History Of Russia (1991–present)
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The modern history of
Russia Russia, or the Russian Federation, is a country spanning Eastern Europe and North Asia. It is the list of countries and dependencies by area, largest country in the world, and extends across Time in Russia, eleven time zones, sharing Borders ...
began with the
Russian SFSR The Russian Soviet Federative Socialist Republic (Russian SFSR or RSFSR), previously known as the Russian Socialist Federative Soviet Republic and the Russian Soviet Republic, and unofficially as Soviet Russia,Declaration of Rights of the labo ...
, a constituent republic of the
Soviet Union The Union of Soviet Socialist Republics. (USSR), commonly known as the Soviet Union, was a List of former transcontinental countries#Since 1700, transcontinental country that spanned much of Eurasia from 1922 until Dissolution of the Soviet ...
, gaining more political and economical autonomy amidst the imminent dissolution of the USSR during 1988–1991, proclaiming its sovereignty inside the Union in June 1990, and electing its first President
Boris Yeltsin Boris Nikolayevich Yeltsin (1 February 1931 – 23 April 2007) was a Soviet and Russian politician and statesman who served as President of Russia from 1991 to 1999. He was a member of the Communist Party of the Soviet Union (CPSU) from 1961 to ...
a year later. The Russian Soviet Federative Socialist Republic was the largest Soviet Socialist Republic, but it had no significant independence before, being the only Soviet republic to not have its own branch of the Communist Party. The RSFSR was the largest of the fifteen republics that made up the USSR, accounting for over 60% of its
GDP Gross domestic product (GDP) is a monetary measure of the total market value of all the final goods and services produced and rendered in a specific time period by a country or countries. GDP is often used to measure the economic performance o ...
and over 50% of its population.
Russians Russians ( ) are an East Slavs, East Slavic ethnic group native to Eastern Europe. Their mother tongue is Russian language, Russian, the most spoken Slavic languages, Slavic language. The majority of Russians adhere to Eastern Orthodox Church ...
also dominated the Soviet military and the Communist Party. As such, the Russian Federation was widely accepted as the USSR's
successor state Succession of states is a concept in international relations regarding a successor state that has become a sovereign state over a territory (and populace) that was previously under the sovereignty of another state. The theory has its roots in 19th ...
in diplomatic affairs and it assumed the USSR's permanent membership and veto in the
UN Security Council The United Nations Security Council (UNSC) is one of the six principal organs of the United Nations (UN) and is charged with ensuring international peace and security, recommending the admission of new UN members to the General Assembly, an ...
(see
Russia and the United Nations The Russian Federation continued (see Succession, continuity and legacy of the Soviet Union) to use the Soviet Union's seat, including its permanent membership on the Security Council in the United Nations after the 1991 dissolution of the ...
). Prior to the dissolution of the USSR, Yeltsin had been elected President of the RSFSR in June 1991 in the first direct presidential election in Russian history. This ensured that he would be the political leader of the Russian successor state following dissolution. This situation resulted in political turmoil as the Soviet and Russian leadership wrestled for control, which culminated in the 1991 August coup, where the Soviet military attempted to overthrow
Mikhail Gorbachev Mikhail Sergeyevich Gorbachev (2 March 1931 – 30 August 2022) was a Soviet and Russian politician who served as the last leader of the Soviet Union from 1985 to dissolution of the Soviet Union, the country's dissolution in 1991. He served a ...
. Although the coup was ultimately averted, this situation contributed to rising instability in the Soviet Union. As the USSR was on the verge of collapse by October 1991, Yeltsin announced that Russia would proceed with radical reforms, including shock therapy policies to introduce
capitalism Capitalism is an economic system based on the private ownership of the means of production and their use for the purpose of obtaining profit. This socioeconomic system has developed historically through several stages and is defined by ...
. This caused a sustained
economic recession An economy is an area of the Production (economics), production, Distribution (economics), distribution and trade, as well as Consumption (economics), consumption of Goods (economics), goods and Service (economics), services. In general, it is ...
, and
GDP per capita This is a list of countries by nominal GDP per capita. GDP per capita is the total value of a country's finished goods and services (gross domestic product) divided by its total population (per capita). Gross domestic product (GDP) per capita is ...
levels eventually returned to their 1991 levels by the mid-2000s. Following Yeltsin's resignation in 1999, Russia's politics have since been dominated by
Vladimir Putin Vladimir Vladimirovich Putin (born 7 October 1952) is a Russian politician and former intelligence officer who has served as President of Russia since 2012, having previously served from 2000 to 2008. Putin also served as Prime Minister of Ru ...
, serving as either President or Prime Minister. Although the Russian economy has improved significantly under Putin's leadership following relative economic chaos under Yeltsin, Putin has also been widely accused of
corruption Corruption is a form of dishonesty or a criminal offense that is undertaken by a person or an organization that is entrusted in a position of authority to acquire illicit benefits or abuse power for one's gain. Corruption may involve activities ...
,
authoritarian Authoritarianism is a political system characterized by the rejection of political plurality, the use of strong central power to preserve the political ''status quo'', and reductions in democracy, separation of powers, civil liberties, and ...
leadership, and widespread
human rights Human rights are universally recognized Morality, moral principles or Social norm, norms that establish standards of human behavior and are often protected by both Municipal law, national and international laws. These rights are considered ...
abuses. An authoritarian form of governance in Russia since
2000 2000 was designated as the International Year for the Culture of Peace and the World Mathematics, Mathematical Year. Popular culture holds the year 2000 as the first year of the 21st century and the 3rd millennium, because of a tende ...
has been called Putinism. For the most part, the
Russian armed forces The Armed Forces of the Russian Federation, commonly referred to as the Russian Armed Forces, are the military of Russia. They are organized into three service branches—the Russian Ground Forces, Ground Forces, Russian Navy, Navy, and Russi ...
were in near complete disarray by 1992, one year after dissolution. This degraded military effectiveness would become all too clear during the 1994 Chechen War, and in the interim posed significant practical challenges for global security and arms control. Under Russian leadership, the
Lisbon Protocol The Lisbon Protocol to the 1991 START I, Strategic Arms Reduction Treaty was a document signed by representatives of Russia, Belarus, Ukraine, and Kazakhstan that recognized the four states as successors of the Union of Soviet Socialist Republic ...
ensured that former Soviet republics would disarm themselves of nuclear weapons. This affected Kazakhstan in particular, as it hosted a significant share of the world's nuclear weapons immediately following the dissolution of the Soviet Union. However, the former Soviet republics were able to maintain transnational cooperation in other military areas, like establishing shared responsibility for the rocket and space infrastructure such as the
Baikonur Cosmodrome The Baikonur Cosmodrome is a spaceport operated by Russia within Kazakhstan. Located in the Kazakh city of Baikonur, it is the largest operational space launch facility in terms of area. All Russian Human spaceflight, crewed spaceflights are l ...
.


Reforms


"Shock therapy"

With the dissolution of the
Warsaw Pact The Warsaw Pact (WP), formally the Treaty of Friendship, Co-operation and Mutual Assistance (TFCMA), was a Collective security#Collective defense, collective defense treaty signed in Warsaw, Polish People's Republic, Poland, between the Sovi ...
and
COMECON The Council for Mutual Economic Assistance, often abbreviated as Comecon ( ) or CMEA, was an economic organization from 1949 to 1991 under the leadership of the Soviet Union that comprised the countries of the Eastern Bloc#List of states, Easter ...
and other treaties that served to bind its satellite states to the Soviet Union, the conversion of the world's largest state-controlled economy into a market-oriented economy would have been extraordinarily difficult regardless of the policies chosen. The policies chosen for this transition were (1) liberalization, (2) stabilization and (3)
privatization Privatization (rendered privatisation in British English) can mean several different things, most commonly referring to moving something from the public sector into the private sector. It is also sometimes used as a synonym for deregulation w ...
. These policies were based on the
Washington Consensus The Washington Consensus is a set of ten economic policy prescriptions considered in the 1980s and 1990s to constitute the "standard" reform package promoted for Economic crisis, crisis-wracked developing country, developing countries by the Was ...
of the
International Monetary Fund The International Monetary Fund (IMF) is a major financial agency of the United Nations, and an international financial institution funded by 191 member countries, with headquarters in Washington, D.C. It is regarded as the global lender of las ...
(IMF),
World Bank The World Bank is an international financial institution that provides loans and Grant (money), grants to the governments of Least developed countries, low- and Developing country, middle-income countries for the purposes of economic development ...
and Treasury Department. On 2 January 1992, Yeltsin—acting as his own prime minister—enacted the most comprehensive components of economic reform by decree, thereby circumventing the
Supreme Soviet of Russia The Supreme Soviet of the Russian Soviet Federative Socialist Republic, Russian SFSR, later the Supreme Soviet of the Russian Federation, was the supreme government institution of the Russian SFSR from 1938 to 1990; between 1990 and 1993, it was ...
and
Congress of People's Deputies of Russia The Congress of People's Deputies of the Russian SFSR () and since 1992 Congress of People's Deputies of the Russian Federation () was the supreme government institution in the Russian SFSR and in the Russian Federation from 16 May 1990 to 21 Se ...
, which had been elected in March 1990, before the dissolution of the USSR. While this spared Yeltsin from the prospects of bargaining and wrangling with Soviet deputies, it also eliminated any meaningful discussion of the right course of action for the country. The programs of liberalization and stabilization were designed by Yeltsin's deputy prime minister Yegor Gaidar, a liberal economist inclined toward radical reform, and widely known as an advocate of " shock therapy". Shock therapy was originally used in Bolivia by notable economist Jeffery Sachs to combat inflation in the 1980s. Having achieved some major successes in Bolivia, shock therapy was then imported to the Polish context following the dissolution of the Soviet Union, and Russia shortly after. The partial results of liberalization (lifting price controls) included worsening already apparent
hyperinflation In economics, hyperinflation is a very high and typically accelerating inflation. It quickly erodes the real versus nominal value (economics), real value of the local currency, as the prices of all goods increase. This causes people to minimiz ...
, initially due to monetary overhang and exacerbated after the
central bank A central bank, reserve bank, national bank, or monetary authority is an institution that manages the monetary policy of a country or monetary union. In contrast to a commercial bank, a central bank possesses a monopoly on increasing the mo ...
, an organ under parliament, which was skeptical of Yeltsin's reforms, was short of revenue and printed money to finance its debt. This resulted in the near bankruptcy of much of Russian industry. The process of liberalization would create winners and losers, depending on how particular industries, classes, age groups, ethnic groups, regions, and other sectors of Russian society were positioned. Some would benefit by the opening of competition; others would suffer. Among the winners were the new class of entrepreneurs and black marketeers that had emerged under
Mikhail Gorbachev Mikhail Sergeyevich Gorbachev (2 March 1931 – 30 August 2022) was a Soviet and Russian politician who served as the last leader of the Soviet Union from 1985 to dissolution of the Soviet Union, the country's dissolution in 1991. He served a ...
's ''
perestroika ''Perestroika'' ( ; rus, перестройка, r=perestrojka, p=pʲɪrʲɪˈstrojkə, a=ru-perestroika.ogg, links=no) was a political reform movement within the Communist Party of the Soviet Union (CPSU) during the late 1980s, widely associ ...
''. But liberalizing prices meant that the elderly and others on fixed incomes would suffer a severe drop in living standards, and people would see a lifetime of savings wiped out. With inflation at double-digit rates per month as a result of printing, macroeconomic stabilization was enacted to curb this trend. Stabilization, also called structural adjustment, is a harsh austerity regime (tight
monetary policy Monetary policy is the policy adopted by the monetary authority of a nation to affect monetary and other financial conditions to accomplish broader objectives like high employment and price stability (normally interpreted as a low and stable rat ...
and
fiscal policy In economics and political science, fiscal policy is the use of government revenue collection ( taxes or tax cuts) and expenditure to influence a country's economy. The use of government revenue expenditures to influence macroeconomic variab ...
) for the economy in which the government seeks to control inflation. Under the stabilization program, the government let most prices float, raised
interest rate An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited, or borrowed (called the principal sum). The total interest on an amount lent or borrowed depends on the principal sum, the interest rate, ...
s to record highs, raised heavy new taxes, sharply cut back on government subsidies to industry and construction, and made massive cuts in state welfare spending. These policies caused widespread hardship as many state enterprises found themselves without orders or financing. A deep
credit crunch A credit crunch (a credit squeeze, credit tightening or credit crisis) is a sudden reduction in the general availability of loans (or credit) or a sudden tightening of the conditions required to obtain a loan from banks. A credit crunch generally ...
shut down many industries and brought about a protracted depression. The rationale of the program was to squeeze the built-in inflationary pressure out of the economy so that producers would begin making sensible decisions about production, pricing and investment instead of chronically overusing resources—a problem that resulted in shortages of
consumer goods in the Soviet Union Consumer goods in the Soviet Union were usually produced by a two-category industry. Group A was "heavy industry", which included all goods that serve as an input required for the production of some other, final good. Group B was "consumer goods ...
in the 1980s. By letting the market rather than central planners determine prices, product mixes, output levels, and the like, the reformers intended to create an incentive structure in the economy where efficiency and risk would be rewarded and waste and carelessness were punished. Removing the causes of chronic inflation, the reform architects argued, was a precondition for all other reforms: Hyperinflation would wreck both democracy and economic progress, they argued; they also argued that only by stabilizing the state budget could the government proceed to dismantle the Soviet planned economy and create a new capitalist Russia. Nonetheless, radical reform continued to face some critical political barriers. The
Central Bank A central bank, reserve bank, national bank, or monetary authority is an institution that manages the monetary policy of a country or monetary union. In contrast to a commercial bank, a central bank possesses a monopoly on increasing the mo ...
was still subordinate to the conservative Supreme Soviet who continued to support socialist policies in opposition to Yeltsin and the presidency. During the height of
hyperinflation In economics, hyperinflation is a very high and typically accelerating inflation. It quickly erodes the real versus nominal value (economics), real value of the local currency, as the prices of all goods increase. This causes people to minimiz ...
in 1992–1993, the Central Bank actually tried to derail reforms by actively printing even more money during this period of inflation. After all, the Russian government was short of revenue and was forced to print money to finance its debt. As a result, inflation exploded into hyperinflation, and the Russian economy continued into an evermore serious slump.


