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RUSSIA

Founded in the 12th century, the Principality of Muscovy, was able to emerge from over 200 years of Mongol domination (13th-15th centuries) and to gradually conquer and absorb surrounding principalities. In the early 17th century, a new Romanov Dynasty continued this policy of expansion across Siberia to the Pacific. Under PETER I (ruled 1682-1725), hegemony was extended to the Baltic Sea and the country was renamed the Russian Empire. During the 19th century, more territorial acquisitions were made in Europe and Asia. Repeated devastating defeats of the Russian army in World War I led to widespread rioting in the major cities of the Russian Empire and to the overthrow in 1917 of the imperial household. The Communists under Vladimir LENIN seized power soon after and formed the USSR. The brutal rule of Iosif STALIN (1928-53) strengthened communist rule and Russian dominance of the Soviet Union at a cost of tens of millions of lives. The Soviet economy and society stagnated in the following decades until General Secretary Mikhail GORBACHEV (1985-91) introduced glasnost (openness) and perestroika (restructuring) in an attempt to modernize Communism, but his initiatives inadvertently released forces that by December 1991 splintered the USSR into Russia and 14 other independent republics. Since then, Russia has struggled in its efforts to build a democratic political system and market economy to replace the strict social, political, and economic controls of the Communist period. While some progress has been made on the economic front, recent years have seen a recentralization of power under Vladimir PUTIN and the erosion of nascent democratic institutions. A determined guerrilla conflict still plagues Russia in Chechnya and threatens to destabilize the North Caucasus region.

LOCATION 

Northern Asia (that part west of the Urals is included with Europe), bordering the Arctic Ocean, between Europe and the North Pacific Ocean

POPULATION

143,782,338 (July 2004 est.) Russian 81.5%, Tatar 3.8%, Ukrainian 3%, Chuvash 1.2%, Bashkir 0.9%, Belarusian 0.8%, Moldavian 0.7%, other 8.1% (1989). Russian Orthodox, Muslim, other

NATURAL RESOURCES

Wide natural resource base including major deposits of oil, natural gas, coal, and many strategic minerals, timber
note: formidable obstacles of climate, terrain, and distance hinder exploitation of natural resources

NATURAL CHALLENGES

Permafrost over much of Siberia is a major impediment to development; volcanic activity in the Kuril Islands; volcanoes and earthquakes on the Kamchatka Peninsula; spring floods and summer/autumn forest fires throughout Siberia and parts of European Russia. Air pollution from heavy industry, emissions of coal-fired electric plants, and transportation in major cities; industrial, municipal, and agricultural pollution of inland waterways and seacoasts; deforestation; soil erosion; soil contamination from improper application of agricultural chemicals; scattered areas of sometimes intense radioactive contamination; groundwater contamination from toxic waste; urban solid waste management; abandoned stocks of obsolete pesticides

