CHAPTER 3 - GOVERNMENT

3.1 TYPE OF GOVERNMENT

During the Soviet era the Russian Soviet Federated Socialist Republic (the
R.S.F.S.R.) was subject to a series of Soviet constitutions (1918, 1924, 1936,
1977), under which it nominally was a sovereign socialist state within (after 1936)
a federal structure. Until the late 1980s, however, the government was dominated
at all levels by the Communist Party of the Soviet Union, which was all-powerful
and whose head was the country’s de facto leader. Indeed, in the elections that
were held, there was only a single slate of candidates, the great majority of whom
were in effect chosen by the Communist Party From the late 1980s through
1991—the period of Mikhail
Gorbachev’s perestroika (“restructuring”), glasnost (“openness”),
and demokratizatsiya (“democratization”) reform policies—fundamental changes
took place in the political system and government structures of the Soviet Union
that altered both the nature of the Soviet federal state and the status and powers of
the individual republics. In 1988 the Soviet Congress of People’s Deputies was
created, and a Congress of People’s Deputies was established in each republic. For
the first time, elections to these bodies presented voters with a choice of
candidates, including noncommunists though the Communist Party continued to
dominate the system.

Thereafter, the pace of change accelerated. In June 1990 the Congress of the
Russian republic proclaimed that Russian laws took precedence over Soviet laws,
and the following year Boris Yeltsin became the republic’s first democratically
elected president. An abortive coup in August 1991 by hard-liners opposed to
Gorbachev’s reforms led to the collapse of most Soviet government organizations,
the abolition of the Communist Party’s leading role in government, and the
dissolution of the party itself. Republic after republic declared its “sovereignty,”
and in December, when the Soviet Union was formally dissolved, Russia was
established as an independent country.

Constitutional framework
The structure of the new Russian government differed significantly from that of
the former Soviet republic. It was characterized by a power struggle between the
executive and legislative branches, primarily over issues
of constitutional authority and the pace and direction of democratic and economic
reform. Conflicts came to a head in September 1993 when President Yeltsin
dissolved the Russian parliament (the Congress of People’s Deputies and the
Supreme Soviet); some deputies and their allies revolted and were suppressed
only through military intervention.

On December 12, 1993, three-fifths of Russian voters ratified a new constitution

proposed by Yeltsin, and representatives were elected to a new legislature. Under
the new constitution the president, who is elected in a national vote and cannot
serve more than two terms consecutively, is vested with significant powers. As
Russia’s head of state, the president is empowered to appoint the chairman of the
government (prime minister), key judges, and cabinet members. The president is
also commander in chief of the armed forces and can declare martial law or a state
of emergency. When the legislature fails to pass the president’s
legislative initiatives, he may issue decrees that have the force of law. In 2008
an amendment to the constitution, to take effect with the 2012 election, extended
the presidential term from four to six years.

Under the new constitution the Federal Assembly became the country’s
legislature. It consists of the Federation Council (an upper
house comprising appointed representatives from each of Russia’s administrative
divisions) and the State Duma (a 450-member popularly elected lower house). The
president’s nominee for chairman of the government is subject to approval by the
State Duma; if it rejects a nominee three times or passes a vote of no confidence
twice in three months, the president may dissolve the State Duma and call for new
elections. All legislation must first pass the State Duma before being considered
by the Federation Council. A presidential veto of a bill can be overridden by the
legislature with a two-thirds majority, or a bill may be altered to incorporate
presidential reservations and pass with a majority vote. With a two-thirds majority
(and approval by the Russian Constitutional Court), the legislature may remove
the president from office for treason or other serious criminal offenses. The
Federation Council must approve all presidential appointments to the country’s
highest judicial bodies (Supreme Court and Constitutional Court).

The constitution provides for welfare protection, access to social security,

pensions, free health care, and affordable housing; it also guarantees local self-
governance. Nevertheless, national law takes precedence over regional and local
laws, and the constitution enumerates many areas that either are administered
jointly by the regions and the central government or are the exclusive preserve of
the central government. In the years after the constitution’s enactment, the central
government implemented several measures to reduce the power and influence of
regional governments and governors. In 2000 Pres. Vladimir Putin created
seven federal districts above the regional level to increase the central
government’s power over the regions (see discussion below). His
successor, Dmitry Medvedev, continued this policy: as a part
of Moscow’s ongoing efforts to quell separatism and Islamic militancy in
the Caucasus, he created an eighth federal district there in 2010.

