Russia

The following entry is the one originally submitted by the contributors. The previous version of this entry that appeared in the original printing of the encyclopedia was not the one submitted by the contributors and was mistakenly used by the Publisher. The entry was written by Drs. Efthimios Poulis and Konstantinos Poulis, and the Publisher apologizes for submitting the wrong version of this entry for publication.

Russia is the largest country in the world and a major political player, being a member of the United Nations (UN) Security Council, the Group of Eight (G8) industrialized nations, and the Council of Europe. Main industries of the Russian economy include mining and extractive industries producing coal, oil, gas, chemicals, and metals; defense industries; and information technology among others. From 1922 to 1991 Russia, among 14 other countries, was part of the Union of Soviet Socialist Republics (USSR or Soviet Union). The Soviet Union had the modern world's first centrally planned economy, which developed into the second-largest and most powerful in the world. During and after the disintegration of the USSR when wide-ranging reforms including privatization and market and trade liberalization were being undertaken, the Russian economy went through a major crisis as it moved from a centrally planned economy to a free market system.

Despite the country's strong economic performance since 1999 and the significant improvement of its international financial position, political, legislation, and management problems still remain. Nevertheless, Russia has a huge long-term potential and is on its way to being a developed country within the 2020–25 time frame.

Russia Today: Brief Facts

Russia, officially known as the Russian Federation, is a federation with 89 provincial authorities including a number of semiautonomous republics. It is the largest country in the world with a land mass of 17,075 square kilometers (6,592,800 square miles), covering 11 time zones, and with a population of 147 million. It has a rich cultural identity that has been shaped by its distinguished history and vast geography. The official currency in Russia is the ruble. However, it is very common for businesses to make their calculations in U.S. dollars or, more recently, in euros.

Major Industries

Main industries of the Russian economy include a complete range of mining and extractive industries producing coal, oil, gas, chemicals, and metals. It is the world's leading natural gas exporter and the second-leading oil exporter, so Russia remains highly dependent upon the price of energy. However, most such resources are located in remote and climatically unfavorable areas, thus making the exploitation of natural resources more difficult.

Other industries that play a key role in the Russian economy are defense industries including radar, missile production, and advanced electronic components. For instance, Russia has the largest stockpile of nuclear weapons in the world. Russia is the world's top supplier of weapons, a spot it has held since 2001, accounting for around 30 percent of worldwide weapons sales and exporting weapons to about 80 countries.

[Page 1390]Moreover, the information technology (IT) market is one of the most dynamic sectors of the Russian economy. Russian software exports have increased from just US$120 million in 2000 to US$1.5 billion in 2006. Meanwhile the fastest-growing segment of the IT market is offshore programming. Russia is the world's third-biggest destination for outsourcing software behind India and China. It is also worth mentioning Russia's attempt over the last few years to diversify its research and development in emerging technologies. For example, there has been a massive US$7 billion investment program in nanotechnology.

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