Privatization

Upon the Soviet Union's collapse, the new Russian government was forced to manage the huge state enterprise sector inherited from the Soviet economy. Privatization was carried out by the State Committee for State Property Management of the Russian Federation under
Anatoly Chubais Anatoly Borisovich Chubais (; born 16 June 1955) is a Russian- Israeli politician and economist who was responsible for privatization in Russia as an influential member of Boris Yeltsin's administration in the early 1990s. During this period, ...
with the primary goal being to transform the formerly state-owned enterprises into profit-seeking businesses, which would not be dependent on government subsidies for their survival. To distribute property quickly and to win over popular support, the reformers decided to rely mostly on the mechanism of free
voucher privatization Voucher privatization (, ) is a privatization method where citizens are given or can inexpensively buy a book of vouchers that represent potential shares in any state-owned company. Voucher privatization has mainly been used in the early to mid-1 ...
, which was earlier implemented in
Czechoslovakia Czechoslovakia ( ; Czech language, Czech and , ''Česko-Slovensko'') was a landlocked country in Central Europe, created in 1918, when it declared its independence from Austria-Hungary. In 1938, after the Munich Agreement, the Sudetenland beca ...
. The Russian government believed that the open sale of state-owned assets, as opposed to the voucher program, would have likely resulted in the further concentration of ownership among the
Russian mafia The Russian mafia ( or ), also known as Bratva ( ; ) less as Obshchak (Общак) or Brigades (Бригады) , is a collective of various organized crime related elements originating or/and operating in Russia. In December 2009, Timur ...
and the
nomenklatura The ''nomenklatura'' (; from , system of names) were a category of people within the Soviet Union and other Eastern Bloc countries who held various key administrative positions in the bureaucracy, running all spheres of those countries' activity: ...
, which they sought to avoid. Nevertheless, contrary to the government's expectations, insiders managed to acquire control over most of the assets, which remained largely dependent on government support for years to come. From 1992 to 1994, ownership of 15,000 firms was transferred from state control via the voucher program. Privatization of the oil sector was regulated by
presidential decree A decree is a legal proclamation, usually issued by a head of state, judge, royal figure, or other relevant authorities, according to certain procedures. These procedures are usually defined by the constitution, Legislative laws, or customary l ...
No.1403 approved on 17 November 1992. Vertically integrated companies were created by joining some oil-producing enterprises and refineries into open-stock companies. Starting in 1994 many former state oil companies were privatized. This privatization had been partial because the federal government had obtained ownership positions in several companies and had also retained full control over the transport of oil to lucrative world markets. In 1995, facing severe
fiscal deficit The government budget balance, also referred to as the general government balance, public budget balance, or public fiscal balance, is the difference between government revenues and spending. For a government that uses accrual accounting ( ...
and in desperate need of funds for the 1996 presidential elections, the government of Boris Yeltsin adopted a " loans-for-share" scheme proposed by banker
Vladimir Potanin Vladimir Olegovich Potanin (; born 3 January 1961) is a Russian oligarch. He acquired his wealth notably through the controversial loans-for-shares program in Russia in the early to mid-1990s. As of May 7, 2025, Forbes ranked 81st richest in ...
and endorsed by
Anatoly Chubais Anatoly Borisovich Chubais (; born 16 June 1955) is a Russian- Israeli politician and economist who was responsible for privatization in Russia as an influential member of Boris Yeltsin's administration in the early 1990s. During this period, ...
, then a deputy prime minister, whereby some of the largest state industrial assets (including state-owned shares in Norilsk Nickel,
Yukos OJSC "Yukos Oil Company" (, ) was an oil and gas company based in Moscow, Russia. Yukos was acquired from the Russian government by Russian oligarch Mikhail Khodorkovsky's Bank Menatep during the controversial "loans for shares" auctions of ...
, Lukoil,
Sibneft Gazprom Neft (; formerly Sibneft, ) is the third largest Petroleum industry, oil producer in Russia and ranked third according to Oil refinery, refining throughput. It is a subsidiary of Gazprom, which owns about 96% of its shares. The company is ...
,
Surgutneftegas Surgutneftegas ( rus, ПАО «Сургутнефтегаз», p=sʊrɡʊtnʲɪftʲɪˈɡas) is a Russian oil and gas company created by merging several previously state-owned companies owning large oil and gas reserves in Western Siberia. The c ...
, Novolipetsk Steel, and
Mechel Mechel () is one of Russia's mining and metals companies, comprising producers of coal, iron ore in concentrate, steel, rolled steel products. Headquartered in Moscow, it sells its products in Russia and overseas, and is formally known as ''Public ...
) were leased through auctions for money lent by commercial banks to the government. The auctions were rigged and lacked competition, being largely controlled by favored insiders with political connections or used for the benefit of the commercial banks themselves. As neither the loans nor the leased enterprises were returned in time, this effectively became a form of selling, or privatizing, state assets at very low prices. The privatization facilitated the transfer of significant wealth to a relatively small group of business oligarchs and New Russians, particularly
natural gas Natural gas (also fossil gas, methane gas, and gas) is a naturally occurring compound of gaseous hydrocarbons, primarily methane (95%), small amounts of higher alkanes, and traces of carbon dioxide and nitrogen, hydrogen sulfide and helium ...
and oil executives.


Obstacles to reform

The former Soviet Union had to deal with a number of unique obstacles during the post-Soviet transition including political reform, economic restructuring and the redrawing of political boundaries. The discomfort associated with these changes was not felt the same in each former Soviet republic. As a general rule, states to Russia's west, such as
Poland Poland, officially the Republic of Poland, is a country in Central Europe. It extends from the Baltic Sea in the north to the Sudetes and Carpathian Mountains in the south, bordered by Lithuania and Russia to the northeast, Belarus and Ukrai ...
,
Hungary Hungary is a landlocked country in Central Europe. Spanning much of the Pannonian Basin, Carpathian Basin, it is bordered by Slovakia to the north, Ukraine to the northeast, Romania to the east and southeast, Serbia to the south, Croatia and ...
, and the
Czech Republic The Czech Republic, also known as Czechia, and historically known as Bohemia, is a landlocked country in Central Europe. The country is bordered by Austria to the south, Germany to the west, Poland to the northeast, and Slovakia to the south ...
, have fared slightly better than their eastern neighbors since the collapse of the Eastern bloc, while Russia itself and countries to Russia's east experienced greater difficulties and found themselves on worse footing immediately after dissolution. A major reason that Russia's transition has been so wrenching is that it is remaking both its Soviet-era political and economic institutions at once. In addition to institutional reforms designed to create a new political-economic system, Russia was also charged with remaking itself into a new national state following the disintegration of the Soviet Union. The first major problem facing Russia was the legacy of the Soviet Union's enormous commitment to the
Cold War The Cold War was a period of global Geopolitics, geopolitical rivalry between the United States (US) and the Soviet Union (USSR) and their respective allies, the capitalist Western Bloc and communist Eastern Bloc, which lasted from 1947 unt ...
. In the late 1980s, the Soviet Union devoted a quarter of its gross economic output to the defense sector (at the time most Western analysts believed that this figure was 15 percent). At the time, the military-industrial complex employed at least one of every five adults in the Soviet Union. In some regions of Russia, at least half of the workforce was employed in defense plants (the comparable U.S. figures were roughly one-sixteenth of gross national product and about one of every sixteen in the workforce). These over-reliance on the military sector made Russian industry and human capital relatively noncompetitive upon entry into a market-oriented system. Furthermore, the end of the Cold War and the cutback in military spending affected industry quite dramatically making it difficult to quickly retool equipment, retrain workers, and find new markets. In the process of economic re-tooling, an enormous body of experience, qualified specialists and know-how was lost or misallocated, as the plants were sometimes switching from, for example, producing hi-tech military equipment to making kitchen utensils. A second obstacle, partly related to the sheer vastness and geographical diversity of the Russian landmass, was the sizable number of "mono-industrial" regional economies (regions dominated by a single industrial employer) that Russia inherited from the Soviet Union. The concentration of production in a relatively small number of big state enterprises meant that many local governments were entirely dependent on the economic health of a single employer; when the Soviet Union collapsed and the economic ties between Soviet republics and even regions were severed, the production in the whole country dropped by more than fifty percent. Roughly half of Russia's cities had only one large industrial enterprise, and three fourths had no more than four. Consequently, the decrease in production caused tremendous unemployment and underemployment. Thirdly, post-Soviet Russia did not inherit a system of state social security and welfare from the USSR. Instead the companies, mainly large industrial firms, were traditionally responsible for a broad range of social welfare functions—building and maintaining housing for their work forces, and managing health, recreational, educational, and similar facilities. The towns in contrast possessed neither the apparatus nor the funds for the provision of basic social services. Industrial employees were left heavily dependent on their firms. Thus, economic transformation created severe problems in maintaining social welfare since local governments were unable to assume finance or operational responsibility for these functions. Finally, there is a
human capital Human capital or human assets is a concept used by economists to designate personal attributes considered useful in the production process. It encompasses employee knowledge, skills, know-how, good health, and education. Human capital has a subs ...
dimension to the failure of post-Soviet reforms in Russia. The former Soviet population was not necessarily uneducated.
Literacy Literacy is the ability to read and write, while illiteracy refers to an inability to read and write. Some researchers suggest that the study of "literacy" as a concept can be divided into two periods: the period before 1950, when literacy was ...
was nearly universal, and the educational level of the Soviet population was among the highest in the world with respect to science, engineering, and some technical disciplines, although the Soviets devoted little to what would be described as "
liberal arts Liberal arts education () is a traditional academic course in Western higher education. ''Liberal arts'' takes the term ''skill, art'' in the sense of a learned skill rather than specifically the fine arts. ''Liberal arts education'' can refe ...
" in the West. With the move to a post-Communist system, the Russian university system collapsed. Rampant credential inflation in the Russian university system made it difficult for employers to determine who was really skilled and the problems of the higher education system more generally made it difficult to remedy other issues of human capital that came from the transition to a market-oriented system, such as upskilling and re-skilling. For example, former state enterprise managers were highly skilled at coping with the demands on them under the Soviet system of planned production targets, but discouraged the risk-and-reward centered behavior of market capitalism. These managers were responsible for a broad array of social welfare functions for their employees, their families, and the population of the towns and regions where they were located.
Profitability In economics, profit is the difference between revenue that an economic entity has received from its outputs and total costs of its inputs, also known as surplus value. It is equal to total revenue minus total cost, including both Explicit co ...
and
efficiency Efficiency is the often measurable ability to avoid making mistakes or wasting materials, energy, efforts, money, and time while performing a task. In a more general sense, it is the ability to do things well, successfully, and without waste. ...
, however, were generally not the most prominent priorities for Soviet enterprise managers. Thus, almost no Soviet employees or managers had firsthand experience with decision-making in the conditions of a
market economy A market economy is an economic system in which the decisions regarding investment, production, and distribution to the consumers are guided by the price signals created by the forces of supply and demand. The major characteristic of a mark ...
.


