Political pressure groups and leaders:
NA
International organization participation:
APEC, Arctic Council, ARF, ASEAN (dialogue partner), BIS, BSEC,
CBSS, CE, CERN (observer), CIS, EAEC, EAPC, EBRD, G- 8, GCTU, IAEA,
IBRD, ICAO, ICC, ICCt (signatory), ICRM, IDA, IFC, IFRCS, IHO, ILO,
IMF, IMO, Interpol, IOC, IOM (observer), IPU, ISO, ITU, ITUC, LAIA
(observer), MIGA, MINURSO, MONUC, NAM (guest), NSG, OAS (observer),
OIC (observer), ONUB, OPCW, OSCE, Paris Club, PCA, PFP, SCO, UN, UN
Security Council, UNCTAD, UNESCO, UNHCR, UNIDO, UNITAR, UNMEE,
UNMIL, UNMIS, UNMOVIC, UNOCI, UNOMIG, UNTSO, UNWTO, UPU, WCO, WFTU,
WHO, WIPO, WMO, WTO (observer), ZC
Diplomatic representation in the US: chief of mission: Ambassador Yuriy Viktorovich USHAKOV chancery: 2650 Wisconsin Avenue NW, Washington, DC 20007 telephone: [1] (202) 298-5700, 5701, 5704, 5708 FAX: [1] (202) 298-5735 consulate(s) general: Houston, New York, San Francisco, Seattle
Diplomatic representation from the US: chief of mission: Ambassador William J. BURNS embassy: Bolshoy Deviatinskiy Pereulok No. 8, 121099 Moscow mailing address: PSC-77, APO AE 09721 telephone: [7] (495) 728-5000 FAX: [7] (495) 728-5090 consulate(s) general: Saint Petersburg, Vladivostok, Yekaterinburg
Flag description: three equal horizontal bands of white (top), blue, and red
Economy Russia
Economy - overview: Russia ended 2006 with its eighth straight year of growth, averaging 6.7% annually since the financial crisis of 1998. Although high oil prices and a relatively cheap ruble are important drivers of this economic rebound, since 2000 investment and consumer-driven demand have played a noticeably increasing role. Real fixed capital investments have averaged gains greater than 10% over the last five years, and real personal incomes have realized average increases over 12%. During this time, poverty has declined steadily and the middle class has continued to expand. Russia has also improved its international financial position since the 1998 financial crisis. Over the past several years, Russia has used its stabilization fund based on oil taxes to prepay all Soviet-era sovereign debt to Paris Club creditors and the IMF. Foreign debt has decreased to 39% of GDP, mainly due to decreasing state debt, while commercial debt to foreigners has risen strongly. Oil export earnings have allowed Russia to increase its foreign reserves from $12 billion in 1999 to some $315 billion at yearend 2006, the third largest reserves in the world. These achievements, along with a renewed government effort to advance structural reforms and fiscal restraint, have raised business and investor confidence in Russia's economic prospects. Russia's economy grew 6.6% in 2006 and inflation growth was below 10% for the first time in the past 10 years. Russia shows signs of increasing its ties to the global economy, having signed a bilateral market access agreement with the US as a prelude to possible WTO entry. Nevertheless, serious problems persist. Oil, natural gas, metals, and timber account for more than 80% of exports, leaving the country vulnerable to swings in world commodity prices. Russia's manufacturing base is dilapidated and must be replaced or modernized if the country is to achieve broad-based economic growth. The banking system, while growing at a high rate and increasing consumer lending, is still small relative to the banking sectors of Russia's emerging market peers. Domestic and foreign investor sentiment is tempered by political uncertainties ahead of elections, corruption, and widespread lack of trust in institutions. President PUTIN continues to grant more influence to forces within his government that desire to reassert state control over the economy. Government spending has increased and risks becoming populist, most notably in the form of the four "national projects" of agriculture, education, housing, and medicine. Russia has made little progress in building the rule of law, the bedrock of a modern market economy.
GDP (purchasing power parity):
$1.723 trillion (2006 est.)
GDP (official exchange rate):
$733 billion (2006 est.)
GDP - real growth rate:
6.6% (2006 est.)