Regional and local government

Under the Russian constitution the central government retains significant authority, but regional
and local governments have been given an array of powers. For example, they exercise
authority over municipal property and policing, and they can impose regional taxes. Owing to a
lack of assertiveness by the central government, Russia’s administrative divisions—
oblasti (regions), minority republics, okruga (autonomous districts), kraya (territories), federal
cities (Moscow and St. Petersburg), and the one autonomous oblast—exerted considerable
power in the initial years after the passage of the 1993 constitution. The constitution gives equal
power to each of the country’s administrative divisions in the Federal Assembly. However, the
power of the divisions was diluted in 2000 when seven federal districts (Central, Far East,
Northwest, Siberia, Southern, Urals, and Volga), each with its own presidential envoy, were
established by the central government. In 2010 the southeastern portion of the Southern district
was reorganized as an eighth federal district, North Caucasus. Russia’s ninth federal district was
created in 2014, after it annexed the Ukrainian autonomous republic of Crimea; this territorial
claim was not recognized by Ukraine or most other countries, but Russia exercised de facto
control of the region. The districts’ presidential envoys were given the power
to implement federal law and to coordinate communication between the president and the
regional governors. Legally, the envoys in federal districts had solely the power of
communicating the executive guidance of the federal president. In practice, however, the
guidance served more as a directive, as the president was able to use the envoys to enforce
presidential authority over the regional governments.

In comparison to the federal government, regional governments generally have

inadequate tax revenue to support mandatory items in their budgets, which have
barely been able to cover wages for teachers and police. The budgets of regional
governments also are overburdened by pensions.
Legislation has further affirmed the power of the federal government over the
regions. For example, the regional governors and their deputies were prohibited
from representing their region in the Federation Council on the grounds that their
sitting in the Federation Council violated the principle of the separation of powers;
however, under a compromise, both the legislative and executive branch of each
region sent a member to the Federation Council. Legislation enacted in 2004
permitted the president to appoint the regional governors, who earlier were
elected. In the first decade of the 21st century, the country began to undergo
administrative change aimed at subordinating smaller okruga to neighboring
members of the federation.

Following these reforms in regional government, the new federal districts began to
replace the 11 traditional economic regions, particularly for statistical purposes.
The Central district unites the city of Moscow with all administrative divisions
within the Central and Central Black Earth economic regions. The Northwest
district combines the city of St. Petersburg with all areas in the North and
Northwest regions, including Kaliningrad oblast. The Southern district includes
portions of the Volga and North Caucasus economic regions; the North Caucasus
district encompasses the remaining units of the latter economic region. The Volga
district merges units of the Volga, Volga-Vyatka, and Ural economic regions. The
Urals district consists of the remaining administrative divisions of the Ural
economic region along with several from the West Siberia economic region. The
Siberia district unites the remainder of the West Siberia economic region and all
of East Siberia. Finally, the Far East district is congruent with the Far East economic
region. The Crimean district, created in 2014 following Russia’s annexation of
Ukrainian territory, included the federal city of Sevastopol.
Several of the administrative divisions established constitutions that devolved
power to local jurisdictions, and, though the 1993 constitution guaranteed local
self-governance, the powers of local governments vary considerably. Some local
authorities, particularly in urban centre’s, exercise significant power and are
responsible for taxation and the licensing of businesses. Moscow and St.
Petersburg have particularly strong local governments, with both possessing a tax
base and government structure that dwarf the country’s other regions. Local
councils in smaller communities are commonly rubber-stamp agencies,
accountable to the city administrator, who is appointed by the regional governor.
In the mid-1990s municipal government was restructured. City councils (Dumas),
city mayors, and city administrators replaced former city soviets.

3.2 Form of government:

The government of Russia is a federal semi-presidential republic, according to the

1993 Constitution. Under a semi-presidential structure the President and the Prime
Minister share governing responsibilities as the head of state and head of
government, respectively. The President does, however, hold more power.
Multiple political parties are represented throughout the government and its
administration. Three branches share the responsibilities of running the country:
the executive branch, the legislative branch, and the judicial branch.

What is the Role of the President Of Russia?

The President of Russia acts as the head of the executive branch of the Russian
Government and is elected by the general population to serve a 6-year term. This
office is limited to two consecutive terms. The President is heavily involved in
both the domestic and foreign policies of the country. This includes appointing
foreign ambassadors, participating in international discussions, and signing
international treaties and agreements. Additionally, this official is Commander-in-
Chief of the military and has the power to veto any laws or policies set forth by
the legislative branch. The President of Russia also has the ability to establish
laws without review or approval by other governmental bodies. This power is
beyond what a President typically has under this type of governmental systems.
The Role of the Judicial Branch of the Government of
Russia
The judicial branch ensures that the laws of Russia are upheld. It is separated into
3 kinds of courts: general jurisdiction, arbitration, and constitutional. General
jurisdiction courts consist of municipal courts at the lowest level, regional courts
at the middle level, and the Supreme Court at the highest level. These courts
oversee criminal and civil cases. Arbitration courts are responsible for issues of
property and commercial disputes. The highest level of this type of judicial body
is the Supreme Court of Arbitration. These judges of the Constitutional Court
have the power to interpret laws and presidential decrees and overturn any that
they consider unconstitutional. The President recommends nominees for judges of
the highest courts and the Federation Council decides on and appoints these
nominations.