Depression

After the initial turmoil and euphoria of early marketizations, Russia's economy sank into deep depression by the mid-1990s due to botched reform efforts and low commodity prices globally but not before
George H. W. Bush George Herbert Walker BushBefore the outcome of the 2000 United States presidential election, he was usually referred to simply as "George Bush" but became more commonly known as "George H. W. Bush", "Bush Senior," "Bush 41," and even "Bush th ...
helped Yeltsin with "an unparalleled opportunity to change the nuclear posture of both the United States and the Soviet Union" and to end the
Cold War The Cold War was a period of global Geopolitics, geopolitical rivalry between the United States (US) and the Soviet Union (USSR) and their respective allies, the capitalist Western Bloc and communist Eastern Bloc, which lasted from 1947 unt ...
peacefully with the Nunn–Lugar cash-for-weapons scheme, in order to avoid the worst of the dissolution of the vast Soviet technological empire. Russia's economy was hit further by the financial crash of 1998 before experiencing a modest recovery in 1999–2000 as commodity prices began to rise again. According to Russian government statistics, the economic decline was far more severe than the
Great Depression The Great Depression was a severe global economic downturn from 1929 to 1939. The period was characterized by high rates of unemployment and poverty, drastic reductions in industrial production and international trade, and widespread bank and ...
was in the United States in terms of gross domestic product. In 1995, a little over 3% of the work force was officially registered as unemployed, but, in addition to the technically jobless, 4.4% of the labour force were working only part time, while a further 3.9% had been sent on involuntary leave. Also millions of Russians turned up for work each day, but were not paid by the employers. If all these categories of jobless, semi-employed and unpaid workers were taken into account, the 18% Russian unemployment figure cited in June 1995 by labour market expert Tatyana Maleva of the Institute of Economic Analysis seemed real. With unemployment benefits sufficient only to buy a small loaf of bread each day, trying to survive without some other income was not an option for those who lost jobs. They were toiling during the warmer months to grow food in family vegetable plots, selling newspapers or lottery tickets on the streets, busking, begging, turning to prostitution. Often they sank into the criminal underworld. In 1997, at least 98,400 companies were defaulting on payments to employees. It was estimated that one out of four Russian workers, or close on 20 million people, were not paid for months. Some were paid "in kind": for example, women workers were paid in brassieres and shoes that they resold in the streets, workers of Moskvich, the auto plant in Moscow, were paid in spare parts, those of the
Ivanovo Ivanovo (, ) is a types of inhabited localities in Russia, city in Russia and the administrative center and largest city of Ivanovo Oblast, located northeast of Moscow and approximately from Yaroslavl, Vladimir, Russia, Vladimir and Kostroma. ...
textile plants were paid in bedsheets, and those of the Gus-Khrustalny porcelain factory were paid in crystal and ceramic vases. By way of a domestic comparison, the post-Soviet economic decline was about half as severe as the economic catastrophe borne out of the immediate consequence of
World War I World War I or the First World War (28 July 1914 – 11 November 1918), also known as the Great War, was a World war, global conflict between two coalitions: the Allies of World War I, Allies (or Entente) and the Central Powers. Fighting to ...
, the fall of
Tsar Tsar (; also spelled ''czar'', ''tzar'', or ''csar''; ; ; sr-Cyrl-Latn, цар, car) is a title historically used by Slavic monarchs. The term is derived from the Latin word '' caesar'', which was intended to mean ''emperor'' in the Euro ...
ism, and the
Russian Civil War The Russian Civil War () was a multi-party civil war in the former Russian Empire sparked by the 1917 overthrowing of the Russian Provisional Government in the October Revolution, as many factions vied to determine Russia's political future. I ...
. Following the economic collapse of the early 1990s, Russia suffered from a sharp increase in the rates of
poverty Poverty is a state or condition in which an individual lacks the financial resources and essentials for a basic standard of living. Poverty can have diverse Biophysical environmen ...
and economic inequality. Estimates by the
World Bank The World Bank is an international financial institution that provides loans and Grant (money), grants to the governments of Least developed countries, low- and Developing country, middle-income countries for the purposes of economic development ...
based on both macroeconomic data and surveys of household incomes and expenditures indicate that whereas 1.5% of the population was living in poverty (defined as income below the equivalent of $25 per month) in the late Soviet era, by mid-1993 between 39% and 49% of the population was living in poverty. Per capita incomes fell by another 15% by 1998, according to government figures. Public health indicators show a dramatic corresponding decline. Although all post-Soviet countries experience an immediate decline in birth-rates due to economic turmoil this may have been particularly acute in Russia. In 1999, total population fell by about three-quarters of a million people. Meanwhile, life expectancy dropped for men from 64 years in 1990 to 57 years by 1994, while women's dropped from 74 to about 71. Both health factors and a sharp increase in deaths of the youth demographic from unnatural causes (such as murders, suicides, and accidents) have significantly contributed to this trend. Closely related to the declining life expectancy, alcohol-related deaths skyrocketed 60% in the 1990s and deaths from infectious and parasitic diseases shot up 100%, mainly because medicines were no longer affordable to the poor. While the opening of the Russian market to imports in the early 1990s meant the nation no longer suffered from the supply shortages of consumer goods that was often characteristic of the USSR (''see''
Consumer goods in the Soviet Union Consumer goods in the Soviet Union were usually produced by a two-category industry. Group A was "heavy industry", which included all goods that serve as an input required for the production of some other, final good. Group B was "consumer goods ...
), the relative impoverishment of the Russian people during this time meant only a limited number saw any significant benefit. Russians on fixed incomes (the vast majority of the workforce) saw their purchasing power drastically reduced, so while the stores might have been well stocked in the Yeltsin era, average people could now afford to buy little, if anything from these stores. By 2011, the average income has risen to more than $700 per month, emblematic of the mild recovery in recent years largely due to high oil prices. The growing revenue, however, has not been evenly distributed.
Social inequality Social inequality occurs when resources within a society are distributed unevenly, often as a result of inequitable allocation practices that create distinct unequal patterns based on socially defined categories of people. Differences in acce ...
has risen sharply since the 1990s with the
Gini coefficient In economics, the Gini coefficient ( ), also known as the Gini index or Gini ratio, is a measure of statistical dispersion intended to represent the income distribution, income inequality, the wealth distribution, wealth inequality, or the ...
, for example, reaching 42% by the end of 2010. Russia's income disparities are now nearly as large as
Brazil Brazil, officially the Federative Republic of Brazil, is the largest country in South America. It is the world's List of countries and dependencies by area, fifth-largest country by area and the List of countries and dependencies by population ...
(which has long been a world leader in the area) while regional disparities in the level of poverty continue to trend upwards.


Backlash

Structural reform and a severe devaluation of the ruble lowered the standard of living for most segments of the Russian population. As a result, there was powerful political opposition to reform. Democratization opened the political channels for venting these frustrations, which translated into votes for anti-reform candidates, especially those of the
Communist Party of the Russian Federation The Communist Party of the Russian Federation (CPRF; ) is a communist political party in Russia that officially adheres to Marxist–Leninist philosophy. It is the second-largest political party in Russia after United Russia. The youth o ...
and its allies in the
Duma A duma () is a Russian assembly with advisory or legislative functions. The term ''boyar duma'' is used to refer to advisory councils in Russia from the 10th to 17th centuries. Starting in the 18th century, city dumas were formed across Russia ...
. Russian voters, able to vote for opposition parties in the 1990s, often rejected economic reforms and yearned for the stability and personal security of the Soviet era. These were the groups that had enjoyed the benefits of Soviet-era state-controlled wages and prices, high state spending to subsidize priority sectors of the economy, protection from competition with foreign industries, and welfare entitlement programs. During the Yeltsin years in the 1990s, these anti-reformist groups were well organized, voicing their opposition to reform through strong trade unions, associations of directors of state-owned firms, and political parties in the popularly elected parliament whose primary constituencies were among those vulnerable to reform. A constant theme of Russian history in the 1990s was the conflict between economic reformers and those hostile to the new capitalism. In the 1990s, former Soviet bureaucrats, factory directors, aggressive businessmen and criminal organizations used insider deals, bribery and simple brute force in order to grab lucrative assets, which were previously state-owned. Russia's new "capitalists" spent millions of dollars for protection. However, almost every business in Russia, from curbside vendors to huge oil and gas companies, made payments to the organized crime for protection (" krysha"). Businessmen said that they needed the "krysha" because the laws and the court system were not functioning properly in Russia. The only way for them to enforce a contract was to turn to a criminal "krysha". They also used it to intimidate competitors, collect debts or take over new markets. It was also increasingly common for businesses to turn to the "red krysha" — corrupt police who ran
protection racket A protection racket is a type of racket and a scheme of organized crime perpetrated by a potentially hazardous organized crime group that generally guarantees protection outside the sanction of the law to another entity or individual from vio ...
s. Within this system, a sharp rise in
contract killing Contract killing (also known as murder-for-hire) is a form of murder or assassination in which one party hires another party to kill a targeted person or people. It involves an illegal agreement which includes some form of compensation, moneta ...
s developed.


Crisis


Constitutional crisis

The struggle for the center of power in Soviet Russia following the collapse of the Soviet Union and for the nature of the economic reforms culminated in a political crisis and bloodshed in the autumn of 1993. Yeltsin, who represented a course of radical privatization, was opposed by the Supreme Soviet. Confronted with opposition to the presidential power of decree and threatened with impeachment, he "dissolved" the parliament on 21 September, in contravention of the existing constitution, and ordered new elections and a referendum on a new constitution. The parliament then declared Yeltsin deposed and appointed Aleksandr Rutskoy acting president on 22 September. Tensions built quickly, and matters came to a head after street riots on 2 – 3 October. On 4 October, Yeltsin ordered Special Forces and elite army units to storm the parliament building, the "White House" as it is called. With tanks thrown against the small-arms fire of the parliamentary defenders, the outcome was not in doubt. Rutskoy,
Ruslan Khasbulatov Ruslan Imranovich Khasbulatov (, ; 22 November 1942 – 3 January 2023) was a Russian economist and politician and the former chairman of Parliament of Russia of Chechen descent who played a central role in the events leading to the 1993 co ...
, and the other parliamentary supporters surrendered and were immediately arrested and jailed. The official count was 147 dead, 437 wounded (with several men killed and wounded on the presidential side). Thus the transitional period in post-Soviet Russian politics came to an end. A new constitution was approved by referendum in December 1993. Russia was given a strongly presidential system. Radical privatization went ahead. Although the old parliamentary leaders were released without trial on 26 February 1994, they would not play an open role in politics thereafter. Though its clashes with the executive would eventually resume, the remodeled Russian parliament had greatly circumscribed powers. (''For details on the constitution passed in 1993 see Constitution and government structure of Russia.'')


First Chechen War

In 1994, Yeltsin dispatched 40,000 troops to the southern region of
Chechnya Chechnya, officially the Chechen Republic, is a Republics of Russia, republic of Russia. It is situated in the North Caucasus of Eastern Europe, between the Caspian Sea and Black Sea. The republic forms a part of the North Caucasian Federa ...
to prevent its secession from Russia. Living south of Moscow, the predominantly Muslim
Chechens The Chechens ( ; , , Old Chechen: Нахчой, ''Naxçoy''), historically also known as ''Kistin, Kisti'' and ''Durdzuks'', are a Northeast Caucasian languages, Northeast Caucasian ethnic group of the Nakh peoples native to the North Caucasus. ...
for centuries had gloried in defying Russia. Dzhokhar Dudayev, Chechnya's nationalist president, was driven to take his republic out of the Russian Federation, declaring independence in 1991. Gripped by the chaos of the Soviet Union's ongoing dissolution, Chechnya initially operated as a de facto independent nation-though this status was never recognized by Russia. In 1994, the
Russian Armed Forces The Armed Forces of the Russian Federation, commonly referred to as the Russian Armed Forces, are the military of Russia. They are organized into three service branches—the Russian Ground Forces, Ground Forces, Russian Navy, Navy, and Russi ...
invaded and quickly became submerged in a military quagmire. In January 1995, the Russian army and air force commenced a siege of the Chechen capital of
Grozny Grozny (, ; ) is the capital city of Chechnya, Russia. The city lies on the Sunzha River. According to the 2021 Russian census, 2021 census, it had a population of 328,533 — up from 210,720 recorded in the 2002 Russian Census, 2002 ce ...
; about 25,000 Chechen civilians died under week-long air raids and artillery fire in the sealed-off city. Massive use of artillery and air-strikes remained the dominating strategy throughout the Russian campaign. Even so, Chechen forces seized thousands of Russian hostages, while inflicting humiliating losses on the demoralized and ill-equipped Russian troops. The Russians finally managed to gain control of Grozny by February 1995 after heavy fighting. In August 1996, Yeltsin agreed to a ceasefire with Chechen leaders, and a peace treaty was formally signed in May 1997. However, the conflict resumed in 1999; this time the rebellion was crushed by
Vladimir Putin Vladimir Vladimirovich Putin (born 7 October 1952) is a Russian politician and former intelligence officer who has served as President of Russia since 2012, having previously served from 2000 to 2008. Putin also served as Prime Minister of Ru ...
.


