Everything about Russian Federation totally explained
Russia (
Rossiya), also the
Russian Federation (
Rossiyskaya Federatsiya), is a
transcontinental country extending over much of northern
Eurasia. It is a
semi-presidential republic comprising 83
federal subjects. Russia shares
land borders with the following countries (counter-clockwise from northwest to southeast):
Norway,
Finland,
Estonia,
Latvia,
Lithuania (
Kaliningrad Oblast),
Poland (Kaliningrad Oblast),
Belarus,
Ukraine,
Georgia,
Azerbaijan,
Kazakhstan,
China,
Mongolia and
North Korea. It is also close to the
U.S. state of Alaska,
Sweden,
Denmark,
Turkey and
Japan across relatively small stretches of water (the
Bering Strait, the
Baltic Sea, the
Black Sea and
La Pérouse Strait, respectively).
At, Russia is by far the
largest country in the world, covering more than an eighth of the Earth’s land area; with 142 million people, it's the
ninth largest by population. It extends across the whole of northern Asia and 40% of
Europe, spanning 11 time zones and incorporating a great range of environments and landforms. Russia has the world's largest mineral and energy resources, and is considered an
energy superpower. It has the world's largest forest reserves and its lakes contain approximately one-quarter of the world's unfrozen fresh water. Founded and ruled by
Vikings and their descendants, the first East Slavic state,
Kievan Rus', arose in the 9th century and adopted
Christianity from the
Byzantine Empire in 988, Kievan Rus' ultimately disintegrated and the lands were divided into many small feudal Russian states. The most powerful successor state to Kievan Rus' was
Moscow, which served as the main force in the Russian reunification process and independence struggle against the
Golden Horde. Moscow gradually reunified the surrounding Russian principalities and came to dominate the cultural and political legacy of Kievan Rus'. By the 18th century, the nation had greatly expanded through conquest, annexation and exploration to become the huge
Russian Empire, stretching from Poland eastward to the
Pacific Ocean.
Russia established worldwide power and influence from the times of the
Russian Empire to being the largest and leading constituent of the
Soviet Union, the world's first and largest
constitutionally socialist state and a recognized
superpower. The nation can boast a long tradition of excellence in every aspect of the arts and sciences. From north to south the
East European Plain is clad sequentially in
tundra, coniferous forest (
taiga), mixed and broad-leaf forests, grassland (
steppe), and semi-desert (fringing the
Caspian Sea) as the changes in vegetation reflect the changes in climate.
Siberia supports a similar sequence but is taiga. The country contains 23
World Heritage Sites and 40 UNESCO
Biosphere reserves.
Topography
The two widest separated points in Russia are about 8,000 km (5,000 mi) apart along a
geodesic line. These points are: the boundary with Poland on a 60 km long (40-mi long)
spit of land separating the
Gulf of Gdańsk from the
Vistula Lagoon; and the farthest southeast of the
Kuril Islands, a few miles off
Hokkaidō Island, Japan. The points which are furthest separated in longitude are 6,600 km (4,100 mi) apart along a geodesic. These points are: in the West, the same spit; in the East, the
Big Diomede Island (Ostrov Ratmanova). The Russian Federation spans 11
time zones.
Russia has the world's largest forest reserves and is known as "the lungs of Europe," second only to the
Amazon Rainforest in the amount of carbon dioxide it absorbs. It provides a huge amount of oxygen for not just Europe, but the world. With access to three of the world's oceans—the Atlantic, Arctic, and Pacific—Russian fishing fleets are a major contributor to the world's fish supply. The Caspian is the source of what is considered the finest
caviar in the world.
Most of Russia consists of vast stretches of plains that are predominantly
steppe to the south and heavily forested to the north, with
tundra along the northern coast. Mountain ranges are found along the southern borders, such as the
Caucasus (containing
Mount Elbrus, Russia's and Europe's highest point at 5,642 m / 18,511 ft) and the
Altai, and in the eastern parts, such as the
Verkhoyansk Range or the volcanoes on
Kamchatka. The
Ural Mountains form a north-south range that divides Europe and Asia, rich in mineral resources. Russia possesses 10% of the world's
arable land.