GOVERNMENT AND POLITICS

federation

Moscow

49 oblasts (oblastey, singular - oblast), 21 republics (respublik, singular - respublika), 10 autonomous okrugs (avtonomnykh okrugov, singular - avtonomnyy okrug), 6 krays (krayev, singular - kray), 2 federal cities (singular - gorod), and 1 autonomous oblast (avtonomnaya oblast')
: oblasts: Amur (Blagoveshchensk), Arkhangel'sk, Astrakhan', Belgorod, Bryansk, Chelyabinsk, Chita, Irkutsk, Ivanovo, Kaliningrad, Kaluga, Kamchatka (Petropavlovsk-Kamchatskiy), Kemerovo, Kirov, Kostroma, Kurgan, Kursk, Leningrad, Lipetsk, Magadan, Moscow, Murmansk, Nizhniy Novgorod, Novgorod, Novosibirsk, Omsk, Orenburg, Orel, Penza, Perm', Pskov, Rostov, Ryazan', Sakhalin (Yuzhno-Sakhalinsk), Samara, Saratov, Smolensk, Sverdlovsk (Yekaterinburg), Tambov, Tomsk, Tula, Tver', Tyumen', Ul'yanovsk, Vladimir, Volgograd, Vologda, Voronezh, Yaroslavl'
: republics: Adygeya (Maykop), Altay (Gorno-Altaysk), Bashkortostan (Ufa), Buryatiya (Ulan-Ude), Chechnya (Groznyy), Chuvashiya (Cheboksary), Dagestan (Makhachkala), Ingushetiya (Magas), Kabardino-Balkariya (Nal'chik), Kalmykiya (Elista), Karachayevo-Cherkesiya (Cherkessk), Kareliya (Petrozavodsk), Khakasiya (Abakan), Komi (Syktyvkar), Mariy-El (Yoshkar-Ola), Mordoviya (Saransk), Sakha [Yakutiya] (Yakutsk), North Ossetia (Vladikavkaz), Tatarstan (Kazan'), Tyva (Kyzyl), Udmurtiya (Izhevsk)
: autonomous okrugs: Aga Buryat (Aginskoye), Chukotka (Anadyr'), Evenk (Tura), Khanty-Mansi, Komi-Permyak (Kudymkar), Koryak (Palana), Nenets (Nar'yan-Mar), Taymyr [Dolgano-Nenets] (Dudinka), Ust'-Orda Buryat (Ust'-Ordynskiy), Yamalo-Nenets (Salekhard)
: krays: Altay (Barnaul), Khabarovsk, Krasnodar, Krasnoyarsk, Primorskiy (Vladivostok), Stavropol'
: federal cities: Moscow (Moskva), Saint Petersburg (Sankt-Peterburg)
: autonomous oblast: Yevrey [Jewish] (Birobidzhan)
note: administrative divisions have the same names as their administrative centers (exceptions have the administrative center name following in parentheses)

24 August 1991 (from Soviet Union)

Russia Day, 12 June (1990)

adopted 12 December 1993

based on civil law system; judicial review of legislative acts

18 years of age; universal

chief of state: President Vladimir Vladimirovich PUTIN (acting president since 31 December 1999, president since 7 May 2000)
head of government: Premier Mikhail Yefimovich FRADKOV (since 5 March 2004); Deputy Premier Aleksandr Dmitriyevich ZHUKOV (since 9 March 2004)
cabinet: Ministries of the Government or "Government" composed of the premier and his deputy, ministers, and selected other individuals; all are appointed by the president
note: there is also a Presidential Administration (PA) that provides staff and policy support to the president, drafts presidential decrees, and coordinates policy among government agencies; a Security Council also reports directly to the president
elections: president elected by popular vote for a four-year term; election last held 14 March 2004 (next to be held March 2008); note - no vice president; if the president dies in office, cannot exercise his powers because of ill health, is impeached, or resigns, the premier succeeds him; the premier serves as acting president until a new presidential election is held, which must be within three months; premier appointed by the president with the approval of the Duma
election results: Vladimir Vladimirovich PUTIN reelected president; percent of vote - Vladimir Vladimirovich PUTIN 71.2%, Nikolay KHARITONOV 13.7%, other (no candidate above 5%) 15.1%

bicameral Federal Assembly or Federalnoye Sobraniye consists of the Federation Council or Sovet Federatsii (178 seats; as of July 2000, members appointed by the top executive and legislative officials in each of the 89 federal administrative units - oblasts, krays, republics, autonomous okrugs and oblasts, and the federal cities of Moscow and Saint Petersburg; members serve four-year terms) and the State Duma or Gosudarstvennaya Duma (450 seats; currently 225 seats elected by proportional representation from party lists winning at least 5% of the vote, and 225 seats from single-member constituencies; members are elected by direct, popular vote to serve four-year terms)
elections: State Duma - last held 7 December 2003 (next to be held NA December 2007)
election results: State Duma - percent of vote received by parties clearing the 5% threshold entitling them to a proportional share of the 225 party list seats - United Russia 37.1%, CPRF 12.7%, LDPR 11.6%, Motherland 9.1%; seats by party - United Russia 222, CPRF 53, LDPR 38, Motherland 37, People's Party 19, Yabloko 4, SPS 2, other 7, independents 65, repeat election required 3

