parliament and called for new national elections and a new constitution. The standoff between the executive branch and opponents in the legislature turned violent in October after supporters of the parliament tried to instigate an armed insurrection. Yeltsin ordered the army to respond with force to capture the parliament building and crush the insurrection. In December 1993, voters elected a new parliament and approved a new constitution that had been drafted by the Yeltsin government. Yeltsin remained the dominant political figure, although a broad array of parties, including ultra-nationalists, liberals, agrarians, and communists, had substantial representation in the parliament and competed actively in elections at all levels of government. − − In late 1994, the Russian security forces launched a brutal operation in the Republic of Chechnya against rebels who were intent on separation from Russia. Along with their opponents, Russian forces committed numerous violations of human rights. The protracted conflict, which received close scrutiny in the Russian media, raised serious human rights and humanitarian concerns abroad as well as within Russia. After numerous unsuccessful attempts to institute a cease-fire, in August 1996 the Russian and Chechen authorities negotiated a settlement that resulted in a complete withdrawal of Russian troops and the holding of elections in January 1997. A peace treaty was concluded in May 1997. Following a number of terrorist incidents from Chechen separatists, the Russian government launched a new military campaign into Chechnya. By spring 2000, federal forces claimed control over Chechen territory, but fighting continues as rebel fighters regularly ambush Russian forces in the region. Throughout 2002 and 2003, the ability of Chechen separatists to battle the Russian forces waned but they claimed responsibility for numerous terrorist acts. In 2005 and 2006, key separatist leaders were killed by Russian forces. − − − On December 31, 1999 Boris Yeltsin resigned, and Vladimir Putin was named Acting President. In March 2000, he won election in his own right as Russia's second president with 53% of the vote. Putin moved quickly to reassert Moscow's control over the regions, whose governors had confidently ignored edicts from Boris Yeltsin. He sent his own "plenipotentiary representatives" (commonly called ‘polpred' in Russian) to ensure that Moscow's policies were followed in recalcitrant regions and republics. He won enactment of liberal economic reforms that rescued a faltering economy and stopped a spiral of hyperinflation. Putin achieved wide popularity by stabilizing the government, especially in marked contrast to what many Russians saw as the chaos of the latter Yeltsin years. The economy grew, both because of rising oil prices and in part because Putin was able to achieve reforms in banking, labor, and private property. During this time, Russia also moved closer to the U.S., especially after the terror attacks of September 11, 2001. In 2002, the NATO-Russia Council was established, giving Russia a voice in NATO discussions.
Reverted edits by CharlesACE (Talk) to last revision by BishoiH
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|capital =Moscow
|capital-raw =
|capital-raw =
|government =Semi-Presidential Federal federation
|government =Semi-Presidential Federal republic
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|language =Russian
|language =Russian
|pop-basis =
|pop-basis =
|gdp =
|gdp =
|gdp-year = 2.3 trillion (2009)
|gdp-year =$979 billion (2006)
|gdp-pc =$16,300 (2010)
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'''Russia''' ( a.k.a. '''Russian Federation''' (Russian: Российская Федерация, ''Rossiyskaya Federatsiya''), is the largest country by area (17,075,200 square kilometers) and has the sixth largest population. Its history stretches back over a thousand years, with rule by the Czars until 1917, and by the Communists, 1918-1991 under the name of the [[Soviet Union]]. Russia had an extensive empire built up over hundreds of years, almost all of which broke away in 1991. The capital is [[Moscow]].
'''Russia''' (formally the '''Russian Federation''' (Russian: Российская Федерация, ''Rossiyskaya Federatsiya''), is the largest country by area (17,075,200 square kilometers) and has the sixth largest population. Its history stretches back over a thousand years, with rule by the Czars until 1917, and by the Communists, 1918-1991 under the name of the [[Soviet Union]]. Russia had an extensive empire built up over hundreds of years, almost all of which broke away in 1991. The capital is [[Moscow]].