Rise of the oligarchs

The new capitalist opportunities presented by the opening of the Russian economy in the late 1980s and early 1990s affected many people's interests. As the Soviet system was being dismantled, well-placed bosses and technocrats in the Communist Party, KGB, and
Komsomol The All-Union Leninist Young Communist League, usually known as Komsomol, was a political youth organization in the Soviet Union. It is sometimes described as the youth division of the Communist Party of the Soviet Union (CPSU), although it w ...
(Soviet Youth League) were cashing in on their Soviet-era power and privileges. Some quietly liquidated the assets of their organization and secreted the proceeds in overseas accounts and investments. Others created banks and business in Russia, taking advantage of their insider positions to win exclusive government contracts and licenses and to acquire financial credits and supplies at artificially low, state-subsidized prices in order to transact business at high, market-value prices. Great fortunes were made almost overnight. Between 1987 and 1992, trading of natural resources and foreign currencies, as well as imports of highly demanded consumer goods and then domestic production of their rudimentary substitutes, rapidly enabled these pioneering entrepreneurs to accumulate considerable wealth. In turn, the emerging cash-based, highly opaque markets provided a breeding ground for a large number of racket gangs. By the mid-1990s, the best-connected former
nomenklatura The ''nomenklatura'' (; from , system of names) were a category of people within the Soviet Union and other Eastern Bloc countries who held various key administrative positions in the bureaucracy, running all spheres of those countries' activity: ...
leaders accumulated considerable financial resources, while on the other hand, the most successful entrepreneurs became acquainted with government officials and public politicians. The privatization of state enterprises was a unique opportunity because it gave many of those who had gained wealth in the early 1990s a chance to convert it into shares of privatized enterprises. The Yeltsin government hoped to use privatization to spread ownership of shares in former state enterprises as widely as possible to create political support for his government and his reforms. The government used a system of free vouchers as a way to give mass privatization a jump-start. But it also allowed people to purchase shares of stock in privatized enterprises with
cash In economics, cash is money in the physical form of currency, such as banknotes and coins. In book-keeping and financial accounting, cash is current assets comprising currency or currency equivalents that can be accessed immediately or near-i ...
. Even though initially each citizen received a voucher of equal face value, within months most of the vouchers converged in the hands of intermediaries who were ready to buy them for cash right away. As the government ended the
voucher privatization Voucher privatization (, ) is a privatization method where citizens are given or can inexpensively buy a book of vouchers that represent potential shares in any state-owned company. Voucher privatization has mainly been used in the early to mid-1 ...
phase and launched cash privatization, it devised a program that it thought would simultaneously speed up privatization and yield the government a much-needed infusion of cash for its operating needs. Under the scheme, which quickly became known in the West as "loans for shares," the Yeltsin regime auctioned off substantial packages of stock shares in some of its most desirable enterprises, such as
energy Energy () is the physical quantity, quantitative physical property, property that is transferred to a physical body, body or to a physical system, recognizable in the performance of Work (thermodynamics), work and in the form of heat and l ...
,
telecommunications Telecommunication, often used in its plural form or abbreviated as telecom, is the transmission of information over a distance using electronic means, typically through cables, radio waves, or other communication technologies. These means of ...
, and
metallurgical Metallurgy is a domain of materials science and engineering that studies the physical and chemical behavior of metallic elements, their inter-metallic compounds, and their mixtures, which are known as alloys. Metallurgy encompasses both the ...
firms, as collateral for bank loans. In exchange for the loans, the state handed over assets worth many times as much. Under the terms of the deals, if the Yeltsin government did not repay the loans by September 1996, the lender acquired title to the stock and could then resell it or take an equity position in the enterprise. The first
auction An auction is usually a process of Trade, buying and selling Good (economics), goods or Service (economics), services by offering them up for Bidding, bids, taking bids, and then selling the item to the highest bidder or buying the item from th ...
s were held in the fall of 1995. The auctions themselves were usually held in such a way so to limit the number of banks bidding for shares and thus to keep the auction prices extremely low. By summer 1996, major packages of shares in some of Russia's largest firms had been transferred to a small number of major banks, thus allowing a handful of powerful banks to acquire substantial ownership shares over major firms at shockingly low prices. These deals were effectively giveaways of valuable state assets to a few powerful, well-connected, and wealthy financial groups. The concentration of immense financial and industrial power, which loans for shares had assisted, extended to the mass media. One of the most prominent of the financial barons Boris Berezovsky, who controlled major stakes in several banks and companies, exerted an extensive influence over state
television Television (TV) is a telecommunication medium for transmitting moving images and sound. Additionally, the term can refer to a physical television set rather than the medium of transmission. Television is a mass medium for advertising, ...
programming for a while. Berezovsky and other ultra-wealthy, well-connected tycoons who controlled these great empires of finance, industry, energy, telecommunications, and media became known as the "
Russian oligarchs Russian oligarchs () are business oligarchs of the former Soviet republics who rapidly accumulated wealth in the 1990s via the Russian privatisation that followed the dissolution of the Soviet Union. The failing Soviet state left the ownershi ...
". Along with Berezovsky,
Mikhail Khodorkovsky Mikhail Borisovich Khodorkovsky (, ; born 26 June 1963), sometimes known by his initials MBK, is an exiled Russian businessman, Russian oligarchs, oligarch, and Russian opposition, opposition activist, now residing in London. In 2003, Khodork ...
,
Roman Abramovich Roman Arkadyevich Abramovich (born 24 October 1966) is a business oligarch and politician. He is the former owner of Chelsea F.C., Chelsea, a Premier League football club in London, England, and is the primary owner of the private investment com ...
,
Vladimir Potanin Vladimir Olegovich Potanin (; born 3 January 1961) is a Russian oligarch. He acquired his wealth notably through the controversial loans-for-shares program in Russia in the early to mid-1990s. As of May 7, 2025, Forbes ranked 81st richest in ...
,
Vladimir Bogdanov Vladimir Leonidovich Bogdanov (; born 28 May 1951) is a Russian businessman and oil business magnate, tycoon. Biography and career In 1973, he graduated from Industrial University of Tyumen, Tyumen Industrial Institute with a degree in oil an ...
, Rem Viakhirev, Vagit Alekperov,
Viktor Chernomyrdin Viktor Stepanovich Chernomyrdin (, ; 9 April 19383 November 2010) was a Soviet and Russian politician and businessman. He was the Minister of Gas Industry of the Soviet Union (13 February 1985 – 17 July 1989), after which he became first chairm ...
, Viktor Vekselberg, and
Mikhail Fridman Mikhail Maratovich Fridman (also transliterated Mikhail Friedman; ; ; born 21 April 1964) is a Ukrainian-born, Russian–Israeli tycoon and Russian oligarchs, oligarch. He is one of the co-founders of Alfa Group, Alfa-Group, a multinational Rus ...
emerged as Russia's most powerful and prominent oligarchs. A tiny clique who used their connections built up during the last days of the Soviet years to appropriate Russia's vast resources during the rampant privatizations of the Yeltsin years, the oligarchs emerged as the most hated men in the nation. The Western world generally advocated a quick dismantling of the Soviet
planned economy A planned economy is a type of economic system where investment, production and the allocation of capital goods takes place according to economy-wide economic plans and production plans. A planned economy may use centralized, decentralized, ...
to make way for free-market reforms but later expressed disappointment over the newfound power and corruption of the oligarchs.


Presidential election of 1996


Campaigns

Early in the campaign it had been thought that Yeltsin, who was in uncertain health (after recuperating from a series of heart attacks) and whose behavior was sometimes erratic, had little chance for reelection. When campaigning opened at the beginning of 1996, Yeltsin's popularity was close to zero. Meanwhile, the opposition
Communist Party of the Russian Federation The Communist Party of the Russian Federation (CPRF; ) is a communist political party in Russia that officially adheres to Marxist–Leninist philosophy. It is the second-largest political party in Russia after United Russia. The youth o ...
had already gained ground in parliamentary voting on 17 December 1995, and its candidate,
Gennady Zyuganov Gennady Andreyevich Zyuganov (; born 26 June 1944) is a Russian politician who has been the General Secretary of the Communist Party of the Russian Federation and served as Member of the State Duma since 1993. He is also the Chair of the Union ...
, had a strong grassroots organization, especially in the rural areas and small towns, and appealed effectively to memories of the old days of Soviet prestige on the international stage and the socialist domestic order. Panic struck the Yeltsin team when opinion polls suggested that the ailing president could not win; members of his entourage urged him to cancel presidential elections and effectively rule as dictator from then on. Instead, Yeltsin changed his campaign team, assigning a key role to his daughter, Tatyana Dyachenko, and appointing
Anatoly Chubais Anatoly Borisovich Chubais (; born 16 June 1955) is a Russian- Israeli politician and economist who was responsible for privatization in Russia as an influential member of Boris Yeltsin's administration in the early 1990s. During this period, ...
campaign manager. Chubais, who was not just Yeltsin's campaign manager but also the architect of Russia's privatization program, set out to use his control of the privatization program as the key instrument of Yeltsin's reelection campaign. In addition, American lobbyists spent millions of dollars to see Yeltsin elected. The president's inner circle assumed that it had only a short time in which to act on privatization; it, therefore, needed to take steps that would have a large and immediate impact, making the reversal of reform prohibitively costly for their opponents. Chubais' solution was to co-opt potentially powerful interests, including enterprise directors and regional officials, in order to ensure Yeltsin's reelection. The position of the enterprise directors to the program was essential to maintaining economic and social stability in the country. The managers represented one of the most powerful collective interests in the country; it was the enterprise managers who could ensure that labor did not erupt in a massive wave of strikes. The government, therefore, did not strenuously resist the tendency for voucher privatization to turn into "insider privatization," as it was termed, in which senior enterprise officials acquired the largest proportion of shares in privatized firms. Thus, Chubais allowed well-connected employees to acquire majority stakes in the enterprises. This proved to be the most widely used form of privatization in Russia. Three-quarters of privatized enterprises opted for this method, most often using vouchers. Real control thus wound up in the hands of the managers. Support from the oligarchs was also crucial to Yeltsin's reelection campaign. The "loans for shares" giveaway took place in the run-up to the 1996 presidential election—at a point when it had appeared that Zyuganov might defeat Yeltsin. Yeltsin and his entourage gave the oligarchs an opportunity to scoop up some of Russia's most desirable assets in return for their help in his reelection effort. The oligarchs, in turn, reciprocated the favor. In the spring of 1996, with Yeltsin's popularity at a low ebb, Chubais and Yeltsin recruited a team of six leading Russian financiers and media barons (all oligarchs) who bankrolled the Yeltsin campaign with $3 million and guaranteed coverage on television and in leading newspapers directly serving the president's campaign strategy. The media painted a picture of a fateful choice for Russia, between Yeltsin and a "return to totalitarianism." The oligarchs even played up the threat of civil war if a Communist were elected president. In the outlying regions of the country, the Yeltsin campaign relied on its ties to other allies—the patron-client ties of the local governors, most of whom had been appointed by the president. The Zyuganov campaign had a strong grass-roots organization, but it was simply no match for the financial resources and access to patronage that the Yeltsin campaign could marshal. Yeltsin campaigned energetically, dispelling concerns about his health, exploiting all the advantages of incumbency to maintain a high media profile. To assuage voters' discontent, he made the claim that he would abandon some unpopular economic reforms and boost welfare spending, end the war in
Chechnya Chechnya, officially the Chechen Republic, is a Republics of Russia, republic of Russia. It is situated in the North Caucasus of Eastern Europe, between the Caspian Sea and Black Sea. The republic forms a part of the North Caucasian Federa ...
, pay wage and pension arrears, and abolish military conscription (he did not live up to his promises after the election, except for ending the Chechen war, which was halted for 3 years). Yeltsin's campaign also got a boost from the announcement of a $10 billion loan to the Russian government from the International Monetary Fund. Grigory Yavlinsky was the liberal alternative to Yeltsin and Zyuganov. He appealed to a well-educated middle class that saw Yeltsin as an incompetent alcoholic and Zyuganov as a Soviet-era throwback. Seeing Yavlinsky as a threat, Yeltsin's inner circle of supporters worked to bifurcate political discourse, thus excluding a middle ground—and convince voters that only Yeltsin could defeat the Communist "menace." The election became a two-man race, and Zyuganov, who lacked Yeltsin's resources and financial backing, watched helplessly as his strong initial lead was whittled away.


Elections

Voter turnout in the first round of the polling on 16 June was 69.8%. According to returns announced on 17 June, Yeltsin won 35% of the vote; Zyuganov won 32%; Aleksandr Lebed, a populist ex-general, a surprisingly high 14.5%; liberal candidate Grigory Yavlinsky 7.4%; far-right nationalist
Vladimir Zhirinovsky Vladimir Volfovich Zhirinovsky (, , né Eidelstein, ; 25 April 1946 – 6 April 2022) was a Russian right-wing populist politician and the leader of the Liberal Democratic Party of Russia (LDPR) from its creation in 1992 until his death in 20 ...
5.8%; and former Soviet president
Mikhail Gorbachev Mikhail Sergeyevich Gorbachev (2 March 1931 – 30 August 2022) was a Soviet and Russian politician who served as the last leader of the Soviet Union from 1985 to dissolution of the Soviet Union, the country's dissolution in 1991. He served a ...
0.5%. With no candidate securing an absolute majority, Yeltsin and Zyuganov went into a second round of voting. In the meantime, Yeltsin co-opted a large segment of the electorate by appointing Lebed to the posts of national security adviser and secretary of the Security Council. In the end, Yeltsin's election tactics paid off. In the run-off on 3 July, with a turnout of 68.9%, Yeltsin won 53.8% of the vote and Zyuganov 40.3%, with the rest (5.9%) voting "against all".
Moscow Moscow is the Capital city, capital and List of cities and towns in Russia by population, largest city of Russia, standing on the Moskva (river), Moskva River in Central Russia. It has a population estimated at over 13 million residents with ...
and
Saint Petersburg Saint Petersburg, formerly known as Petrograd and later Leningrad, is the List of cities and towns in Russia by population, second-largest city in Russia after Moscow. It is situated on the Neva, River Neva, at the head of the Gulf of Finland ...
(formerly Leningrad) together provided over half of the incumbent president's support, but he also did well in large cities in the Urals and in the north and northeast. Yeltsin lost to Zyuganov in Russia's southern industrial heartland. The southern stretch of the country became known as the " red belt", underscoring the resilience of the Communist Party in elections since the breakup of the Soviet Union. Although Yeltsin promised that he would abandon his unpopular
neoliberal Neoliberalism is a political and economic ideology that advocates for free-market capitalism, which became dominant in policy-making from the late 20th century onward. The term has multiple, competing definitions, and is most often used pej ...
austerity policies and increase public spending to help those suffering from the pain of capitalist reforms, within a month of his election, Yeltsin issued a decree canceling almost all of these promises. Right after the election, Yeltsin's physical health and mental stability were increasingly precarious. Many of his executive functions thus devolved upon a group of advisers (most of whom had close links with the oligarchs).