Russia has an extensive coastline of over 37,000 kilometers (23,000 mi) along the
Arctic and
Pacific Oceans, as well as the
Baltic,
Black and Caspian seas. The
Barents Sea,
White Sea,
Kara Sea,
Laptev Sea,
East Siberian Sea,
Bering Sea,
Sea of Okhotsk and the
Sea of Japan are linked to Russia. Major islands and archipelagos include
Novaya Zemlya, the
Franz Josef Land, the
New Siberian Islands,
Wrangel Island, the
Kuril Islands and
Sakhalin. The
Diomede Islands (one controlled by Russia, the other by the United States) are just three kilometers (1.9 mi) apart, and
Kunashir Island is about twenty kilometers (12 mi) from
Hokkaidō.
Russia has thousands of rivers and inland bodies of water, providing it with one of the world's largest surface water resources. The most prominent of Russia's bodies of fresh water is
Lake Baikal, the world's deepest, purest and most capacious freshwater lake. Lake Baikal alone contains over one fifth of the world's fresh surface water. Of its 100,000 rivers, The
Volga is the most famous—not only because it's the longest river in Europe but also because of its major role in Russian history. Major lakes include
Lake Baikal,
Lake Ladoga and
Lake Onega. Russia has a wide natural resource base unmatched by any other country, including major deposits of petroleum, natural gas, coal, timber and mineral resources.
Climate
The climate of the Russian Federation formed under the influence of several determining factors. The enormous size of the country and the remoteness of many areas from the sea result in the dominance of the
continental climate, which is prevalent in European and Asian Russia except for the tundra and the extreme southeast.
Throughout much of the territory there are only two distinct seasons — winter and summer; spring and autumn are usually brief periods of change between extremely low temperatures and extremely high. The continental interiors are the driest areas.
History
Early periods
In prehistoric times, the vast
steppes of Southern Russia were home to disunited
tribes of
nomadic pastoralists. In classical antiquity, the
Pontic Steppe was known as
Scythia. Remnants of these steppe civilizations were discovered in the course of the 20th century in such places as
Ipatovo,
Arkaim, and
Pazyryk. In the latter part of the eighth century
BC,
Greek traders brought
classical civilization to the trade emporiums in
Tanais and
Phanagoria. Between the third and sixth centuries BC, the
Bosporan Kingdom, a Hellenistic
polity which succeeded the Greek colonies, was overwhelmed by successive waves of nomadic invasions, led by warlike tribes, such as the
Huns and
Turkic Avars. A Turkic people, the
Khazars, ruled the lower
Volga basin
steppes between the
Caspian and
Black Seas until the 8th century.
The ancestors of modern
Russians are the
Slavic tribes, whose original home is thought by some scholars to have been the wooded areas of the
Pinsk Marshes. Moving into the lands vacated by the migrating
Germanic tribes, the
Early East Slavs gradually settled Western Russia in two waves: one moving from
Kiev toward present-day
Suzdal and
Murom and another from
Polotsk toward
Novgorod and
Rostov. From the 7th century onwards, the East Slavs constituted the bulk of the population in Western Russia the
Muromians, and the
Meshchera.
Kievan Rus
Scandinavian Norsemen, called "
Vikings" in Western Europe and "
Varangians" in the East, combined
piracy and trade in their roamings over much of Northern Europe. In the mid-9th century, they ventured along the waterways extending from the eastern Baltic to the Black and Caspian Seas. According to the
earliest Russian chronicle, a Varangian named
Rurik was elected ruler (
konung or
knyaz) of Novgorod around the year 860; which had been previously dominated by the Khazars.