==Religion==
==Religion==
In practice, only a minority of citizens actively participated in any religion. Many who identified themselves as members of a religious group participated in religious life rarely or not at all. There is no one set of reliable statistics that breaks down the population by denomination, and the statistics below are compiled from government, polling, and religious group sources.<ref> According to [http://www.state.gov/g/drl/rls/irf/2008/108468.htm U.S. State Department, "International Religious Freedom Report 2008"]</ref>
Approximately 100 million citizens are Russian Orthodox. Muslims, with a population estimated between 14 million and 23 million, form the largest religious minority. The majority of Muslims live in the Volga-Ural region and the North Caucasus, although Moscow, St. Petersburg, and parts of Siberia also have sizable Muslim populations. There are an estimated one million Buddhists, the majority of whom live in the traditionally Buddhist regions of Buryatiya, Tuva, and Kalmykiya. According to the NGO Slavic Center for Law and Justice, Protestants make up the second largest group of Christian believers, with 3,500 registered organizations and more than 2 million followers. The Roman Catholic Church estimated that there are 600,000 Catholics, most of whom are not ethnic Russians. There are an estimated 250,000 Jews, the majority of whom live in Moscow and St. Petersburg. In some areas, such as Yakutiya and Chukotka, pantheistic and nature-based religions are practiced independently or alongside other religions.
Approximately 100 million citizens are Russian Orthodox. Muslims, with a population estimated between 14 million and 23 million, form the largest religious minority. The majority of Muslims live in the Volga-Ural region and the North Caucasus, although Moscow, St. Petersburg, and parts of Siberia also have sizable Muslim populations. There are an estimated one million Buddhists, the majority of whom live in the traditionally Buddhist regions of Buryatiya, Tuva, and Kalmykiya. According to the NGO Slavic Center for Law and Justice, Protestants make up the second largest group of Christian believers, with 3,500 registered organizations and more than 2 million followers. The Roman Catholic Church estimated that there are 600,000 Catholics, most of whom are not ethnic Russians. There are an estimated 250,000 Jews, the majority of whom live in Moscow and St. Petersburg. In some areas, such as Yakutiya and Chukotka, pantheistic and nature-based religions are practiced independently or alongside other religions.
===Religion in schools===
===Religion in schools===
The federal Government does not require religious instruction in schools, but it continues to allow public use of school buildings after hours for the ROC to provide religious instruction on a voluntary basis. Several regions offer a course on Orthodox Christianity in public schools, and five oblasts or regions (Kaluga, Tver, Bryansk, Smolensk, and Voronezh) have a mandatory class on the "Fundamentals of Orthodox Culture." Students may avoid the Belgorod Oblast voluntary course only if their parents provide and pay for an alternative course. The course is offered as an elective in several other regions. In regions where the class is not mandatory, in practice students may be compelled to take it where schools do not provide alternatives.
The federal Government does not require religious instruction in schools, but it continues to allow public use of school buildings after hours for the ROC to provide religious instruction on a voluntary basis. Several regions offer a course on Orthodox Christianity in public schools, and five oblasts or regions (Kaluga, Tver, Bryansk, Smolensk, and Voronezh) have a mandatory class on the "Fundamentals of Orthodox Culture." Students may avoid the Belgorod Oblast voluntary course only if their parents provide and pay for an alternative course. The course is offered as an elective in several other regions. In regions where the class is not mandatory, in practice students may be compelled to take it where schools do not provide alternatives.
===Discrimination===
===Discrimination===
The regions of Kabardino-Balkariya and Dagestan have laws banning extremist Islamic "Wahhabism," but there were no reports that authorities invoked these laws to deny registration to Muslim groups. The former president of the Kabardino-Balkaria republic ordered the closure of six of seven mosques in Nalchik, the region's capital, in 2004. One was reopened in 2007, while the others remained closed and were suffering from disrepair and vandalism.
The regions of Kabardino-Balkariya and Dagestan have laws banning extremist Islamic "Wahhabism," but there were no reports that authorities invoked these laws to deny registration to Muslim groups. The former president of the Kabardino-Balkaria republic ordered the closure of six of seven mosques in Nalchik, the region's capital, in 2004. One was reopened in 2007, while the others remained closed and were suffering from disrepair and vandalism.
==Demography==
==Demography==
In a major [[demography|demographic]] catastrophe, population indicators in Russia dramatically worsened after 1990: the number of [[death]]s exceeds the number of [[birth]]s, [[life expectancy]] is drastically decreasing, the number of [[suicide]]s has increased, and there are 240 abortions per 100 live births. Every year since 1992 the country has lost 400,000 to 650,000 population and the current total of 142 million is [[projection|projected]] to fall to 100 million by 2050.