Constitutional Court; Supreme Court; Superior Court of Arbitration; judges for all courts are appointed for life by the Federation Council on the recommendation of the president

Communist Party of the Russian Federation or CPRF [Gennadiy Andreyevich ZYUGANOV]; Liberal Democratic Party of Russia or LDPR [Vladimir Volfovich ZHIRINOVSKIY]; Motherland Bloc (Rodina) [Dmitriy ROGOZIN]; People's Party [Gennadiy RAYKOV]; Union of Right Forces or SPS [Anatoliy Borisovich CHUBAYS, Yegor Timurovich GAYDAR, Irina Mutsuovna KHAKAMADA, Boris Yefimovich NEMTSOV]; United Russia [Boris Vyacheslavovich GRYZLOV]; Yabloko Party [Grigoriy Alekseyevich YAVLINSKIY]

NA

APEC, ARF, ASEAN (dialogue partner), BIS, BSEC, CBSS, CE, CERN (observer), CIS, EAPC, EBRD, G- 8, IAEA, IBRD, ICAO, ICC, ICCt (signatory), ICFTU, ICRM, IDA, IFC, IFRCS, IHO, ILO, IMF, IMO, Interpol, IOC, IOM (observer), ISO, ITU, LAIA (observer), MIGA, MINURSO, MONUC, NAM (guest), NSG, OAS (observer), ONUB, OPCW, OSCE, Paris Club, PCA, PFP, SCO, UN, UN Security Council, UNAMSIL, UNCTAD, UNHCR, UNIDO, UNITAR, UNMEE, UNMIK, UNMIL, UNMISET, UNMOVIC, UNOCI, UNOMIG, UNTSO, UPU, WCO, WFTU, WHO, WIPO, WMO, WToO, WTO (observer), ZC

ECONOMICS 

Russia ended 2005 with its seventh straight year of growth, averaging 6.4% annually since the financial crisis of 1998. Although high oil prices and a relatively cheap ruble are important drivers of this economic rebound, since 2000 investment and consumer-driven demand have played a noticeably increasing role. Real fixed capital investments have averaged gains greater than 10% over the last five years, and real personal incomes have realized average increases over 12%. During this time, 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, with its foreign debt declining from 90% of GDP to around 31%. Strong oil export earnings have allowed Russia to increase its foreign reserves from only $12 billion to some $180 billion at yearend 2005. These achievements, along with a renewed government effort to advance structural reforms, have raised business and investor confidence in Russia's economic prospects. Nevertheless, serious problems persist. Economic growth slowed to 5.9% for 2005 while inflation remains high. Oil, natural gas, metals, and timber account for more than 80% of exports, leaving the country vulnerable to swings in world prices. Russia's manufacturing base is dilapidated and must be replaced or modernized if the country is to achieve broad-based economic growth. Other problems include a weak banking system, a poor business climate that discourages both domestic and foreign investors, corruption, and widespread lack of trust in institutions. In addition, a string of investigations launched against a major Russian oil company, culminating with the arrest of its CEO in the fall of 2003 and the acquisition of the company by a state owned firm, have raised concerns by some observers that President PUTIN is granting more influence to forces within his government that desire to reassert state control over the economy. State control has increased in the past year with a number of large acquisitions. Most fundamentally, Russia has made little progress in building the rule of law, the bedrock of a modern market economy.Revenues: $83.99 billion
Expenditures: $73.75 billion, including capital expenditures of NA (2004 est.)

INDUSTRY

Complete range of mining and extractive industries producing coal, oil, gas, chemicals, and metals; all forms of machine building from rolling mills to high-performance aircraft and space vehicles; shipbuilding; road and rail transportation equipment; communications equipment; agricultural machinery, tractors, and construction equipment; electric power generating and transmitting equipment; medical and scientific instruments; consumer durables, textiles, foodstuffs, handicrafts.

