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Today we must say once and for all: the Cold War is done with! We have entered a new stage of development. We understand that without a modern, sound and sustainable security architecture we will never be able to create an atmosphere of trust on the continent, and without that atmosphere of trust there can be no united Greater Europe! Today we must say that we renounce our stereotypes and ambitions and from now on will jointly work for the security of the people of Europe and the world as a whole.}}
Today we must say once and for all: the Cold War is done with! We have entered a new stage of development. We understand that without a modern, sound and sustainable security architecture we will never be able to create an atmosphere of trust on the continent, and without that atmosphere of trust there can be no united Greater Europe! Today we must say that we renounce our stereotypes and ambitions and from now on will jointly work for the security of the people of Europe and the world as a whole.}}
In the 8 years after Vladimir Putin took power, GDP growth averaged just under 7% due to a devalued ruble, implementation of key economic reforms (tax, banking, labor and land codes), tight fiscal policy, and favorable commodities prices. Household consumption and fixed capital investments have both grown by about 10 percent per year since 1999 and have replaced net exports as the main drivers of demand growth. Inflation and exchange rates have stabilized due to a prudent fiscal policy (Russia has run a budget surplus since 2003). The government created a stabilization/rainy day fund ($127 billion in mid-2007), and had the third-largest foreign exchange reserves in the world (close to $420 billion in mid-2007) which should shelter it from commodity price shocks.
Russia's balance of payments moves from strength to strength. In 2004 the current account balance grew from $58.6 billion to $95.3 billion in 2006, almost entirely due to oil price increases. The capital account turned positive in 2006, with net inflow of $6.1 billion. In addition, net private capital flows in 2006 increased significantly to $40.9 billion, compared to an inflow of $0.1 billion in 2005 due to liberalization of the capital account in mid-2006. Foreign direct investment (FDI) flows dramatically improved in 2006 to an estimated $31 billion (inflows totaled $15.4 billion and $14.6 billion in 2004 and 2005, respectively). As of July 1, 2006, the ruble is convertible for both current and capital transactions. Russia prepaid its entire Soviet-era Paris Club debt of $22 billion in late 2006, pushing Russia's sovereign foreign debt down to $45 billion at the end of 2006, or about 5 percent of GDP. Russia's total public and private foreign debt at the end of 2006 was $310 billion, or 31 percent of GDP. Such a dramatic reversal to the macroeconomic situation is truly remarkable. Russia currently has a sovereign investment-grade rating from Standard and Poor's of BBB+.
[[File:Znamensk Russia.jpg|thumb|280px|left|Street in Znamensk.]]
Although the economy began to diversify, the government budget remains dependent on oil and gas revenues; consumption and investment are, however, contributing to an increasing share to GDP growth. While currently sheltered from external price shocks, the government realizes the need to intensify reforms that will promote new investment in aging infrastructure and continued productivity gains. The government believes it can do this by creating state-sponsored investment funds, special economic zones, and by exercising control of strategic enterprises (a draft law defining strategic sectors was submitted to the Duma in August 2007). Although investors are returning to Russia, excessive bureaucracy, corruption, insufficient and insufficiently enforced legislation, selective interpretation of laws (particularly tax laws), unclear limits and conditions on foreign investment, obsolete infrastructure, and stalled economic reforms still remain a problem.{{fact}} In 2005, the government announced reform programs in four priority areas (health, education, housing, and agriculture), but further work is needed on them as well as in financial regulation, civil service reform, and reform of government monopolies, such as railroads, gas, and electricity.
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," [https://www.nytimes.com/2009/03/31/world/europe/31russia.html?ref=world ''New York Times'' Mar. 30, 2009]</ref>
At the beginning of 2014, oil was pricing steadily in the ~$100-130 per barrel range. Then a major geopolitical crisis developed. The U.S. and the [[CIA]] staged the Ukrainian '[[Euromaidan]]' coup which overthrew the legitimate [[democracy|democratically elected]] Ukrainian government in the opening months of that year. In March, [[Crimea]] held a democratic referendum to once more rejoin Russia. This was a massive blow to the United States geopolitical ambitions to secure the Sevastopol naval base for itself as a NATO base. For this, Russia had to be punished, as it had now grown too strong, regaining its major warm water port in [[Sevastopol]] that could be used to challenge the Western Atlanticist designs in the [[Middle East]] by way of the Black Sea fleet's access to the [[Mediterranean]].
[[File:City garden Kolpino Autumn, 2009.JPG|thumb|City garden, Kolpino.]]
The Atlanticists took action, and with their [[Saudi Arabia]]n partners carried out a plan to crash the price per barrel of oil by flooding the world market with cheap oil in order to hurt Russia as much as possible, since—by conventional thinking—the Russian economy was more tied to fossil fuel production than most other countries. They crashed the oil market with a large concerted campaign that was multipart: the U.S. vastly jacked up its fracking for shale oil while OPEC was strong-armed by [[Washington, D.C.|Washington]] into increasing production as well. At the same time, the entire Atlanticist West hit Russia with huge sanctions based on the [[Crimean Annexation]] and Flight [[MH17]] [[false flag]] shoot down. And lastly, the U.S. orchestrated many Russian currency/bond holders to sell everything by encouraging ‘panic’, spreading false info about Russia’s collapse—basically spooking investors. This caused large sell-offs of the Ruble.