Financial collapse

The global recession of 1998, which started with the
Asian financial crisis The 1997 Asian financial crisis gripped much of East and Southeast Asia during the late 1990s. The crisis began in Thailand in July 1997 before spreading to several other countries with a ripple effect, raising fears of a worldwide economic meltd ...
in July 1997, exacerbated Russia's continuing economic crisis. Given the ensuing decline in world commodity prices, countries heavily dependent on the export of raw materials such as oil were among those most severely hit. Oil,
natural gas Natural gas (also fossil gas, methane gas, and gas) is a naturally occurring compound of gaseous hydrocarbons, primarily methane (95%), small amounts of higher alkanes, and traces of carbon dioxide and nitrogen, hydrogen sulfide and helium ...
,
metal A metal () is a material that, when polished or fractured, shows a lustrous appearance, and conducts electrical resistivity and conductivity, electricity and thermal conductivity, heat relatively well. These properties are all associated wit ...
s, and
timber Lumber is wood that has been processed into uniform and useful sizes (dimensional lumber), including beams and planks or boards. Lumber is mainly used for construction framing, as well as finishing (floors, wall panels, window frames). ...
account for more than 80% of Russian exports, leaving the country vulnerable to swings in world prices. Oil is also a major source of government tax revenue which brought significant negative implications for Russia's fiscal situation, foreign exchange stores and ultimately, the value of the ruble. The pressures on the ruble, reflecting the weakness of the economy, resulted in a disastrous fall in the value of the currency. Massive
tax evasion Tax evasion or tax fraud is an illegal attempt to defeat the imposition of taxes by individuals, corporations, trusts, and others. Tax evasion often entails the deliberate misrepresentation of the taxpayer's affairs to the tax authorities to red ...
continued and accelerated due to financial instability and decreasing government capacity. This further decreased government revenues and soon, the central government found itself unable to service the massive loans it had accumulated and ultimately was even unable to pay its employees. The government stopped making timely payment of wages, pensions, and debts to suppliers; and when workers were paid, it was often with bartered goods rather than rubles. Coal miners were especially hard hit, and for several weeks in the summer they blocked sections of the Trans-Siberian railroad with protests, effectively cutting the country in two. As time wore on, they added calls for the resignation of Yeltsin in addition to their demands for wages. A political crisis came to a head in March when Yeltsin suddenly dismissed Prime Minister Viktor Chernomyrdin and his entire cabinet on 23 March. Yeltsin named a virtually unknown technocrat, Energy Minister
Sergei Kiriyenko Sergey Vladilenovich Kiriyenko (''Birth name, né'' ''Izraitel''; ; born 26 July 1962) is a Russian politician who has served as First Deputy Chief of Staff of the Presidential Administration of Russia since 5 October 2016. He previously served ...
, aged 35, as acting prime minister. Russian observers expressed doubts about Kiriyenko's youth and inexperience. The Duma rejected his nomination twice. Only after a month-long standoff, during which Yeltsin threatened to dissolve the legislature, did the Duma confirm Kiriyenko on a third vote on 24 April. Kiriyenko appointed a new cabinet strongly committed to stemming the fall in the value of Russia's currency. The oligarchs strongly supported Kiriyenko's efforts to maintain the exchange rate. A high exchange rate meant that they needed fewer rubles to buy imported goods, especially luxury items. In an effort to prop up the currency and stem the flight of capital, Kiriyenko hiked interest rates to 150% in order to attract buyers for government bonds. But concerns about the financial crisis in Asia and the slump in world oil prices were already prompting investors to withdraw from Russia. By mid-1998, it was clear Russia would need help from IMF to maintain its exchange rate. The Russian crisis caused alarm in the West. Pouring more money into the Russian economy would not be a long-term solution, but the U.S. in particular feared that Yeltsin's government would not survive a looming financial crisis without IMF help. U.S. President
Bill Clinton William Jefferson Clinton (né Blythe III; born August 19, 1946) is an American politician and lawyer who was the 42nd president of the United States from 1993 to 2001. A member of the Democratic Party (United States), Democratic Party, ...
's treasury secretary,
Robert Rubin Robert Edward Rubin (born August 29, 1938) is an American retired banking executive, lawyer, and former Federal government of the United States, government official. He served as the 70th United States Secretary of the Treasury, U.S. secretary o ...
, also feared that a Russian collapse could create a panic on world money markets (and it indeed did help bring down one major US hedge fund
Long-Term Capital Management Long-Term Capital Management L.P. (LTCM) was a highly leveraged hedge fund. In 1998, it received a $3.6 billion bailout from a group of 14 banks, in a deal brokered and put together by the Federal Reserve Bank of New York. LTCM was founded in ...
). The IMF approved a $22.6 billion emergency loan on 13 July. Despite the bailout, Russia's monthly interest payments still well exceeded its monthly tax revenues. Realizing that this situation was unsustainable, investors continued to flee Russia despite the IMF bailout. Weeks later the financial crisis resumed and the value of the ruble resumed its fall, and the government fell into a self-perpetuating trap. To pay off the interest on the loans it had taken, it needed to raise still more cash, which it did through foreign borrowing. As lenders became increasingly certain that the government could not make good on its obligations, they demanded ever-higher interest rates, deepening the trap. Ultimately the bubble burst. On 17 August, Kiriyenko's government and the central bank were forced to suspend payment on Russia's foreign debt for 90 days, restructure the nation's entire debt, and devalue the ruble. The ruble went into free fall as Russians sought frantically to buy dollars. Western creditors lost heavily, and a large part of Russia's fledgling banking sector was destroyed, since many banks had substantial dollar borrowings. Foreign investment rushed out of the country, and financial crisis triggered an unprecedented flight of capital from Russia.


Political fallout

The financial collapse produced a political crisis, as Yeltsin, with his domestic support evaporating, had to contend with an emboldened opposition in the parliament. A week later, on 23 August, Yeltsin fired Kiryenko and declared his intention of returning Chernomyrdin to office as the country slipped deeper into economic turmoil. Powerful business interests, fearing another round of reforms that might cause leading concerns to fail, welcomed Kiriyenko's fall, as did the Communists. Yeltsin, who began to lose his hold as his health deteriorated, wanted Chernomyrdin back, but the legislature refused to give its approval. After the Duma rejected Chernomyrdin's candidacy twice, Yeltsin, his power clearly on the wane, backed down. Instead, he nominated Foreign Minister
Yevgeny Primakov Yevgeny Maksimovich Primakov (29 October 1929 – 26 June 2015, ) was a Russian politician and diplomat who served as Prime Minister of Russia from 1998 to 1999. During his long career, he also served as Minister of Foreign Affairs from 1996 to ...
, who on 11 September was overwhelmingly approved by the Duma. Primakov's appointment restored political stability because he was seen as a compromise candidate able to heal the rifts between Russia's quarreling interest groups. There was popular enthusiasm for Primakov as well. Primakov promised to make the payment of wage and pension arrears his government's first priority, and invited members of the leading parliamentary factions into his Cabinet. Communists and trade unionists staged a nationwide strike on 7 October, and called on President Yeltsin to resign. On 9 October, Russia, which was also suffering from a bad harvest, appealed for international humanitarian aid, including food.


Recovery

Russia bounced back from the August 1998 financial crash with surprising speed. Much of the reason for the recovery is that world oil prices rapidly rose during 1999–2000 (just as falling energy prices on the world market had deepened Russia's financial troubles) so that Russia ran a large trade surplus in 1999 and 2000. Another reason is that domestic industries such as food processing have benefited from the devaluation, which caused a steep increase in the prices of imported goods. Also, since Russia's economy was operating to such a large extent on barter and other non-monetary instruments of exchange, the financial collapse had far less of an impact on many producers than it would had the economy been dependent on a banking system. Finally, the economy has been helped by an infusion of cash; as enterprises were able to pay off arrears in back wages and taxes, it, in turn, allowed consumer demand for the goods and services of Russian industry to rise. For the first time in many years, unemployment in 2000 fell as enterprises added workers. Nevertheless, the political and social equilibrium of the country remains tenuous to this day, and power remains a highly personalized commodity. The economy remains vulnerable to downturn if, for instance, world oil prices fall at a dramatic pace.


Succession crisis

Yevgeny Primakov did not remain in his post long. Yeltsin grew suspicious that Primakov was gaining in strength and popularity and dismissed him in May 1999, after only eight months in office. Yeltsin then named Sergei Stepashin, who had formerly been head of the FSB (the successor agency to the
KGB The Committee for State Security (, ), abbreviated as KGB (, ; ) was the main security agency of the Soviet Union from 1954 to 1991. It was the direct successor of preceding Soviet secret police agencies including the Cheka, Joint State Polit ...
) and later been Interior Minister, to replace him. The Duma confirmed his appointment on the first ballot by a wide margin. Stepashin's tenure was even shorter than Primakov's. In August 1999, Yeltsin once again abruptly dismissed the government and named
Vladimir Putin Vladimir Vladimirovich Putin (born 7 October 1952) is a Russian politician and former intelligence officer who has served as President of Russia since 2012, having previously served from 2000 to 2008. Putin also served as Prime Minister of Ru ...
as his candidate to head the new government. Like Stepashin, Putin had a background in the secret police, having made his career in the foreign intelligence service and later as head of the FSB. Yeltsin went so far as to declare that he saw Putin as his successor as president. The Duma narrowly voted to confirm Putin. When appointed, Putin was a relatively unknown politician, but he quickly established himself both in public opinion and in Yeltsin's estimation as a trusted head of government, largely due to the
Second Chechen War Names The Second Chechen War is also known as the Second Chechen Campaign () or the Second Russian Invasion of Chechnya from the Chechens, Chechen insurgents' point of view.Федеральный закон № 5-ФЗ от 12 января 19 ...
. Just days after Yeltsin named Putin as a candidate for prime minister, Chechen forces engaged the Russian army in
Dagestan Dagestan ( ; ; ), officially the Republic of Dagestan, is a republic of Russia situated in the North Caucasus of Eastern Europe, along the Caspian Sea. It is located north of the Greater Caucasus, and is a part of the North Caucasian Fede ...
, a Russian autonomy near
Chechnya Chechnya, officially the Chechen Republic, is a Republics of Russia, republic of Russia. It is situated in the North Caucasus of Eastern Europe, between the Caspian Sea and Black Sea. The republic forms a part of the North Caucasian Federa ...
. In the next month, several hundred people died in apartment building bombings in Moscow and other cities, bombings Russian authorities attributed to Chechen rebels. In response, the Russian army entered Chechnya in late September 1999, starting the Second Chechen War. The Russian public at the time, angry over the
terrorist Terrorism, in its broadest sense, is the use of violence against non-combatants to achieve political or ideological aims. The term is used in this regard primarily to refer to intentional violence during peacetime or in the context of war aga ...
bombings, widely supported the war. The support translated into growing popularity for Putin, who had taken decisive action in Chechnya. After the success of political forces close to Putin in the December 1999 parliamentary elections, Yeltsin evidently felt confident enough in Putin that he resigned from the presidency on 31 December, six months before his term was due to expire. This made Putin acting president and gave Putin ample opportunity to position himself as the frontrunner for the Russian presidential election held on 26 March 2000, which he won. The Chechen War figured prominently in the campaign. In February 2000, Russian troops entered
Grozny Grozny (, ; ) is the capital city of Chechnya, Russia. The city lies on the Sunzha River. According to the 2021 Russian census, 2021 census, it had a population of 328,533 — up from 210,720 recorded in the 2002 Russian Census, 2002 ce ...
, the Chechen capital, and a week before the election, Putin flew to Chechnya on a fighter jet, claiming victory.