In the 10th to 11th centuries this state of
Kievan Rus' became the largest and most prosperous in Europe. In the 11th and 12th centuries, constant incursions by nomadic Turkic tribes, such as the
Kipchaks and the
Pechenegs, caused a massive migration of Slavic populations to the safer, heavily forested regions of the north, particularly to the area known as
Zalesye. Like many other parts of
Eurasia, these territories were
overrun by the Mongols. The invaders, later known as
Tatars, formed the state of the
Golden Horde, which pillaged the Russian principalities and ruled the southern and central expanses of Russia for over three centuries. Mongol rule retarded the country's economic and social development. However, the
Novgorod Republic together with
Pskov retained some degree of autonomy during the time of the
Mongol yoke and was largely spared the atrocities that affected the rest of the country. Led by
Alexander Nevsky, Novgorodians repelled the
Germanic crusaders who attempted to colonize the region. Kievan Rus' ultimately disintegrated as a state because of in-fighting between members of the princely family that ruled it collectively. Kiev's dominance waned, to the benefit of
Vladimir-Suzdal in the north-east,
Novgorod in the north-west, and
Galicia-Volhynia in the south-west. Conquest by the Golden Horde in the 13th century was the final blow and resulted in the destruction of Kiev in 1240. Galicia-Volhynia was eventually absorbed into the
Polish-Lithuanian Commonwealth,
In 1547,
Ivan IV (
Ivan the Terrible) was officially crowned the first
Tsar of Russia. During his long reign, Ivan IV annexed the
Tatar khanates (
Kazan,
Astrakhan) along the
Volga River and transformed Russia into a multiethnic and multiconfessional state. Ivan IV promulgated a new code of laws (
Sudebnik of 1550), established the first Russian feudal representative body (
Zemsky Sobor) and introduced local self-management into the rural regions. But Ivan IV's rule was also marked by the long and unsuccessful
Livonian War against the coalition of Poland, Lithuania, Sweden for the access to the Baltic coast and sea trade. The military losses,
epidemics and poor harvests weakened the state, and the
Crimean Tatars were able to
burn down Moscow. The death of Ivan's sons, combined with
famine (1601–1603), led to the civil war and foreign intervention of the
Time of Troubles in the early 1600s. By the mid-17th century there were Russian settlements in Eastern
Siberia, on the
Chukchi Peninsula, along the
Amur River, and on the Pacific coast. The
Bering Strait between
North America and
Asia was first sighted by a Russian explorer in 1648.
Imperial Russia
Under the
Romanov dynasty and
Peter I (
Peter the Great), the Russian Empire was officially founded. Ruling from 1682 to 1725, Peter defeated
Sweden in the
Great Northern War, forcing it to cede West
Karelia and
Ingria (two regions lost by Russia in the
Time of Troubles), Estland, and
Livland, securing Russia's access to the sea and sea trade. It was in Ingria that Peter founded a new capital,
Saint Petersburg. Peter's reforms brought considerable Western European cultural influences to Russia.
Catherine II (
Catherine the Great), who ruled from 1762 to 1796, continued the efforts at establishing Russia as one of the
Great Powers of Europe. In alliance with
Prussia and
Austria, Russia stood against
Napoleon's
France and eliminated its rival Poland-Lithuania in a series of
partitions, gaining large areas of territory in the west. As a result of its victories in the
Russo-Turkish War, by the early 19th century Russia had made significant territorial gains in
Transcaucasia.
Napoleon's invasion failed miserably as obstinate Russian resistance combined with the bitterly cold Russian winter dealt him a disastrous defeat, from which more than 95% of his invading force perished. The officers of the
Napoleonic Wars brought back to Russia the ideas of
liberalism and even attempted to curtail the tsar's powers during the abortive
Decembrist revolt of 1825, which was followed by several decades of political repression.
The prevalence of
serfdom and the conservative policies of
Nicolas I impeded the development of Russia in the mid-nineteenth century. Nicholas's successor
Alexander II (1855–1881) enacted significant reforms, including the
abolition of serfdom in 1861; these "Great Reforms" spurred
industrialization. However, many socio-economic conflicts were aggravated during
Alexander III’s reign and under his son,
Nicholas II. Harsh conditions in factories created mass support for the revolutionary socialist movement. In January, 1905 striking workers peaceably demonstrated for reforms in Saint Petersburg but were fired upon by troops, killing and wounding hundreds. The abject failure of the Tsar's military forces in the initially-popular
Russo-Japanese War, and the event, known as "
Bloody Sunday", ignited the
Russian Revolution of 1905. Although the uprising was swiftly put down by the army and he retained much of his power, Nicholas II was forced to concede major reforms including granting the freedoms of speech and assembly, legalization of political parties and the creation of an elected legislative assembly, the
Duma, however basic improvements in the lives of industrial workers were unfulfilled.
