Russian Political, Economic, and Security Issues and U.S. Interests [November 4, 2010]   [open pdf - 550KB]

"Russia made some uneven progress in democratization during the 1990s, but according to most observers, this limited progress was reversed after Vladimir Putin rose to power in 1999-2000. During this period, the State Duma (lower legislative chamber) came to be dominated by government-approved parties and opposition democratic parties were excluded. Putin also abolished gubernatorial elections and established government ownership or control over major media and industries, including the energy sector. The methods used by the Putin government to suppress insurgency in the North Caucasus demonstrated a low regard for the rule of law and scant regard for human rights, according to critics. Dmitriy Medvedev, Vladimir Putin's chosen successor and long-time protégé, was elected president in March 2008 and immediately chose Putin as prime minister. President Medvedev has continued policies established during the Putin presidency. In August 2008, the Medvedev-Putin 'tandem' directed wide-scale military operations against Georgia and unilaterally recognized the independence of Georgia's separatist South Ossetia and Abkhazia, actions that were censured by most of the international community but which resulted in few, minor, and only temporary international sanctions against Russia. Russia's economy began to recover from the Soviet collapse in 1999, led mainly by oil and gas exports, but the sharp decline in oil and gas prices in mid-2008 and other aspects of the global economic downturn put a halt to this growth. The government reported an 8% drop in gross domestic product in 2009. This decline exacerbated existing problems: 15% of the population live below the poverty line; an unreformed healthcare system and unhealthy lifestyles contribute to a population decline; domestic and foreign investment is low; inflation hovers around 12%-14%; and crime, corruption, capital flight, and unemployment remain high. Economic growth has picked up somewhat in 2010."

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CRS Report for Congress, RL33407
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