In a major [[demography|demographic]] catastrophe, population indicators in Russia dramatically worsened after 1990: the number of [[death]]s exceeds the number of [[birth]]s, [[life expectancy]] is drastically decreasing, the number of [[suicide]]s has increased, and there are 240 abortions per 100 live births. Every year since 1992 the country has lost 400,000 to 650,000 population and the current total of 142 million is [[projection|projected]] to fall to 100 million by 2050.
====HIV/AIDS====
====HIV/AIDS====
Russia and Ukraine are said to have the highest growth rates of HIV infection in the world. In Russia HIV seems to be transmitted mostly by intravenous drug users sharing needles, although data is very uncertain. Data from the Federal AIDS Center shows that the number of registered cases is doubling every 12 months and is currently at 300,000 persons. When projections are made which allow for people in high-risk groups who have not been tested for the disease, estimates of the actual number of HIV-infected persons are approximately 3 million. The high growth rate of AIDS cases, if unchecked, will have negative economic consequences. Investment will suffer from the diversion of private and government funds to AIDS treatment. The effect on the labor force may be acute since about 80% of infected individuals in Russia are under 30 years of age.
Russia and Ukraine are said to have the highest growth rates of HIV infection in the world. In Russia HIV seems to be transmitted mostly by intravenous drug users sharing needles, although data is very uncertain. Data from the Federal AIDS Center shows that the number of registered cases is doubling every 12 months and is currently at 300,000 persons. When projections are made which allow for people in high-risk groups who have not been tested for the disease, estimates of the actual number of HIV-infected persons are approximately 3 million. The high growth rate of AIDS cases, if unchecked, will have negative economic consequences. Investment will suffer from the diversion of private and government funds to AIDS treatment. The effect on the labor force may be acute since about 80% of infected individuals in Russia are under 30 years of age.
===Ethnicity===
===Ethnicity===
Most of the roughly 141 million Russians derive from the Eastern Slavic family of peoples, whose original homeland was probably present-day Poland. Russian is the official language of Russia and is one of the six official languages of the United Nations. Russian is also the language of such giants of world literature as [[Pushkin]], [[Tolstoy]], [[Dostoevsky]], [[Chekhov]], [[Pasternak]], and [[Solzhenitsyn]].
Most of the roughly 141 million Russians derive from the Eastern Slavic family of peoples, whose original homeland was probably present-day Poland. Russian is the official language of Russia and is one of the six official languages of the United Nations. Russian is also the language of such giants of world literature as [[Pushkin]], [[Tolstoy]], [[Dostoevsky]], [[Chekhov]], [[Pasternak]], and [[Solzhenitsyn]].
===Education===
===Education===
Russia's educational system has produced nearly 100% literacy. About 3 million students attend Russia's 519 institutions of higher education and 48 universities, but continued reform is critical to producing students with skills to adapt to a market economy. Because great emphasis is placed on science and technology in education, Russian medical, mathematical, scientific, and space and aviation research is still generally of a high order. The number of doctors in relation to the population is high by American standards, although medical care in Russia, even in major cities, is generally far below Western standards. The unraveling of the Soviet state in its last decades and the physical and psychological traumas of transition during the 1990s resulted in a steady decline in the health of the Russian people. Currently Russia faces a demographic crisis as births lag far behind deaths. While its population is aging, skyrocketing deaths of working-age males due to cardiovascular disease is a major cause of Russia's demographic woes. A rapid increase in HIV/AIDS infections and tuberculosis compounds the problem. In 2007, life expectancy at birth was 59 for men and 73 for women. The large annual excess of deaths over births is expected to cut Russia's population by 30% over the next 50 years.
Russia's educational system has produced nearly 100% literacy. About 3 million students attend Russia's 519 institutions of higher education and 48 universities, but continued reform is critical to producing students with skills to adapt to a market economy. Because great emphasis is placed on science and technology in education, Russian medical, mathematical, scientific, and space and aviation research is still generally of a high order. The number of doctors in relation to the population is high by American standards, although medical care in Russia, even in major cities, is generally far below Western standards. The unraveling of the Soviet state in its last decades and the physical and psychological traumas of transition during the 1990s resulted in a steady decline in the health of the Russian people. Currently Russia faces a demographic crisis as births lag far behind deaths. While its population is aging, skyrocketing deaths of working-age males due to cardiovascular disease is a major cause of Russia's demographic woes. A rapid increase in HIV/AIDS infections and tuberculosis compounds the problem. In 2007, life expectancy at birth was 59 for men and 73 for women. The large annual excess of deaths over births is expected to cut Russia's population by 30% over the next 50 years.