Russia entered
World War I in the aid of its ally
Serbia and fought a war across three fronts while isolated from its allies. Russia didn't want war but felt that only alternative was German domination of Europe. Although the army was far from defeated in 1916, the already existing public distrust of the regime was deepened by the rising costs of war, casualties (Russia suffered the highest amount of
both military and civilian deaths of the
Entente Powers), and tales of corruption and even treason in high places, leading to the outbreak of the
Russian Revolution of 1917. A series of uprisings were organized by workers and peasants throughout the country, as well as by soldiers in the Russian army, who were mainly of peasant origin. Many of the uprisings were organized and led by democratically elected councils called Soviets. The
February Revolution overthrew the Russian monarchy, which was replaced by a shaky coalition of political parties that declared itself the
Provisional Government. The abdication marked the end of imperial rule in Russia, and Nicholas and his family were imprisoned and later executed during the
Civil War. While initially receiving the support of the Soviets, the Provisional Government proved unable to resolve many problems which had led to the February Revolution. The second revolution, the
October Revolution, led by
Vladimir Lenin, overthrew the Provisional Government and created the world’s first Communist state.
Soviet Russia
Following the
October Revolution, a
civil war broke out between the new regime and the
Socialist Revolutionaries,
Mensheviks, and the
White movement. The
Treaty of Brest-Litovsk concluded hostilities with the
Central Powers in World War I. Russia lost
the Ukraine, its
Polish and
Baltic territories, and
Finland by signing the treaty. The
Allied powers launched a
military intervention in support of anti-Communist forces and both the Bolsheviks and White movement carried out campaigns of deportations and executions against each other, known respectively as the
Red Terror and
White Terror. At the end of the Civil War, the economy and infrastructure were devastated. Following victory in the Civil War, the
Russian SFSR together with three other Soviet republics
formed the
Soviet Union on
December 30,
1922. The
Russian Soviet Federative Socialist Republic dominated the Soviet Union for its entire 74-year history; the USSR was often referred to as "Russia" and its people as "Russians." The largest of the republics, Russia contributed over half the population of the Soviet Union. The Bolsheviks introduced free universal health care, education and social-security benefits, as well as the right to work and housing. Women's rights were greatly increased through new laws aimed to wipe away centuries-old inequalities. Notably, Russia became the first country in the world with full freedom of divorce and legalized abortion. After Lenin's death in 1924
Joseph Stalin consolidated power and became
dictator. Stalin launched a
command economy, rapid
industrialization of the largely rural country and
collectivization of its agriculture and the Soviet Union transformed from an agrarian economy to a major industrial powerhouse in a short span of time.
On
June 22,
1941,
Nazi Germany invaded the Soviet Union with the largest and most powerful invasion force in human history, opening the
largest theater of the Second World War. Although the
German army had considerable success early on, they suffered defeats after reaching the outskirts of Moscow and were dealt their first major defeat at the
Battle of Stalingrad in the winter of 1942–1943. Soviet forces drove through
Eastern Europe in 1944–45 and
captured Berlin in May, 1945. In the conflict, Soviet military and civilian death toll were 10.6 million and 15.9 million respectively, accounting for half of all
World War II casualties. The Soviet economy and infrastructure suffered massive devastation but the Soviet Union emerged as an acknowledged
superpower. The
Red Army occupied
Eastern Europe after the war, including the
eastern half of Germany; Stalin installed communist governments in these
satellite states. Becoming the world's second
nuclear weapons power, the USSR established the
Warsaw Pact alliance and entered into a struggle for global dominance with the United States, which became known as the
Cold War.
