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Russia: Key facts
Transition to capitalism

Russia's economy went into decline with the break-up of the Soviet Union in 1991.

People on fixed incomes faced a sharp drop in their standard of living while state-owned industries were auctioned off to entrepreneurs at rock-bottom prices.

In 1998, an economic crisis led to a big devaluation of the rouble which had a beneficial effect and led to the start of a recovery.

Since 2000, soaring oil and gas revenues have boosted state coffers and helped Russia pay off its international debts.

In 2006, Gross Domestic Product grew by about 6.7%, but overall, Russia's economy is still much smaller than other G8 industrialised nations.

The US and Europe designated Russia a market economy in 2002, but the state still exerts considerable control over business.

Gas pipeline under construction

Gas and oil revenues helped lift the economy out of crisis


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