[[Image:Russian band in Pushkin.jpg|thumb|240px|Russian band in Pushkin.]]
[[Image:Russian band in Pushkin.jpg|thumb|240px|Russian band in Pushkin.]]
===Labor force===
===Labor force===
The Russian labor force is undergoing tremendous changes. Although well educated and skilled, it is largely mismatched to the rapidly changing needs of the Russian economy. Official unemployment has shrunken in recent years to 6.9%, and labor shortages have started to appear in some high-skilled job markets. Nonetheless, pockets of high unemployment remain and many Russian workers are underemployed. Unemployment is highest among women and young people. Following the 1991 collapse of the Soviet Union and the economic dislocation it engendered, the standard of living fell dramatically. However, real disposable incomes have doubled since 1999, and experts estimate that the middle class ranges from one-fifth to one-third of the population. In 2006, 15.8% of the population lived below the subsistence level, in contrast to 38.1% in 1998.
The Russian labor force is undergoing tremendous changes. Although well educated and skilled, it is largely mismatched to the rapidly changing needs of the Russian economy. Official unemployment has shrunken in recent years to 6.9%, and labor shortages have started to appear in some high-skilled job markets. Nonetheless, pockets of high unemployment remain and many Russian workers are underemployed. Unemployment is highest among women and young people. Following the 1991 collapse of the Soviet Union and the economic dislocation it engendered, the standard of living fell dramatically. However, real disposable incomes have doubled since 1999, and experts estimate that the middle class ranges from one-fifth to one-third of the population. In 2006, 15.8% of the population lived below the subsistence level, in contrast to 38.1% in 1998.
===Statistics===
===Statistics===
*Population (2007 est.): 141.4 million.
*Population (2007 est.): 141.4 million.
*Annual growth rate (2007 est.): -0.484% (population declining).
*Annual growth rate (2007 est.): -0.484% (population declining).
*Health: Life expectancy (2007 est.)--59.12 yrs. men, 73.03 yrs. women.
*Health: Life expectancy (2007 est.)--59.12 yrs. men, 73.03 yrs. women.
*Work force (73.88 million) (2006 est.): Production and economic services--84%; government--16%.
*Work force (73.88 million) (2006 est.): Production and economic services--84%; government--16%.
==Cities==
==Cities==
Moscow is Russia's capital and largest city (population 8.3 million). Moscow is also increasingly important as an economic and business center; it has become Russia's principal magnet for foreign investment and business presence. Its cultural tradition is rich, and there are many museums devoted to art, literature, music, dance, history, and science, as well as hundreds of churches and dozens of notable cathedrals.
Moscow is Russia's capital and largest city (population 8.3 million). Moscow is also increasingly important as an economic and business center; it has become Russia's principal magnet for foreign investment and business presence. Its cultural tradition is rich, and there are many museums devoted to art, literature, music, dance, history, and science, as well as hundreds of churches and dozens of notable cathedrals.
==Defense==
==Defense==
Russia's efforts to transform its Soviet-legacy military into a smaller, lighter and more mobile force continue to be hampered by an ossified military leadership, discipline problems and human rights violations, limited funding and demographics. Recent steps by the Government of Russia suggest a desire to reform. There has been an increased emphasis on practical training, and the government is introducing bills to improve the organization of the military.
Russia's efforts to transform its Soviet-legacy military into a smaller, lighter and more mobile force continue to be hampered by an ossified military leadership, discipline problems and human rights violations, limited funding and demographics. Recent steps by the Government of Russia suggest a desire to reform. There has been an increased emphasis on practical training, and the government is introducing bills to improve the organization of the military.
[[Image:Cannon Russia.jpg|thumb|left|300px]]
[[Image:Cannon Russia.jpg|thumb|left|300px]]
The Russian Government has stated a desire to convert to a professional army, but implementation has been delayed repeatedly. Current plans envision a transition to a mixed force, in which professional soldiers fill the ranks of select units and conscription is gradually phased out. Some officials have talked of developing a non-commissioned officer corps to lead the professional army, but the military has yet to make any concrete decisions, due to internal political considerations and a backlog of other issues soaking up increased funding.