Oil - production:
7.286 million bbl/day (2004 est.)

Oil - consumption:
2.595 million bbl/day (2001 est.)

Oil - exports:
NA (2001)

Oil - imports:
NA (2001)

Oil - proved reserves:
51.22 billion bbl (1 January 2002)

Natural gas - production:
580.8 billion cu m (2001 est.)

Natural gas - consumption:
408.1 billion cu m (2001 est.)

Natural gas - exports:
205.4 billion cu m (2001 est.)

Natural gas - imports:
32.7 billion cu m (2001 est.)

Natural gas - proved reserves:
47.86 trillion cu m (1 January 2002)

Debt - external:
$175.9 billion (2004 est.)

Economic aid - recipient:
In FY01 from US, $979 million (including $750 million in non-proliferation subsidies); in 2001 from EU, $200 million (2000 est.)

Internet hosts:
560,874 (2004)

Internet users:
6 million (2002)

CONFLICTS 

in 2005, China and Russia ratified the treaty to divide up the islands in the Amur, Ussuri, and Argun Rivers, representing the final portion of their centuries-long border disputes; the sovereignty dispute over the islands of Etorofu, Kunashiri, Shikotan, and the Habomai group, known in Japan as the "Northern Territories" and in Russia as the "Southern Kurils," occupied by the Soviet Union in 1945, now administered by Russia, and claimed by Japan, remains the primary sticking point to signing a peace treaty formally ending World War II hostilities; Russia and Georgia agree on delimiting all but small, strategic segments of the land boundary and the maritime boundary; OSCE observers monitor volatile areas such as the Pankisi Gorge in the Akhmeti region and the Kodori Gorge in Abkhazia; Azerbaijan, Kazakhstan, and Russia signed equidistance boundaries in the Caspian seabed but the littoral states have no consensus on dividing the water column; Russia and Norway dispute their maritime limits in the Barents Sea and Russia's fishing rights beyond Svalbard's territorial limits within the Svalbard Treaty zone; various groups in Finland advocate restoration of Karelia (Kareliya) and other areas ceded to the Soviet Union following the Second World War but the Finnish Government asserts no territorial demands; in May 2005, Russia recalled its signatures to the 1996 border agreements with Estonia (1996) and Latvia (1997), when the two Baltic states announced issuance of unilateral declarations referencing Soviet occupation and ensuing territorial losses; Russia demands better treatment of ethnic Russians in Estonia and Latvia; Estonian citizen groups continue to press for realignment of the boundary based on the 1920 Tartu Peace Treaty that would bring the now divided ethnic Setu people and parts of the Narva region within Estonia; Lithuania and Russia committed to demarcating their boundary in 2006 in accordance with the land and maritime treaty ratified by Russia in May 2003 and by Lithuania in 1999; Lithuania operates a simplified transit regime for Russian nationals traveling from the Kaliningrad coastal exclave into Russia, while still conforming, as a member state that forms part of the EU's external border, to strict Schengen border rules; delimitation of land boundary with Ukraine is complete, but states have renewed discussions on demarcation; the dispute over the maritime boundary between Russia and Ukraine through the Kerch Strait and Sea of Azov remains unresolved despite a December 2003 framework agreement and on-going expert-level discussions; discussions toward economic and political union with Belarus advance slowly; Kazakhstan and Russia boundary delimitation ratified November 2005 and demarcation is underway; Russian Duma has not yet ratified 1990 Maritime Boundary Agreement with the US in the Bering Sea.

OTHER CONSIDERATIONS

Limited cultivation of illicit cannabis and opium poppy and producer of methamphetamine, mostly for domestic consumption; government has active illicit crop eradication program; used as transshipment point for Asian opiates, cannabis, and Latin American cocaine bound for growing domestic markets, to a lesser extent Western and Central Europe, and occasionally to the US; major source of heroin precursor chemicals; corruption and organized crime are key concerns; heroin increasingly popular in domestic market. ## All Rights Reserved TheWeekInCongress.com.

(Images and data: US CIA July 20, 2006)