Under Stalin's successor
Nikita Khrushchev, the Soviet Union launched the world's first artificial
satellite,
Sputnik 1 and the Russian
cosmonaut Yuri Gagarin became the first human being to orbit the
Earth aboard the first manned spacecraft,
Vostok 1. Tensions with the
United States heightened when the two rivals clashed over the deployment of the U.S.
Jupiter missiles in
Turkey and Soviet
missiles in Cuba. Following the ousting of Khrushchev, another period of rule by collective leadership ensued until
Leonid Brezhnev established himself in the early 1970s as the pre-eminent figure in Soviet politics. Brezhnev's rule oversaw
economic stagnation and the
Soviet invasion of Afghanistan, which dragged on without success and with continuing casualties inflicted by
insurgents. Soviet citizens became increasingly discontented with the war, ultimately leading to the withdrawal of Soviet forces by 1989.
From 1985 onwards,
Mikhail Gorbachev introduced the policies of
glasnost (openness) and
perestroika (restructuring) in an attempt to modernize the country. The
USSR economy was the second largest in the world prior to the Soviet collapse.
During its last years, the economy was afflicted by shortages of goods in grocery stores, huge budget deficits and explosive growth in money supply leading to inflation. In August 1991, an unsuccessful
military coup against Gorbachev aimed at preserving the Soviet Union instead led to its collapse. In Russia,
Boris Yeltsin came to power and declared the end of Communist rule. The USSR splintered into fifteen independent republics and was
officially dissolved in December 1991. Boris Yeltsin was elected the
President of Russia in June 1991, in the first direct presidential election in Russian history.
Russian Federation
During and after the disintegration of the USSR when wide ranging reforms including privatisation and
market and trade liberalization were being undertaken,
Price controls were abolished,
privatization was started. Millions were plunged into poverty. Delays in wage payment became a chronic problem with millions being paid months, even years late. Russia took up the responsibility for settling the USSR's
external debts, even though its population made up just half of the population of the USSR at the time of its dissolution. The privatization process largely shifted control of enterprises from state agencies to groups of individuals with inside connections in the Government and the
mafia. Violent criminal groups often took over state enterprises, clearing the way through assassinations or extortion.
Corruption of government officials became an everyday rule of life. Many of the newly rich mobsters and businesspeople took billions in cash and assets outside of the country in an enormous
capital flight. The long and wrenching depression was coupled with social decay. Social services collapsed and the birth rate plummeted while the death rate skyrocketed. The early and mid-1990s was marked by extreme lawlessness.
In 1993 a
constitutional crisis resulted in the worst civil strife in Moscow since the October Revolution. President Boris Yeltsin illegally dissolved the country's legislature which opposed his moves to consolidate power and push forward with unpopular
neo-liberal reforms; in response, legislators barricaded themselves inside the
White House, impeached Yeltsin and elected a new President and major protests against Yeltsin's government resulted in hundreds killed. With military support, Yeltsin sent the army to besiege the parliament building and disperse its defenders and used tanks and artillery to eject the legislators.
The 1990s were plagued by armed ethnic conflicts in the
North Caucasus. and resulted in further GDP decline. On
December 31,
1999 Boris Yeltsin resigned from the presidency, handing the post to the recently appointed prime minister,
Vladimir Putin, who then won the 2000 election. Putin won popularity for suppressing the Chechen insurgency, although sporadic violence still occurs throughout the North Caucasus. Putin's leadership over the return of order, stability and progress has won him widespread popularity in Russia, as well as recognition abroad.
Government and politics
According to the
Constitution, which was adopted by national referendum on
December 12,
1993 following the
1993 Russian constitutional crisis, Russia is a
federation and a
semi-presidential republic, wherein the
President is the
head of state and the
Prime Minister is the
head of government. The Russian Federation is fundamentally structured as a
representative democracy.
Executive power is exercised by the government.
Legislative power is vested in both the
government and the two chambers of the
Federal Assembly. The government is regulated by a system of
checks and balances defined by the Constitution of the Russian Federation, which serves as the country's supreme legal document and as a
social contract for the people of the Russian Federation.