The Russian Government has stated a desire to convert to a professional army, but implementation has been delayed repeatedly. Current plans envision a transition to a mixed force, in which professional soldiers fill the ranks of select units and conscription is gradually phased out. Some officials have talked of developing a non-commissioned officer corps to lead the professional army, but the military has yet to make any concrete decisions, due to internal political considerations and a backlog of other issues soaking up increased funding.
Russia continues to maintain a sizable (around 15,000 nuclear weapons) strategic nuclear force equipped with global reach, with land, sea and air based nuclear launch facilities, though maintenance issues continue to affect the readiness of the system due to a flight of skilled personnel from the military, and financial and organisation pressures in the post-Soviet era. For this reason, Russia has sought a renewed START treaty with the United States for a mutual reduction of strategic nuclear forces. This agreement was reached between Presidents Obama and Medvedev in April 2010.
Russia continues to maintain a sizeable strategic nuclear force equipped with global reach, with land, sea and air based nuclear launch facilities, though maintenance issues continue to affect the readiness of the system due to a flight of skilled personnel from the military, and financial and organisation pressures in the post-Soviet era. For this reason, Russia has sought a renewed START treaty with the United States for a mutual reduction of strategic nuclear forces. This agreement was reached between Presidents Obama and Medvedev in April 2010.
==Economy==
==Economy==
[[Image:Historic Centre of St. Petersburg.jpg|thumb|260px|Historic Center of St. Petersburg.]]
[[Image:Historic Centre of St. Petersburg.jpg|thumb|260px|Historic Center of St. Petersburg.]]
At the end of March, 2009, the World Bank issued a grim forecast of the Russian Economy, projecting a 4.5% decline in the economy in 2009 and warning that 5.8 million Russians would fall into poverty unless the government shifts spending to poor families. It praised the government’s $85 billion anticrisis program, which stabilized Russia’s banks and prevented financial panic. But it said too little had gone to households — a hazard in a society where 37 million people, a quarter of the population, lives near the poverty line.<ref> Ellen Berry, "World Bank Grim on Russian Economy," [http://www.nytimes.com/2009/03/31/world/europe/31russia.html?ref=world ''New York Times'' Mar. 30, 2009]</ref>
At the end of March, 2009, the World Bank issued a grim forecast of the Russian Economy, projecting a 4.5% decline in the economy in 2009 and warning that 5.8 million Russians would fall into poverty unless the government shifts spending to poor families. It praised the government’s $85 billion anticrisis program, which stabilized Russia’s banks and prevented financial panic. But it said too little had gone to households — a hazard in a society where 37 million people, a quarter of the population, lives near the poverty line.<ref> Ellen Berry, "World Bank Grim on Russian Economy," [http://www.nytimes.com/2009/03/31/world/europe/31russia.html?ref=world ''New York Times'' Mar. 30, 2009]</ref>
The Russian economy underwent tremendous stress in the 1990s as it moved from a centrally planned economy to a free market system. Difficulties in implementing fiscal reforms aimed at raising government revenues and a dependence on short-term borrowing to finance budget deficits led to a serious financial crisis in 1998. Lower prices for Russia's major export earners (oil and minerals) and a loss of investor confidence due to the Asian financial crisis exacerbated financial problems. The result was a rapid and steep decline (60%) in the value of the ruble, flight of foreign investment, delayed payments on sovereign and private debts, a breakdown of commercial transactions through the banking system, and the threat of runaway inflation.
The Russian economy underwent tremendous stress in the 1990s as it moved from a centrally planned economy to a free market system. Difficulties in implementing fiscal reforms aimed at raising government revenues and a dependence on short-term borrowing to finance budget deficits led to a serious financial crisis in 1998. Lower prices for Russia's major export earners (oil and minerals) and a loss of investor confidence due to the Asian financial crisis exacerbated financial problems. The result was a rapid and steep decline (60%) in the value of the ruble, flight of foreign investment, delayed payments on sovereign and private debts, a breakdown of commercial transactions through the banking system, and the threat of runaway inflation.