Putin era

In August 2000, the Russian submarine K-141 Kursk suffered an explosion, causing the submarine to sink in the shallow area of the
Barents Sea The Barents Sea ( , also ; , ; ) is a marginal sea of the Arctic Ocean, located off the northern coasts of Norway and Russia and divided between Norwegian and Russian territorial waters.World Wildlife Fund, 2008. It was known earlier among Russi ...
. Russia organized a vigorous but hectic attempt to save the crew, and the entire futile effort was surrounded by unexplained secrecy. This, as well as the slow initial reaction to the event and especially to the offers of foreign aid in saving the crew, brought much criticism on the government and personally on President Putin. On 23 October 2002, Chechen separatists took over a Moscow theater. Over 700 people inside were taken hostage in what has been called the
Moscow theater hostage crisis The Moscow theater hostage crisis, also known as the 2002 Nord-Ost siege, was the seizure of the crowded Dubrovka Theater in Moscow by Chechen terrorists on 23 October 2002, resulting in the taking of 912 hostages. The attackers, led by Movs ...
. The separatists demanded the immediate withdrawal of Russian forces from Chechnya and threatened to blow up the building if authorities attempted to enter. Three days later, Russian commandos stormed the building after the hostages had been subdued with a sleeping gas, shooting the unconscious militants, and killing over 100 civilian hostages with the sleeping gas in the process. In the aftermath of the theater siege, Putin began renewed efforts to eliminate the Chechen insurrection. (''For additional details on the war in Chechnya under Putin, see
Second Chechen War Names The Second Chechen War is also known as the Second Chechen Campaign () or the Second Russian Invasion of Chechnya from the Chechens, Chechen insurgents' point of view.Федеральный закон № 5-ФЗ от 12 января 19 ...
.'') The government canceled scheduled troop withdrawals, surrounded Chechen refugee camps with soldiers, and increased the frequency of assaults on separatist positions. Chechen militants responded in kind, stepping up guerrilla operations and rocket attacks on federal helicopters. Several high-profile attacks have taken place. In May 2004, Chechen separatists assassinated Akhmad Kadyrov, the pro-Russia Chechen leader who became the president of Chechnya 8 months earlier after an election conducted by Russian authorities. On 24 August 2004, two Russian aircraft were bombed. This was followed by the Beslan school hostage crisis in which Chechen separatists took 1,300 hostages. The initially high public support for the war in Chechnya has declined. Putin has confronted several very influential oligarchs ( Vladimir Gusinsky, Boris Berezovsky and
Mikhail Khodorkovsky Mikhail Borisovich Khodorkovsky (, ; born 26 June 1963), sometimes known by his initials MBK, is an exiled Russian businessman, Russian oligarchs, oligarch, and Russian opposition, opposition activist, now residing in London. In 2003, Khodork ...
, in particular) who attained large stakes of state assets, allegedly through illegal schemes, during the privatization process. Gusinsky and Berezovsky have been forced to leave Russia and give up parts of their assets. Khodorkovsky was jailed in Russia and has lost his
YUKOS OJSC "Yukos Oil Company" (, ) was an oil and gas company based in Moscow, Russia. Yukos was acquired from the Russian government by Russian oligarch Mikhail Khodorkovsky's Bank Menatep during the controversial "loans for shares" auctions of ...
company, formerly the largest oil producer in Russia. Putin's stand against oligarchs is generally popular with the Russian people, even though the jailing of Khodorkovsky was mainly seen as part of a takeover operation by government officials, according to another Levada-Center poll. These confrontations have also led to Putin establishing control over Russian media outlets previously owned by the oligarchs. In 2001 and 2002, TV channels NTV (previously owned by Gusinsky), TV6 and TVS (owned by Berezovsky) were all taken over by media groups loyal to Putin. Similar takeovers have also occurred with print media. Putin's popularity, which stems from his reputation as a strong leader, stands in contrast to the unpopularity of his predecessor, but it hinges on a continuation of economic recovery. Putin came into office at an ideal time: after the devaluation of the
ruble The ruble or rouble (; rus, рубль, p=rublʲ) is a currency unit. Currently, currencies named ''ruble'' in circulation include the Russian ruble (RUB, ₽) in Russia and the Belarusian ruble (BYN, Rbl) in Belarus. These currencies are s ...
in 1998, which boosted demand for domestic goods, and while world
oil price The price of oil, or the oil price, generally refers to the spot price of a Oil barrel, barrel () of benchmark crude oil—a reference price for buyers and sellers of crude oil such as West Texas Intermediate (WTI), Brent Crude, Dubai Crud ...
s were rising. Indeed, during the seven years of his presidency, real GDP grew on average 6.7% a year, average income increased 11% annually in real terms, and a consistently positive balance of the federal budget enabled the government to cut 70% of the external debt (according to the
Institute for Complex Strategic Studies An institute is an organizational body created for a certain purpose. They are often research organisations (research institutes) created to do research on specific topics, or can also be a professional body. In some countries, institutes c ...
). Thus, many credited him with the recovery, but his ability to withstand a sudden economic downturn has been untested. Putin won the Russian presidential election in March 2004 without any significant competition. Some researchers assert that most Russians (as of 2007) have come to regret the collapse of the
Soviet Union The Union of Soviet Socialist Republics. (USSR), commonly known as the Soviet Union, was a List of former transcontinental countries#Since 1700, transcontinental country that spanned much of Eurasia from 1922 until Dissolution of the Soviet ...
in 1991. On repeated occasions, even Vladimir Putin—Boris Yeltsin's handpicked successor — stated that the fall of Soviet rule had led to few gains and many problems for most Russian citizens. In a campaign speech in February 2004, for example, Putin called the dismantlement of the Soviet Union a "national tragedy on an enormous scale," from which "only the elites and nationalists of the republics gained." He added, "I think that ordinary citizens of the former Soviet Union and the post-Soviet space gained nothing from this. On the contrary, people have faced a huge number of problems." Putin's international prestige suffered a major blow in the West during the disputed
2004 Ukrainian presidential election Presidential elections were held in Ukraine on 31 October, 21 November, 26 December 2004 and 1 January 2005. This was the fourth Ukrainian presidential elections, presidential election in Ukraine following independence from the Soviet Union. The ...
. Putin had twice visited Ukraine before the election to show his support for the pro-Russian
Viktor Yanukovych Viktor Fedorovych Yanukovych (born 9 July 1950) is a Ukrainian politician who served as the fourth president of Ukraine from 2010 to 2014. He also served as the prime minister of Ukraine several times between 2002 and 2007 and was a member of t ...
against opposition leader
Viktor Yushchenko Viktor Andriiovych Yushchenko (, ; born 23 February 1954) is a Ukrainian politician who was the third president of Ukraine from 23 January 2005 to 25 February 2010. He aimed to orient Ukraine towards Western world, the West, European Union, and N ...
, a pro-Western liberal economist. He congratulated Yanukovych, followed shortly afterwards by Belarusian president
Alexander Lukashenko Alexander Grigoryevich Lukashenko (also transliterated as Alyaksandr Ryhoravich Lukashenka; born 30 August 1954) is a Belarusian politician who has been the first and only president of Belarus since the office's establishment in 1994, making hi ...
, on his victory before election results were even made official and made statements opposing the rerun of the disputed second round of elections, won by Yanukovych, amid allegations of large-scale voting fraud. The second round was ultimately rerun; Yushchenko won the round and was eventually declared the winner on 10 January 2005. In the West, the reaction to Russia's handling of, or perhaps interference in, the Ukrainian election evoked echoes of the
Cold War The Cold War was a period of global Geopolitics, geopolitical rivalry between the United States (US) and the Soviet Union (USSR) and their respective allies, the capitalist Western Bloc and communist Eastern Bloc, which lasted from 1947 unt ...
, but relations with the U.S. remained stable. On 14 March 2004, Putin was elected to the presidency for a second term, receiving 71% of the vote. The Beslan school hostage crisis took place in September 2004, in which hundreds died. Many in the Russian press and in the international media warned that the death of 130 hostages in the special forces' rescue operation during the 2002
Moscow theater hostage crisis The Moscow theater hostage crisis, also known as the 2002 Nord-Ost siege, was the seizure of the crowded Dubrovka Theater in Moscow by Chechen terrorists on 23 October 2002, resulting in the taking of 912 hostages. The attackers, led by Movs ...
would severely damage President Putin's popularity. However, shortly after the siege had ended, the Russian president enjoyed record public approval ratings – 83% of Russians declared themselves satisfied with Putin and his handling of the siege. In 2005, the Russian government replaced the broad in-kind Soviet-era benefits, such as free transportation and subsidies for heating and other utilities for socially vulnerable groups by cash payments. The reform, known as
monetization Monetization ( also spelled monetisation in the UK) is, broadly speaking, the process of converting something into money. The term has a broad range of uses. In banking, the term refers to the process of converting or establishing something into ...
, has been unpopular and caused a wave of demonstrations in various Russian cities, with thousands of retirees protesting against the loss of their benefits. This was the first time such wave of protests took place during the Putin administration. The reform hurt the popularity of the Russian government, but Putin personally remained popular, with a 77% approval rating. The near 10-year period prior to the rise of Putin after the dissolution of Soviet rule was a time of upheaval in Russia. In a 2005
Kremlin The Moscow Kremlin (also the Kremlin) is a fortified complex in Moscow, Russia. Located in the centre of the country's capital city, the Moscow Kremlin (fortification), Kremlin comprises five palaces, four cathedrals, and the enclosing Mosco ...
speech, Putin characterized the collapse of the
Soviet Union The Union of Soviet Socialist Republics. (USSR), commonly known as the Soviet Union, was a List of former transcontinental countries#Since 1700, transcontinental country that spanned much of Eurasia from 1922 until Dissolution of the Soviet ...
as the "greatest geopolitical catastrophe of the Twentieth Century." Putin elaborated: "Moreover, the epidemic of disintegration infected Russia itself." The country's cradle-to-grave
social safety net A social safety net (SSN) consists of non-contributory assistance existing to improve lives of vulnerable families and individuals experiencing poverty and destitution. Examples of SSNs are previously-contributory social pensions, in-kind and foo ...
was gone and life expectancy declined in the period preceding Putin's rule. In 2005, the
National Priority Projects The National Priority Projects of Russia () was a program of the Russian government set out by Russian President Vladimir Putin in his speech on 5 September 2005. The program was aimed to develop social welfare in Russia by additional funding ...
were launched to improve Russia's
health care Health care, or healthcare, is the improvement or maintenance of health via the preventive healthcare, prevention, diagnosis, therapy, treatment, wikt:amelioration, amelioration or cure of disease, illness, injury, and other disability, physic ...
,
education Education is the transmission of knowledge and skills and the development of character traits. Formal education occurs within a structured institutional framework, such as public schools, following a curriculum. Non-formal education als ...
,
housing Housing refers to a property containing one or more Shelter (building), shelter as a living space. Housing spaces are inhabited either by individuals or a collective group of people. Housing is also referred to as a human need and right to ...
and
agriculture Agriculture encompasses crop and livestock production, aquaculture, and forestry for food and non-food products. Agriculture was a key factor in the rise of sedentary human civilization, whereby farming of domesticated species created ...
. The continued criminal prosecution of Russia's then richest man, President of
Yukos OJSC "Yukos Oil Company" (, ) was an oil and gas company based in Moscow, Russia. Yukos was acquired from the Russian government by Russian oligarch Mikhail Khodorkovsky's Bank Menatep during the controversial "loans for shares" auctions of ...
oil and gas company
Mikhail Khodorkovsky Mikhail Borisovich Khodorkovsky (, ; born 26 June 1963), sometimes known by his initials MBK, is an exiled Russian businessman, Russian oligarchs, oligarch, and Russian opposition, opposition activist, now residing in London. In 2003, Khodork ...
, for fraud and
tax evasion Tax evasion or tax fraud is an illegal attempt to defeat the imposition of taxes by individuals, corporations, trusts, and others. Tax evasion often entails the deliberate misrepresentation of the taxpayer's affairs to the tax authorities to red ...
