Note On Russia In 2002

The Russian Federation (“Russia”) is the largest of the fifteen geopolitical entities that emerged in 1991 from the Soviet Union. With a population of 145 million, Russia succeeded the Soviet Union as the largest country in the world, covering more than 17 million square kilometers in Europe and Asia (Exhibit 1). As was the case in the Soviet and tsarist eras, the center of Russia’s population and economic activity is the European sector, which occupies about one-quarter of the country’s territory. With vast natural resources and a highly educated workforce, Russia’s growth potential is tremendous. This note examines the country’s recent history, political and economic environment, and general business climate.