Russian Federation

Russia has a developed, high-income market economy with enormous natural resources, particularly oil and natural gas. It has the 15th largest economy in the world by nominal GDP and the 6th largest by purchasing power parity (PPP). Since the turn of the 21st century, higher domestic consumption and greater political stability have bolstered economic growth in Russia. The country ended 2008 with its ninth straight year of growth, but growth has slowed with the decline in the price of oil and gas. Real GDP per capita, PPP (current international) was 19,840 in 2010. Growth was primarily driven by non-traded services and goods for the domestic market, as opposed to oil or mineral extraction and exports. The average nominal salary in Russia was $967 per month in early 2013, up from $80 in 2000. In March 2014 the average nominal monthly wages reached 30,000 RUR (or US$980), while tax on the income of individuals is payable at the rate of 13% on most incomes. Approximately 12.8% of Russians lived below the national poverty line in 2011, significantly down from 40% in 1998 at the worst point of the post-Soviet collapse. Unemployment in Russia was 5.4% in 2014, down from about 12.4% in 1999. The middle class has grown from just 8 million persons in 2000 to 104 million persons in 2013. However, after United States-led sanctions since 2014 and a collapse in oil prices, the proportion of middle-class could halve to 20%. Sugar imports reportedly dropped 82% between 2012 and 2013 as a result of the increase in domestic output. Russian economy since the end of the Soviet Union

Oil, natural gas, metals, and timber account for more than 80% of Russian exports abroad. Since 2003, the exports of natural resources started decreasing in economic importance as the internal market strengthened considerably. Despite higher energy prices, oil and gas only contribute to 5.7% of Russia's GDP and the government predicts this will be 3.7% by 2011. Oil export earnings allowed Russia to increase its foreign reserves from $12 billion in 1999 to $597.3 billion on August 1, 2008, the third largest foreign exchange reserves in the world. The macroeconomic policy under Finance Minister Alexei Kudrin was prudent and sound, with excess income being stored in the Stabilization Fund of Russia. In 2006, Russia repaid most of its formerly massive debts, leaving it with one of the lowest foreign debts among major economies. The Stabilization Fund helped Russia to come out of the global financial crisis in a much better state than many experts had expected.

A simpler, more streamlined tax code adopted in 2001 reduced the tax burden on people and dramatically increased state revenue. Russia has a flat tax rate of 13%. This ranks it as the country with the second most attractive personal tax system for single managers in the world after the United Arab Emirates. According to Bloomberg, Russia is considered well ahead of most other resource-rich countries in its economic development, with a long tradition of education, science, and industry. The country has a higher proportion of higher education graduates than any other country in Eurasia.On May 21, 2014, Russia and China signed a $400 billion gas deal. Starting 2019 Russia plans to provide natural gas to China for the next 30 years.

The economic development of the country has been uneven geographically with the Moscow region contributing a very large share of the country's GDP. Inequality of household income and wealth has also been noted, with Credit Suisse finding Russian wealth distribution so much more extreme than other countries studied it "deserves to be placed in a separate category." Another problem is modernisation of infrastructure, ageing and inadequate after years of being neglected in the 1990s; the government has said $1 trillion will be invested in development of infrastructure by 2020. In December 2011, Russia finally joined the World Trade Organisation, allowing it a greater access to overseas markets. Some analysts estimate that WTO membership could bring the Russian economy a bounce of up to 3% annually. Russia ranks as the second-most corrupt country in Europe (after Ukraine), according to the Corruption Perceptions Index. The Norwegian-Russian Chamber of Commerce also states that "corruption is one of the biggest problems both Russian and international companies have to deal with". The high rate of corruption acts as a hidden tax as businesses and individuals often have to pay money that is not part of the official tax rate. It is estimated that corruption is costing the Russian economy an estimated $2 billion (80 billion rubles) per year. In 2014, a book-length study by Professor Karen Dawisha was published concerning corruption in Russian under Putin's government.

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