was seen by the international press as a retaliation for Khodorkovsky's donations to both liberal and communist opponents of the Kremlin. The government said that Khodorkovsky was "corrupting" a large segment of the Duma to prevent changes to the tax code. Khodorkovsky was arrested, Yukos was bankrupted and the company's assets were auctioned at below-market value, with the largest share acquired by the state company
Rosneft PJSC Rosneft Oil Company ( stylized as ROSNEFT) is a Russian integrated energy company headquartered in Moscow. Rosneft specializes in the exploration, extraction, production, refining, transport, and sale of petroleum, natural gas, and pet ...
. The fate of Yukos was seen as a sign of a broader shift of Russia towards a system of
state capitalism State capitalism is an economic system in which the state undertakes business and commercial economic activity and where the means of production are nationalized as state-owned enterprises (including the processes of capital accumulation, ...
. This was underscored in July 2014 when shareholders of Yukos were awarded $50 billion in compensation by the Permanent Arbitration Court in
The Hague The Hague ( ) is the capital city of the South Holland province of the Netherlands. With a population of over half a million, it is the third-largest city in the Netherlands. Situated on the west coast facing the North Sea, The Hague is the c ...
. On 7 October 2006,
Anna Politkovskaya Anna Stepanovna Politkovskaya (; 30 August 1958 – 7 October 2006) was a Russians, Russian investigative journalist who reported on political and social events in Russia, in particular, the Second Chechen War (1999–2005). It was her repor ...
, a journalist who exposed corruption in the
Russian army The Russian Ground Forces (), also known as the Russian Army in English, are the Army, land forces of the Russian Armed Forces. The primary responsibilities of the Russian Ground Forces are the protection of the state borders, combat on land, ...
and its conduct in
Chechnya Chechnya, officially the Chechen Republic, is a Republics of Russia, republic of Russia. It is situated in the North Caucasus of Eastern Europe, between the Caspian Sea and Black Sea. The republic forms a part of the North Caucasian Federa ...
, was shot in the lobby of her apartment building, on Putin's birthday. The death of Politkovskaya triggered international criticism, with accusations that Putin has failed to protect the country's new independent media. Putin himself said that her death caused the government more problems than her writings. In 2007, " Dissenters' Marches" were organized by the opposition group The Other Russia, led by former chess champion
Garry Kasparov Garry Kimovich Kasparov (born Garik Kimovich Weinstein on 13 April 1963) is a Russian Grandmaster (chess), chess grandmaster, former World Chess Champion (1985–2000), political activist and writer. His peak FIDE chess Elo rating system, ra ...
and national-Bolshevist leader
Eduard Limonov Eduard Veniaminovich Limonov (né Savenko; , ; 22 February 1943 – 17 March 2020) was a Russians, Russian writer, poet, publicist, political dissident and politician. He emigrated from the Soviet Union in 1974, but returned to Russia in 1991 ...
. Following prior warnings, demonstrations in several Russian cities were met by police action, which included interfering with the travel of the protesters and the arrests of as many as 150 people who attempted to break through police lines. On 12 September 2007, Putin dissolved the government upon the request of Prime Minister
Mikhail Fradkov Mikhail Yefimovich Fradkov ( rus, Михаи́л Ефи́мович Фрадко́в, p=mʲɪxɐˈil jɪˈfʲiməvʲɪtɕ frɐtˈkof; born 1 September 1950) is a Russian politician who served as Prime Minister of Russia from 2004 to 2007. An Ind ...
. Fradkov commented that it was to give the President a "free hand" in the run-up to the parliamentary election.
Viktor Zubkov Viktor Alekseyevich Zubkov ( rus, Ви́ктор Алексе́евич Зубко́в, p=ˈvʲiktər ɐlʲɪkˈsʲejɪvʲɪdʑ zʊpˈkof; born 15 September 1941) is a Russian civil servant, politician and businessman who served as the List of h ...
was appointed the new prime minister. In the December 2007 election,
United Russia The All-Russian Political Party United Russia (, ) is the Ruling party, ruling List of political parties in Russia, political party of Russia. As the largest party in the Russian Federation, it holds 325 (or 72.22%) of the 450 seats in the St ...
won 64.30% of the popular vote in their run for
State Duma The State Duma is the lower house of the Federal Assembly (Russia), Federal Assembly of Russia, with the upper house being the Federation Council (Russia), Federation Council. It was established by the Constitution of Russia, Constitution of t ...
. This victory was seen by many as an indication of strong popular support of the then Russian leadership and its policies. At the end of Putin's second term, Jonathan Steele has commented on Putin's legacy: "What, then, is Putin's legacy? Stability and growth, for starters. After the chaos of the 90s, highlighted by Yeltsin's attack on the Russian parliament with tanks in 1993 and the collapse of almost every bank in 1998, Putin has delivered political calm and a 7% annual rate of growth. Inequalities have increased and many of the new rich are grotesquely crass and cruel, but not all the Kremlin's vast revenues from oil and gas have gone into private pockets or are being hoarded in the government's "stabilisation fund". Enough has gone into modernising schools and hospitals so that people notice a difference. Overall living standards are up. The second Chechen war, the major blight on Putin's record, is almost over". Putin was barred from a third term by the
Constitution of Russia The Constitution of the Russian Federation () was adopted by national referendum on 12 December 1993 and enacted on 25 December 1993. The latest significant reform occurred in 2020, marked by extensive amendments that altered various sections ...
. First Deputy Prime Minister
Dmitry Medvedev Dmitry Anatolyevich Medvedev (born 14 September 1965) is a Russian politician and lawyer who has served as Deputy Chairman of the Security Council of Russia since 2020. Medvedev was also President of Russia between 2008 and 2012 and Prime Mini ...
was elected his successor. In a power-switching operation on 8 May 2008, only a day after handing the presidency to Medvedev, Putin was appointed
Prime Minister of Russia The prime minister of the Russian Federation, also domestically stylized as the chairman of the government of the Russian Federation and widely recognized as the prime minister, is the head of government of Russia and the second highest ranking ...
, maintaining his political dominance. In 2008, Kosovo's declaration of independence saw a marked deterioration in Russia's relationship with the West. It also saw South Ossetia war against
Georgia Georgia most commonly refers to: * Georgia (country), a country in the South Caucasus * Georgia (U.S. state), a state in the southeastern United States Georgia may also refer to: People and fictional characters * Georgia (name), a list of pe ...
, that followed Georgia's attempt to take over the breakaway region of
South Ossetia South Ossetia, officially the Republic of South Ossetia or the State of Alania, is a landlocked country in the South Caucasus with International recognition of Abkhazia and South Ossetia, partial diplomatic recognition. It has an offici ...
. Russian troops entered South Ossetia and forced Georgian troops back, establishing their control on this territory. In the fall of 2008, Russia unilaterally recognized the independence of South Ossetia and
Abkhazia Abkhazia, officially the Republic of Abkhazia, is a List of states with limited recognition, partially recognised state in the South Caucasus, on the eastern coast of the Black Sea, at the intersection of Eastern Europe and West Asia. It cover ...
. Putin has said that overcoming the consequences of the world economic crisis was one of the two main achievements of his second Premiership. The other was the stabilizing the size of Russia's population between 2008 and 2011 following a long period of demographic collapse that began in the 1990s. At the
United Russia The All-Russian Political Party United Russia (, ) is the Ruling party, ruling List of political parties in Russia, political party of Russia. As the largest party in the Russian Federation, it holds 325 (or 72.22%) of the 450 seats in the St ...
Congress in Moscow on 24 September 2011, Medvedev officially proposed that Putin stand for the Presidency in March 2012, an offer Putin accepted. Given United Russia's near-total dominance of Russian politics, many observers believed that Putin was assured of a third term. The move was expected to see Medvedev stand on the United Russia ticket in the parliamentary elections in December, with a goal of becoming Prime Minister at the end of his presidential term. After the
parliamentary elections A general election is an electoral process to choose most or all members of a governing body at the same time. They are distinct from by-elections, which fill individual seats that have become vacant between general elections. General elections ...
on 4 December 2011, tens of thousands of Russians engaged in protests against alleged electoral fraud, the largest protests in Putin's time. Protesters criticized Putin and United Russia and demanded annulment of the election results.''Russian election protests – follow live updates''
''The Guardian''. Retrieved 10 December 2011
Those protests sparked the fear of a colour revolution in society. Putin allegedly organized a number of paramilitary groups loyal to himself and to the United Russia party in the period between 2005 and 2012. On 4 March 2012, Putin won the 2012 Russian presidential elections in the first round, with 63.6% of the vote, despite widespread accusations of vote-rigging. Opposition groups accused Putin and the
United Russia The All-Russian Political Party United Russia (, ) is the Ruling party, ruling List of political parties in Russia, political party of Russia. As the largest party in the Russian Federation, it holds 325 (or 72.22%) of the 450 seats in the St ...
party of fraud. While efforts to make the elections transparent were publicized, including the usage of
webcam A webcam is a video camera which is designed to record or stream to a computer or computer network. They are primarily used in Videotelephony, video telephony, live streaming and social media, and Closed-circuit television, security. Webcams can b ...
s in polling stations, the vote was criticized by the Russian opposition and by international observers from the
Organization for Security and Co-operation in Europe The Organization for Security and Co-operation in Europe (OSCE) is a regional security-oriented intergovernmental organization comprising member states in Europe, North America, and Asia. Its mandate includes issues such as arms control, the p ...
for procedural irregularities. Anti-Putin protests took place during and directly after the presidential campaign. The most notorious protest was the
Pussy Riot Pussy Riot is a Feminism in Russia, Russian feminist protest and performance art group based in Moscow that became popular for its provocative punk rock music which later turned into a more accessible style. Founded in the fall of 2011 by the th ...
performance on 21 February, and subsequent trial. An estimated 8,000–20,000 protesters gathered in Moscow on 6 May,Провокация вместо марша
vz.ru
when eighty people were injured in confrontations with police, and 450 were arrested, with another 120 arrests taking place the following day. In 2012 and 2013, Putin and the United Russia party backed stricter legislation against the
LGBT LGBTQ people are individuals who are lesbian, gay, bisexual, transgender, queer, or questioning. Many variants of the initialism are used; LGBTQIA+ people incorporates intersex, asexual, aromantic, agender, and other individuals. The gro ...
community, in
Saint Petersburg Saint Petersburg, formerly known as Petrograd and later Leningrad, is the List of cities and towns in Russia by population, second-largest city in Russia after Moscow. It is situated on the Neva, River Neva, at the head of the Gulf of Finland ...
,
Archangelsk Arkhangelsk (, ) is a city and the administrative center of Arkhangelsk Oblast, Russia. It lies on both banks of the Northern Dvina near its mouth into the White Sea. The city spreads for over along the banks of the river and numerous islands o ...
and
Novosibirsk Novosibirsk is the largest city and administrative centre of Novosibirsk Oblast and the Siberian Federal District in Russia. As of the 2021 Russian census, 2021 census, it had a population of 1,633,595, making it the most populous city in Siber ...
; a law called the
Russian gay propaganda law For the Purpose of Protecting Children from Information Advocating a Denial of Traditional Family Values, commonly known as the Russian anti-LGBT law or as the Russian anti-gay law, is a law of Russia. It was Unanimity, unanimously passed by the ...
, that is against "homosexual propaganda" (which prohibits such symbols as the rainbow flag as well as published works containing homosexual content) was adopted by the
State Duma The State Duma is the lower house of the Federal Assembly (Russia), Federal Assembly of Russia, with the upper house being the Federation Council (Russia), Federation Council. It was established by the Constitution of Russia, Constitution of t ...
in June 2013. Responding to international concerns about Russia's legislation, Putin asked critics to note that the law was a "ban on the propaganda of pedophilia and homosexuality" and he stated that homosexual visitors to the
2014 Winter Olympics The 2014 Winter Olympics, officially called the XXII Olympic Winter Games () and commonly known as Sochi 2014 (), were an international winter multi-sport event that was held from 7 to 23 February 2014 in Sochi, Russia. Opening ro ...
should "leave the children in peace" but denied there was any "professional, career or social discrimination" against homosexuals in Russia.


