page_title: Russia
section_title: Economy
hierarchical_section_title: Russia / Economy
caption_attribution_description: English: Alexey Miller on behalf of Russia and China sign a USD$ 400 billion dollar gas deal
context_page_description: Russia, or the Russian Federation, is a transcontinental country located in Eastern Europe and Northern Asia. Covering an area of 17,125,200 square kilometres, it is the largest country in the world by area, spanning more than one-eighth of the Earth's inhabited land area, stretching eleven time zones, and bordering 16 sovereign nations. The territory of Russia extends from the Baltic Sea in the west to the Pacific Ocean in the east, and from the Arctic Ocean in the north to the Black Sea and the Caucasus in the south. With 146.7 million inhabitants living in the country's 85 federal subjects, Russia is the most populous nation in Europe and the ninth-most populous nation in the world. Russia's capital and largest city is Moscow; other major urban areas include Saint Petersburg, Novosibirsk, Yekaterinburg, Nizhny Novgorod, Kazan, Chelyabinsk and Samara.
  The East Slavs emerged as a recognisable group in Europe between the 3rd and 8th centuries AD. The medieval state of Rus' arose in the 9th century. In 988 it adopted Orthodox Christianity from the Byzantine Empire, beginning the synthesis of Byzantine and Slavic cultures that defined Russian culture for the next millennium.
context_section_description: Russia has an upper-middle income mixed economy with enormous natural resources, particularly oil and natural gas. It has the 11th 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 May 2016 the average nominal monthly wages fell below $450 per month, and tax on the income of individuals is payable at the rate of 13% on most incomes. Approximately 19.2 million of Russians lived below the national poverty line in 2016, significantly up from 16.1 million in 2015. Unemployment in Russia was 5.4% in 2014, down from about 12.4% in 1999. Officially, about 20–25% of the Russian population is categorised as middle class; however some economists and sociologists think this figure is inflated and the real fraction is about 7%. After the United States, the European Union and other countries imposed economic sanctions after the annexation of Crimea and a collapse in oil prices, the proportion of middle-class could decrease drastically. The economic development of the country has been uneven geographically with the Moscow region contributing a very large share of the country's GDP.
  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. As of 2012 the oil-and-gas sector accounted for 16% of GDP, 52% of federal budget revenues and over 80% of total exports. Oil export earnings allowed Russia to increase its foreign reserves from $12 billion in 1999 to $597.3 billion on 1 August 2008. As of April 2017, foreign reserves in Russia fell to US$332 Billion. 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.
  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 was approved as a member of the World Trade Organisation after 18 years of dialogue, 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 Norwegi
caption: On 21 May 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.
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