The federal government is composed of three branches:
- Legislative: The bicameral Federal Assembly, made up of the State Duma and the Federation Council makes federal law, declares war, approves treaties, has the power of the purse, and has power of impeachment, by which it can remove sitting members of the government.
- Executive: The president is the commander-in-chief of the military, can veto legislative bills before they become law, and appoints the Cabinet and other officers, who administer and enforce federal laws and policies.
- Judiciary: The Supreme Court, Constitutional Court, Supreme Court of Arbitration and lower federal courts, whose judges are appointed by the Federation Council on the recommendation of the president, interpret laws and can overturn laws they deem unconstitutional.
According to the
Constitution of Russia, constitutional justice in the court is based on the equality of all citizens, judges are independent and subject only to the law, trials are to be open and the accused is guaranteed a defense. Since 1996, Russia has instituted a moratorium on the
death penalty in Russia, although capital punishment hasn't been abolished by law.
The president is elected by popular vote for a four-year term (eligible for a second term but constitutionally barred for a third consecutive term); election last held 2 March 2008. Ministries of the government are composed of the premier and his deputies, ministers, and selected other individuals; all are appointed by the president.
The national legislature is the
Federal Assembly, which consists of two chambers; the 450-member
State Duma and the 176-member
Federation Council. Leading political parties in Russia include
United Russia, the
Communist Party, the
Liberal Democratic Party of Russia and
Fair Russia.
Subdivisions
Federal subjects
The Russian Federation comprises 83 federal subjects. These subjects have equal representation—two delegates each—in the Federation Council. However, they differ in the degree of autonomy they enjoy.
46 oblasts (provinces): most common type of federal subjects, with federally appointed governor and locally elected legislature.
21 republics: nominally autonomous; each has its own constitution, president, and parliament. Republics are allowed to establish their own official language alongside Russian but are represented by the federal government in international affairs. Republics are meant to be home to specific ethnic minorities.
Nine krais (territories): essentially the same as oblasts. The "territory" designation is historic, originally given to frontier regions and later also to administrative divisions that comprised autonomous okrugs or autonomous oblasts.
Four autonomous okrugs (autonomous districts): originally autonomous entities within oblasts and krais created for ethnic minorities, their status was elevated to that of federal subjects in the 1990s. With the exception of Chukotka Autonomous Okrug, all autonomous okrugs are still administratively subordinated to a krai or an oblast of which they're a part.
One autonomous oblast (the Jewish Autonomous Oblast): originally autonomous oblasts were administrative units subordinated to krais. In 1990, all of them except the Jewish AO were elevated in status to that of a republic.
Two federal cities (Moscow and St. Petersburg): major cities that function as separate regions.
Federal districts and economic regions
Federal subjects are grouped into seven federal districts, each administered by an envoy appointed by the President of Russia. Unlike the federal subjects, the federal districts are not a subnational level of government, but are a level of administration of the federal government. Federal districts' envoys serve as liaisons between the federal subjects and the federal government and are primarily responsible for overseeing the compliance of the federal subjects with the federal laws.
Foreign relations and military
The Russian Federation is recognized in international law as continuing the legal personality of the former Soviet Union. Russia continues to implement the international commitments of the USSR, and has assumed the USSR's permanent seat on the UN Security Council, membership in other international organizations, the rights and obligations under international treaties and property and debts. Russia has a multifaceted foreign policy. It maintains diplomatic relations with 178 countries and has 140 embassies. Russia's foreign policy is determined by the President and implemented by the Ministry of Foreign Affairs.