====Monetary Policy====
====Monetary Policy====
Large balance of payments surpluses have complicated monetary policy for Russia. The Central Bank has followed a policy of managed appreciation to ease the impact on domestic producers and has sterilized capital inflows with its large budget surpluses. However, the Central Bank also has been buying back dollars, pumping additional ruble liquidity into the system. Given the rising demand for money, this has softened the inflationary impact, but these policy choices have complicated the government's efforts to lower inflation to the single digits. Consumer Price Index (CPI) inflation was 9% in 2006 and 10.9% in 2005, having steadily decreased from 20.2% in 2000, due primarily to prudent fiscal policy and in 2006 lower world oil prices.
Large balance of payments surpluses have complicated monetary policy for Russia. The Central Bank has followed a policy of managed appreciation to ease the impact on domestic producers and has sterilized capital inflows with its large budget surpluses. However, the Central Bank also has been buying back dollars, pumping additional ruble liquidity into the system. Given the rising demand for money, this has softened the inflationary impact, but these policy choices have complicated the government's efforts to lower inflation to the single digits. Consumer Price Index (CPI) inflation was 9% in 2006 and 10.9% in 2005, having steadily decreased from 20.2% in 2000, due primarily to prudent fiscal policy and in 2006 lower world oil prices.
====Commercial Law====
====Commercial Law====
Russia has a body of conflicting, overlapping and rapidly changing laws, decrees and regulations, which has resulted in an ad hoc and unpredictable approach to doing business. In this environment, negotiations and contracts from commercial transactions are complex and protracted. Uneven implementation of laws creates further complications. Regional and local courts are often subject to political pressure, and corruption is widespread. However, more and more small and medium businesses in recent years have reported fewer difficulties in this regard, especially in the Moscow region. In addition, Russian businesses are increasingly turning to the courts to resolve disputes. Russia's WTO accession process is also helping to bring the country's legal and regulatory regime in line with internationally accepted practices.
Russia has a body of conflicting, overlapping and rapidly changing laws, decrees and regulations, which has resulted in an ad hoc and unpredictable approach to doing business. In this environment, negotiations and contracts from commercial transactions are complex and protracted. Uneven implementation of laws creates further complications. Regional and local courts are often subject to political pressure, and corruption is widespread. However, more and more small and medium businesses in recent years have reported fewer difficulties in this regard, especially in the Moscow region. In addition, Russian businesses are increasingly turning to the courts to resolve disputes. Russia's WTO accession process is also helping to bring the country's legal and regulatory regime in line with internationally accepted practices.
====Natural Resources====
====Natural Resources====
The mineral-packed Ural Mountains and the vast oil, gas, coal, and timber reserves of Siberia and the Russian Far East make Russia rich in natural resources. However, most such resources are located in remote and climatically unfavorable areas that are difficult to develop and far from Russian ports. Nevertheless, Russia is a leading producer and exporter of minerals, gold, and all major fuels. Natural resources, especially energy, dominate Russian exports. Ninety percent of Russian exports to the United States are minerals or other raw materials.
The mineral-packed Ural Mountains and the vast oil, gas, coal, and timber reserves of Siberia and the Russian Far East make Russia rich in natural resources. However, most such resources are located in remote and climatically unfavorable areas that are difficult to develop and far from Russian ports. Nevertheless, Russia is a leading producer and exporter of minerals, gold, and all major fuels. Natural resources, especially energy, dominate Russian exports. Ninety percent of Russian exports to the United States are minerals or other raw materials.
====Industry====
====Industry====
[[Image:Tower Russia.JPG|thumb|right|180px]]
[[Image:Tower Russia.JPG|thumb|right|180px]]
Russia is the most industrialized of the former Soviet republics. However, years of very low investment have left much of Russian industry antiquated and highly inefficient. Besides its resource-based industries, it has developed large manufacturing capacities, notably in metals, food products, and transport equipment. Russia is now the world's third-largest exporter of steel and primary aluminum. Russia inherited most of the defense industrial base of the Soviet Union, so armaments remain an important export category for Russia. Efforts have been made with varying success over the past few years to convert defense industries to civilian use, and the Russian Government is engaged in an ongoing process to privatize the remaining 9,222 state-owned enterprises, 33% of which are in the industrial manufacturing sector.