By 2015-2016 the price of oil crashed from the ~$100-115 per barrel range to the ~$40-50 per barrel range, becoming roughly ~50% of its original price, the price of $96 in 2014 being halved to $40-49 in 2015-2016. The Ruble to Dollar conversion rate went from a low of roughly ~37 Rubles to 1 Dollar in 2014, soaring to the range of ~60-75 Rubles to 1 Dollar in 2015 to exactly coincide with the oil price crash. The Ruble also devalued by ‘half’, as it went from ~35 to ~70 against the Dollar by 2015-2016. However, because Russia has a huge [[trade surplus]] and does not need foreign currency earnings, the devaluation in exchange rates had little impact on the Russian economy. Per capita GDP continued to rise.
While the state budget was heavily dependent on oil revenues, the Russian economy as a whole is not. Fossil fuel production only accounts for 12-14% of GDP. The Russian economy is incredibly diversified, self-contained, and not dependent on imports. A 50% drop in the world oil price did not translate into a massive drop in Russian GDP as planned, hoped for, and claimed by Western analysts, [[think tank]]s, and media [[propaganda]] outlets.
Western institutions, such as the [[World Bank]], errantly applied the devalued currency exchange rate to Nominal GDP which created a distorted picture showing a supposed 40% decline in Nominal GDP from $2 trillion to $1.2 trillion when in fact Russian Nominal GDP continued to grow.<ref>[https://simplicius76.substack.com/p/the-truth-about-russias-economic The Truth About Russia's Economic Power: Is It Really as Small and Weak as the West Claims?], Simplicius The Thinker, Apr 2, 2023.</ref> The miscalculation had disastrous consequences for [[the West]] in coming years as Western policymakers jokingly referred to Russia as "a gas station with [[nuclear weapon]]s", and arrogantly sought to destroy the Russian state through sanctions and war.
*GDP: $1.65 trillion (2020)
*Growth rate: 3.0% (2020)
*Natural resources: Petroleum, natural gas, timber, furs, precious and nonferrous metals.
*Agriculture: Products—Grain, sugar beets, sunflower seeds, meat, dairy products.
*Industry: Types—Complete range of manufactures: automobiles, trucks, trains, agricultural equipment, advanced aircraft, aerospace, machine and equipment products; mining and extractive industry; medical and scientific instruments; construction equipment.
*Trade (2006): Exports--$304 billion: petroleum and petroleum products, natural gas, woods and wood products, metals, chemicals. Major markets—EU, CIS, China, Japan. Imports--$165 billion: machinery and equipment, chemicals, consumer goods, medicines, meat, sugar, semi-finished metal products. Major partners—EU, U.S., NIS, Japan, China. U.S. exports--$4.7 billion. Principal U.S. exports (2006)--oil/gas equipment, meat, inorganic chemicals, tobacco, aircraft, medical equipment, autos/parts. U.S. imports--$19.8 billion. Principal U.S. imports (2006)--oil, aluminum, chemicals, platinum, iron/steel, fish and crustaceans, nickel, wood, and copper.
Russia’s foreign debt-to-GDP ratio fell below 15% for the first time in history, reaching $343.4 billion at the end of June 2023. External debt per capita decreased by four percent to $2,300. By contrast, the external debt per capita in the United States is over $73,000.
===Beslan massacre===
===Beslan massacre===
The [[Beslan massacre]] occurred when a group of Chechen [[jihad]]is took over 1200 pupils and their teachers hostage in Beslan, North Ossetia, Russia, on September 1, 2004. The people of Beslan are mostly [[Christian]] and this is why they were targeted.<ref>[http://www.christianitytoday.com/ct/2004/november/1.19.html ''Praying for Terrorists''] November 2004 [[Christianity Today]]. Accessed 5 March 2008</ref> The terrorists began by executing male teachers; female teachers were raped, tortured and taunted for being Christian. Pupils, both female and male, were forced to strip to their underwear; many of the children were raped by fanatical [[jihad]]ists who recorded the rapes on video. An 18 Month old baby was knifed to death by one of the Muslim terrorists.<ref>[http://www.sundaymirror.co.uk/tm_objectid=14605550&method=full&siteid=106694&headline=they-knifed-babies--they-raped-girls-name_page.html ''Beslan: They knifed babies, they raped girls''] 5 September 2004 Sunday Mirror. Accessed 5 March 2008</ref>
The [[Beslan massacre]] occurred when a group of Chechen [[jihad]]is took over 1200 pupils and their teachers hostage in Beslan, North Ossetia, Russia, on September 1, 2004. The people of Beslan are mostly [[Christian]] and this is why they were targeted.<ref>[http://www.christianitytoday.com/ct/2004/november/1.19.html ''Praying for Terrorists''] November 2004 [[Christianity Today]]. Accessed 5 March 2008</ref> The terrorists began by executing male teachers; female teachers were raped, tortured and taunted for being Christian. Pupils, both female and male, were forced to strip to their underwear; many of the children were raped by fanatical [[jihad]]ists who recorded the rapes on video. An 18 Month old baby was knifed to death by one of the Muslim terrorists.<ref>[http://www.sundaymirror.co.uk/tm_objectid=14605550&method=full&siteid=106694&headline=they-knifed-babies--they-raped-girls-name_page.html ''Beslan: They knifed babies, they raped girls''] 5 September 2004 Sunday Mirror. Accessed 5 March 2008</ref>