As one of five permanent members of the UN Security Council, Russia plays a major role in maintaining international peace and security, and plays a major role in resolving international conflicts by participating in the Quartet on the Middle East, the Six-party talks with North Korea, promoting the resolution of the Kosovo conflict and resolving nuclear proliferation issues. Russia is a member of the Group of Eight (G8) industrialized nations, the Council of Europe, OSCE and APEC. Russia usually takes a leading role in regional organizations such as the CIS, EurAsEC, CSTO, and the SCO. President Vladimir Putin has advocated a strategic partnership with close integration in various dimensions including establishment of four common spaces between Russia and the EU. Since the collapse of the Soviet Union, Russia has developed a friendlier, albeit volatile relationship with NATO. The NATO-Russia Council was established in 2002 to allow the 26 Allies and Russia to work together as equal partners to pursue opportunities for joint collaboration.
Russia assumed control of Soviet assets abroad and most of the Soviet Union's production facilities and defense industries are located in the country. The Russian military is divided into the Ground Forces, Navy, and Air Force. There are also three independent arms of service: Strategic Rocket Forces, Military Space Forces, and the Airborne Troops. In 2006, the military had 1.037 million personnel on active duty. It has the second largest fleet of ballistic missile submarines and is the only country apart from the U.S. with a modern strategic bomber force. and exporting weapons to about 80 countries. Following the Soviet practice, it's mandatory for all male citizens aged 18–27 to be drafted for two years' Armed Forces service, though various problems associated with this is why the armed forces are from 2008 reducing the conscription term from 18 months to 12, and plan to increase contract servicemen to compose 70% of the armed forces by 2010. Official government military spending for 2008 is $40 billion, though various sources, including US intelligence, and the International Institute for Strategic Studies, have estimated Russia’s military expenditures to be considerably higher.
Currently, the military is undergoing a major equipment upgrade with about $200 billion (what equals to about $400 billion in PPP dollars) on procurement of military equipment between 2006 and 2015.
Economy
Since the turn of the century, rising oil prices, increased foreign investment, higher domestic consumption and greater political stability have bolstered economic growth in Russia. The country ended 2007 with its ninth straight year of growth, averaging 7% annually since the financial crisis of 1998. Approximately 14% of Russians lived below the national poverty line in 2007, significantly down from 40% in 1998 at the worst of the post-Soviet collapse.
Russia has the world's largest natural gas reserves, the second largest coal reserves and the eighth largest oil reserves. It is the world's leading natural gas exporter and the second leading oil exporter. Oil, natural gas, metals, and timber account for more than 80% of Russian exports abroad. The country has more higher education graduates than any other country in Europe.
In the first half of 2007, foreign investment in the Russian economy doubled year-on-year, reaching $60.3 billion. In 2000 total investment in fixed assets was $40 billion, giving growth of 300% by 2006 when it reached $120 billion. A simpler, more streamlined tax code adopted in 2001 reduced the tax burden on people, and dramatically increased state revenue. Russia has a flat personal income tax rate of 13 percent. 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 a 2007 survey by investment services firm Mercer Human Resource Consulting. The federal budget has run surpluses since 2001 and ended 2007 with a surplus of 6% of GDP.
The economic development of the country though has been uneven geographically with the Moscow region contributing a disproportionately high amount of the country's GDP. Much of Russia, especially indigenous and rural communities in Siberia, lags significantly behind. Nevertheless, the middle class has grown from just 8 million persons in 2000 to 55 million persons in 2006. Russia is home to the second largest number of billionaires in the world after the United States, gaining 50 billionaires in 2007 for a total of 110.
Over the last five years, fixed capital investments have averaged real gains greater than 10% per year and personal incomes have achieved real gains more than 12% per year. Despite the country's strong economic performance since 1999, however, the World Bank lists several challenges facing the Russian economy including diversifying the economy, encouraging the growth of small and medium enterprises, building human capital and improving corporate governance.
|-
|Russians||79.8%
|-
|Tatars||3.8%
|-
|Ukrainians||2.0%
|-
|Chuvash||1.1%
|-
|Chechen||0.9%
|-
|Armenians||0.8%
|-
|Other/unspecified||10.3%
|-
|}
According to preliminary estimates, the resident population of the Russian Federation on 1 January 2008 was 142 million people. The vast majority of migrants came from CIS states and were Russians or Russian-speaking. Though Russia's population is comparatively large, its population density is low because of the country's enormous size. Population is densest in European Russia, near the