Russo-Ukrainian War

On 22 February 2014, the Yanukovych government of Ukraine collapsed as a result of the
Revolution of Dignity The Revolution of Dignity (), also known as the Maidan Revolution or the Ukrainian Revolution, took place in Ukraine in February 2014 at the end of the Euromaidan protests, when deadly clashes between protesters and state forces in the capit ...
, which the Russian government called a foreign backed proxy movement. On the same day, according to Russian president
Vladimir Putin Vladimir Vladimirovich Putin (born 7 October 1952) is a Russian politician and former intelligence officer who has served as President of Russia since 2012, having previously served from 2000 to 2008. Putin also served as Prime Minister of Ru ...
, he called an all-night meeting of his military leaders, at the end of which he ordered them to "begin the work to bring Crimea back into Russia." By 27 February, unmarked Russian troops in Ukraine were establishing a blockade of the borders and Ukrainian military bases in the
Autonomous Republic of Crimea The Autonomous Republic of Crimea is a ''de jure'' administrative division of Ukraine encompassing most of Crimea that was unilaterally annexed by Russia in 2014. The Autonomous Republic of Crimea occupies most of the peninsula,Viktor Yanukovych Viktor Fedorovych Yanukovych (born 9 July 1950) is a Ukrainian politician who served as the fourth president of Ukraine from 2010 to 2014. He also served as the prime minister of Ukraine several times between 2002 and 2007 and was a member of t ...
requested that Russia use military forces "to establish legitimacy, peace, law and order, stability and defending the people of Ukraine". On the same day, Vladimir Putin requested and received authorization from the Russian Parliament to deploy Russian troops to Ukraine in response to the crisis and gained complete control over Crimean Peninsula within a day. On 6 March 2014, the Crimean Parliament voted to "enter into the Russian Federation with the rights of a subject of the Russian Federation" and later held a
referendum A referendum, plebiscite, or ballot measure is a Direct democracy, direct vote by the Constituency, electorate (rather than their Representative democracy, representatives) on a proposal, law, or political issue. A referendum may be either bin ...
asking the people of these regions whether they wanted to join Russia as a
federal subject The federal subjects of Russia, also referred to as the subjects of the Russian Federation () or simply as the subjects of the federation (), are the administrative division, constituent entities of Russia, its top-level political division ...
, or if they wanted to restore the 1992 Crimean constitution and Crimea's status as a part of
Ukraine Ukraine is a country in Eastern Europe. It is the List of European countries by area, second-largest country in Europe after Russia, which Russia–Ukraine border, borders it to the east and northeast. Ukraine also borders Belarus to the nor ...
. Though passed with an overwhelming majority, the results are contested by some and approved by others. Crimea and
Sevastopol Sevastopol ( ), sometimes written Sebastopol, is the largest city in Crimea and a major port on the Black Sea. Due to its strategic location and the navigability of the city's harbours, Sevastopol has been an important port and naval base th ...
formally declared independence as the Republic of Crimea and requested that they be admitted as constituents of the Russian Federation. On 18 March 2014, Russia and Crimea signed a treaty of accession of the Republic of Crimea and Sevastopol in the Russian Federation, while the
United Nations General Assembly The United Nations General Assembly (UNGA or GA; , AGNU or AG) is one of the six principal organs of the United Nations (UN), serving as its main deliberative, policymaking, and representative organ. Currently in its Seventy-ninth session of th ...
voted in favor of a non-binding Resolution 68/262 to oppose Russia's annexation of the peninsula. On 24 February 2022, Russia launched a full-scale invasion of Ukraine, although it was described as a "special military operation" by Putin. The invasion led to international condemnation followed by political, economic and cultural sanctions. The invasion also sparked protests around the world as well as within Russia. On 21 September 2022, Vladimir Putin announced a partial mobilization. He also said that his country will use "all means" to "defend itself". Later that day, the
minister of defence A ministry of defence or defense (see spelling differences), also known as a department of defence or defense, is the part of a government responsible for matters of defence and military forces, found in states where the government is divid ...
Sergei Shoigu stated that 300,000 reservists would be called on a compulsory basis. Following president Putin's announcement of partial mobilization, massive Russian emigration began, with estimates of hundreds of thousands of male citizens fleeing, many going to
Kazakhstan Kazakhstan, officially the Republic of Kazakhstan, is a landlocked country primarily in Central Asia, with a European Kazakhstan, small portion in Eastern Europe. It borders Russia to the Kazakhstan–Russia border, north and west, China to th ...
,
Serbia , image_flag = Flag of Serbia.svg , national_motto = , image_coat = Coat of arms of Serbia.svg , national_anthem = () , image_map = , map_caption = Location of Serbia (gree ...
,
Georgia Georgia most commonly refers to: * Georgia (country), a country in the South Caucasus * Georgia (U.S. state), a state in the southeastern United States Georgia may also refer to: People and fictional characters * Georgia (name), a list of pe ...
and
Finland Finland, officially the Republic of Finland, is a Nordic country in Northern Europe. It borders Sweden to the northwest, Norway to the north, and Russia to the east, with the Gulf of Bothnia to the west and the Gulf of Finland to the south, ...
. In late September 2022, Russian-installed officials in Ukraine organized 2022 annexation referendums in Russian-occupied Ukraine, referendums on annexation of occupied territories of Ukraine, including the Donetsk People's Republic and the Luhansk People's Republic in Russian occupied Donetsk and Luhansk oblasts of Ukraine, as well as the Russian-appointed military administrations of Kherson Oblast and Zaporizhzhia Oblast. Denounced by Ukraine's government and its allies as Sham election, sham, the official results showed overwhelming majorities in favor of annexation. On 2022, Russia's president
Vladimir Putin Vladimir Vladimirovich Putin (born 7 October 1952) is a Russian politician and former intelligence officer who has served as President of Russia since 2012, having previously served from 2000 to 2008. Putin also served as Prime Minister of Ru ...
announced the annexation of Donetsk, Kherson, Luhansk and Zaporizhzhia oblasts of Ukraine in an address to both houses of the
Russian parliament The Federal Assembly is the bicameral national legislature of Russia. The upper house is the Federation Council (Russia), Federation Council, and the lower house is the State Duma. The assembly was established by the Constitution of the Russian F ...
. The United Nations, Ukraine, and many other countries condemned the annexation. On 23 June 2023, the private military company
Wagner Group The Wagner Group (), officially known as PMC Wagner (, ), is a Russian state-funded private military company (PMC) controlled 2023 Wagner Group plane crash, until 2023 by Yevgeny Prigozhin, a former close ally of Russia's president Vladimir Pu ...
, which had been assisting Russia in its invasion of Ukraine, declared a rebellion against the Russian military. Several cities along the M-4 Highway, including Rostov and Vorenhzh, were seized by Wagner forces, as they began to march towards Moscow. The following day, Wagner forces stepped down and the rebellion ended.


Relations with the West

In the early period after Russia became independent, Russian foreign policy repudiated Marxism–Leninism as a putative guide to action, emphasizing cooperation with the West in solving regional and global problems, and soliciting economic and humanitarian aid from the West in support of internal economic reforms. However, although Russia's leaders now described the West as its natural ally, they grappled with defining new relations with the East European states, the new states formed upon the disintegration of
Yugoslavia , common_name = Yugoslavia , life_span = 1918–19921941–1945: World War II in Yugoslavia#Axis invasion and dismemberment of Yugoslavia, Axis occupation , p1 = Kingdom of SerbiaSerbia , flag_p ...
, and Eastern Europe. Russia opposed the expansion of
NATO The North Atlantic Treaty Organization (NATO ; , OTAN), also called the North Atlantic Alliance, is an intergovernmental organization, intergovernmental Transnationalism, transnational military alliance of 32 Member states of NATO, member s ...
into the former Soviet bloc nations of the Czech Republic, Poland, and Hungary in 1997 and, particularly, the second NATO expansion into Bulgaria, Estonia, Latvia, Lithuania, Romania, Slovakia and Slovenia in 2004. In 1999, Russia opposed the
NATO bombing of Yugoslavia The North Atlantic Treaty Organization (NATO) carried out an aerial bombing campaign against the Serbia and Montenegro, Federal Republic of Yugoslavia during the Kosovo War. The air strikes lasted from 24 March 1999 to 10 June 1999. The bombing ...
for more than two months (''see''
Kosovo War The Kosovo War (; sr-Cyrl-Latn, Косовски рат, Kosovski rat) was an armed conflict in Kosovo that lasted from 28 February 1998 until 11 June 1999. It ...
), but later joined NATO peace-keeping forces in the Balkans in June 1999. Relations with the West have also been strained by Russia's relationship with
Belarus Belarus, officially the Republic of Belarus, is a landlocked country in Eastern Europe. It is bordered by Russia to the east and northeast, Ukraine to the south, Poland to the west, and Lithuania and Latvia to the northwest. Belarus spans an a ...
. Belarusian President
Alexander Lukashenko Alexander Grigoryevich Lukashenko (also transliterated as Alyaksandr Ryhoravich Lukashenka; born 30 August 1954) is a Belarusian politician who has been the first and only president of Belarus since the office's establishment in 1994, making hi ...
, an
authoritarian Authoritarianism is a political system characterized by the rejection of political plurality, the use of strong central power to preserve the political ''status quo'', and reductions in democracy, separation of powers, civil liberties, and ...
leader, has shown no interest in implementing Western-backed economic and political reforms and has aligned his country with Russia, and has no interest in deepening ties with NATO. A union agreement between Russia and Belarus was formed on 2 April 1996. The agreement was tightened, becoming the Union of Russia and Belarus on 3 April 1997. Further strengthening of the union occurred on 25 December 1998, and in 1999. Under Putin, Russia has sought to strengthen ties with the
People's Republic of China China, officially the People's Republic of China (PRC), is a country in East Asia. With population of China, a population exceeding 1.4 billion, it is the list of countries by population (United Nations), second-most populous country after ...
by signing the Treaty of Good-Neighborliness and Friendly Cooperation as well building the Trans-Siberian oil pipeline geared toward growing Chinese energy needs. He also made a number of appearances in the media with
President of the United States The president of the United States (POTUS) is the head of state and head of government of the United States. The president directs the Federal government of the United States#Executive branch, executive branch of the Federal government of t ...
George W. Bush George Walker Bush (born July 6, 1946) is an American politician and businessman who was the 43rd president of the United States from 2001 to 2009. A member of the Bush family and the Republican Party (United States), Republican Party, he i ...
in which the two described each other as "friends".


See also

*
Economic history of the Russian Federation After the dissolution of the Soviet Union in 1991 and the end of its centrally-planned economy, the Russian Federation succeeded it under president Boris Yeltsin. The Russian government used policies of Shock therapy (economics), shock therapy ...
* Military history of the Russian Federation *
Politics of Russia The politics of Russia take place in the framework of the federation, federal semi-presidential republic, semi-presidential republic of Russia. According to the Constitution of Russia, the President of Russia is head of state, and of a multi ...
* Timeline of largest projects in the Russian economy *
Human rights in Russia Russia has consistently been criticized by international organizations and independent domestic media outlets for human rights violations. Some of the most commonly cited violations include deaths in custody, the systemic and widespread use of ...


Notes


References


Further reading

* Rosefielde, Steven. ''Putin's Russia: Economy, Defence and Foreign Policy'' (2020
excerpt


External links


Charles H. Fairbanks, Jr., "What Went Wrong in Russia?: The Feudalization of the State," ''Journal of Democracy'' (April 1999), p. 47–53.
(an analysis of the state of democratic transition in Russia by Charles H. Fairbanks, Jr., a leading specialist in Russian politics published in the ''
Journal of Democracy The ''Journal of Democracy'' is a quarterly academic journal established in 1990 and an official publication of the National Endowment for Democracy's International Forum for Democratic Studies. It covers the study of democracy, democratic regi ...
'')
Post-Soviet Russia and Its Neighbors
from th
Dean Peter Krogh Foreign Affairs Digital Archives
(Paul J. Saunders is a specialist in U.S.-Russian relations and executive director of the Center for the National Interest)
Up for Debate: Shock Therapy: Bolivia, Poland, Russia. Same Policies-Different Results
From the
PBS The Public Broadcasting Service (PBS) is an American public broadcaster and non-commercial, free-to-air television network based in Arlington, Virginia. PBS is a publicly funded nonprofit organization and the most prominent provider of educat ...
series "Commanding Heights"
Up for Debate: Privatization: Who Wins? Russia's Reform Compromise
(interviews with Yegor Gaidar, Grigory Yavlinsky,
Anatoly Chubais Anatoly Borisovich Chubais (; born 16 June 1955) is a Russian- Israeli politician and economist who was responsible for privatization in Russia as an influential member of Boris Yeltsin's administration in the early 1990s. During this period, ...
,
Joseph Stiglitz Joseph Eugene Stiglitz (; born February 9, 1943) is an American New Keynesian economist, a public policy analyst, political activist, and a professor at Columbia University. He is a recipient of the Nobel Memorial Prize in Economic Sciences (2 ...
, and
Jeffrey Sachs Jeffrey David Sachs ( ; born November 5, 1954) is an American economist and public policy analyst who is a professor at Columbia University, where he was formerly director of The Earth Institute. He worked on the topics of sustainable develop ...
from the PBS series "Commanding Heights") *Nick Paton Walsh, ''
The Guardian ''The Guardian'' is a British daily newspaper. It was founded in Manchester in 1821 as ''The Manchester Guardian'' and changed its name in 1959, followed by a move to London. Along with its sister paper, ''The Guardian Weekly'', ''The Guardi ...
'', 6 July 2005
"Meet the chief exec of Kremlin inc ..."
*
Failed Expectations, Or What Is Behind the Marshall Plan for Post-Socialist Reconstruction
', by Tanya Narozhna
"The Uncertain Return of Russian Power"
by Mike Haynes, analyses Putin's Russia and looks at claims that the reassertion of Russian power is leading to a new Cold War. *Mike Edwards: "Russia — Playing by new rules" ''
National Geographic Magazine ''National Geographic'' (formerly ''The National Geographic Magazine'', sometimes branded as ''Nat Geo'') is an American monthly magazine published by National Geographic Partners. The magazine was founded in 1888 as a scholarly journal, nine ...
'' March 1993 Mark Hollingsworth & Stewart Lansley, Londongrad: From Russia With Cash, 2009, 4th Estate {{DEFAULTSORT:History Of Post-Soviet Russia *1991
1991 It was the final year of the Cold War, which had begun in 1947. During the year, the Soviet Union Dissolution of the Soviet Union, collapsed, leaving Post-soviet states, fifteen sovereign republics and the Commonwealth of Independent State ...
1991 It was the final year of the Cold War, which had begun in 1947. During the year, the Soviet Union Dissolution of the Soviet Union, collapsed, leaving Post-soviet states, fifteen sovereign republics and the Commonwealth of Independent State ...
Russia Russia, or the Russian Federation, is a country spanning Eastern Europe and North Asia. It is the list of countries and dependencies by area, largest country in the world, and extends across Time in Russia, eleven time zones, sharing Borders ...