Russia is one of the most industrialized of the former Soviet republics. However, years of very low investment have left much of Russian industry antiquated and highly inefficient. Besides its resource-based industries, it has developed large manufacturing capacities, notably in metals, food products, and transport equipment. Russia is now the world's third-largest exporter of steel and primary aluminum. Russia inherited most of the defense industrial base of the Soviet Union, so armaments remain an important export category for Russia. Efforts have been made with varying success over the past few years to convert defense industries to civilian use, and the Russian Government is engaged in an ongoing process to privatize the remaining 9,222 state-owned enterprises, 33% of which are in the industrial manufacturing sector.
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====Agriculture====
====Agriculture====
For its great size, Russia has relatively little area suited for agriculture because of its arid climate and inconsistent rainfall. Northern areas concentrate mainly on livestock, and the southern parts and western Siberia produce grain. Restructuring of former state farms has been an extremely slow process. Foreigners are not allowed to own farmland in Russia although long-term leases are permitted. Private farms and garden plots of individuals account for over one-half of all agricultural production.
For its great size, Russia has relatively little area suited for agriculture because of its arid climate and inconsistent rainfall. Northern areas concentrate mainly on livestock, and the southern parts and western Siberia produce grain. Restructuring of former state farms has been an extremely slow process. Foreigners are not allowed to own farmland in Russia although long-term leases are permitted. Private farms and garden plots of individuals account for over one-half of all agricultural production.
====Investment/Banking====
====Investment/Banking====
Russia attracted an estimated $31 billion in FDI in 2006 (3.2% of GDP), up from $13 billion in foreign direct investment (FDI) in 2005.Russia's annual FDI figures are now in line with those of China, India, and Brazil. However, Russia's per capita cumulative FDI still lags far behind such countries as Hungary, Poland, and the Czech Republic. The paradox is that Russia's challenging business climate, lack of transparency, and weak rule of law/corruption has taken a back seat to Russia's extraordinary macroeconomic fundamentals and the consumer and retail boom, which is providing double digit returns to investors and attracting new flows. Russian domestic investment is also returning home, as the foreign investment coming into Russia from havens like Cyprus and Gibraltar, is actually returning Russian capital . As of the end of 2006, loans to the financial sector were 57.2% of total banking sector assets. Retail loans amounted to $78.4 billion at the end of 2006, up from $41 billion at the end of 2005. Retail deposits increased to $144.1 billion from $95.7 billion over the same period. Also, currently deposits are fully insured up to $4,000 and an additional $12,000 is insured at 90%.
Russia attracted an estimated $31 billion in FDI in 2006 (3.2% of GDP), up from $13 billion in foreign direct investment (FDI) in 2005.Russia's annual FDI figures are now in line with those of China, India, and Brazil. However, Russia's per capita cumulative FDI still lags far behind such countries as Hungary, Poland, and the Czech Republic. The paradox is that Russia's challenging business climate, lack of transparency, and weak rule of law/corruption has taken a back seat to Russia's extraordinary macroeconomic fundamentals and the consumer and retail boom, which is providing double digit returns to investors and attracting new flows. Russian domestic investment is also returning home, as the foreign investment coming into Russia from havens like Cyprus and Gibraltar, is actually returning Russian capital . As of the end of 2006, loans to the financial sector were 57.2% of total banking sector assets. Retail loans amounted to $78.4 billion at the end of 2006, up from $41 billion at the end of 2005. Retail deposits increased to $144.1 billion from $95.7 billion over the same period. Also, currently deposits are fully insured up to $4,000 and an additional $12,000 is insured at 90%.
====Trade====
====Trade====
The U.S. exported $4.7 billion in goods to Russia in 2006, a 21% increase from the previous year. Corresponding U.S. imports from Russia were $19.8 billion, up 29%. Russia is currently the 33rd-largest export market for U.S. goods. Russian exports to the U.S. were fuel oil, inorganic chemicals, aluminum, and precious stones. U.S. exports to Russia were machinery, meat (mostly poultry), electrical equipment, and high-tech products.
The U.S. exported $4.7 billion in goods to Russia in 2006, a 21% increase from the previous year. Corresponding U.S. imports from Russia were $19.8 billion, up 29%. Russia is currently the 33rd-largest export market for U.S. goods. Russian exports to the U.S. were fuel oil, inorganic chemicals, aluminum, and precious stones. U.S. exports to Russia were machinery, meat (mostly poultry), electrical equipment, and high-tech products.
==History==
==History==
see [[History of Russia]]
[edit]Peter the Grat and Modernization
== See also ==
== See also ==