3.3 DECENTRALIZATION OF GOVERNMENT

On October 25, 2000, Nikolai Petrov, currently visiting professor at Macalester

College and former scholar-in-residence at the Carnegie Moscow Center,
discussed the development of Russian federalism under President Vladimir Putin.
Petrov's discussion was moderated by Carnegie Endowment Senior Associate
Michael McFaul; it was the first session of the "state of the State" monthly series,
which seeks to increase understanding of the recent developments and prospects
of key institutions of the Russian state.

Nikolai Petrov immediately identified his particular angle of analysis as the "state
of centralization and de-centralization under Putin." Petrov pointed to center-
regional relations as a key issue of internal politics in Russia today. He postulated
that the development in center- regional relations since 1990 can be described by a
model of pendulum oscillations, which reflect the balance between the alternative
processes of de-centralization and centralization. The pendulum has been
oscillating between longer periods of decentralization and shorter periods of
centralization, until Putin's ascendancy. Petrov noted that even when the
oscillation led to a greater decentralization, the center was consistently the
determining factor of the changes.
The situation in the year 2000, however, is fundamentally different. Instead of yet
another oscillation in favor of the center, what we observe is a shift in the axis of
the pendulum towards centralization. Petrov explained that the reason for
conceptualizing the changes of 2000 as a fundamental shift is alteration in the
very mechanism of managing center-regional relations.

3.4 NATIONAL SECURITY:

The National Security Concept of the Russian Federation (hereinafter referred to

as the "Concept") is a system of views on how to secure the individual, society
and the state against external and internal threats in every sphere of national life. It
articulates the major thrusts of the Russian Federation's foreign policy. By Russian
Federation national security is meant the security of its multinational people as the
bearer of sovereignty and as the only source of power in the Russian Federation
.Russia in the world community
The world situation is characterized by a system of international relations
undergoing dynamic transformation. Following the end of the bipolar
confrontation era, two mutually exclusive tendencies came to prevail.
Threats to the Russian Federation's national security
The state of the economy, an imperfect system of government and civil society,
the social and political polarization of Russian society and the criminalization of
social relations, the growth of organized crime and increase in the scale of
terrorism, the exacerbation of interethnic and aggravation of international relations
all combine to create a broad spectrum of internal and external threats to the
country's national security.

In the sphere of economy, these threats have a comprehensive character and are
due primarily to a substantial contraction in the gross domestic product; a drop in
investment and innovation activity; the dwindled scientific and technological
potential; agricultural stagnation; the state of imbalance in the banking system; a
rising external and internal national debt, and the tendency for the prevalence in
export supplies of fuel, raw material and energy components, and in import
supplies – of food and consumer items, including articles of prime necessity.

The weakening of the scientific, technical and technological potential of the

country, curtailed research in strategically important areas of science and
technology and the outflow of specialists and intellectual property abroad mean
that Russia is faced with the threat of loss of its leading world positions, decay of
its high-technology industries, increased dependence on foreign technology and
the undermining of its defense capability.

3.5 FOREIGN POLICY:

The Russians are happily free of the “master-race” idea that has hypnotized the
Germans. The various peoples living within the borders of the USSR have not
been welded into a nation, in the sense that the Germans, for example, feel that
they are one “folk.” Nevertheless, the Russians, in moments of wartime crisis, feel
a strong national consciousness.
At the same time they are very much aware of living in an international
community. But, while eager to share in the life of that community, they still are
suspicious about the intentions of the outside world toward Russia. This mixture
of awareness of the outside world and distrust of foreigners causes them to
alternate between nationalism and internationalism.

The Russian tendency to swing from one extreme to the other has been very
noticeable during the past quarter of a century. Lenin and Trotzky, who had lived
abroad for many years, had come under the influence of Western thought. After
they seized power in Russia they were less preoccupied with Russia’s national
problems than with the problems of world revolution. In contrast, Stalin and his
associates had had no contacts with the West before 1917, and Russia’s internal
situation was their chief concern.
When revolutionary movements in Bavaria, Hungary, and China proved to be, in
Lenin’s words, a “false dawn,” Stalin proclaimed the slogan of “building
socialism in one country.” He thought that Russia and the communist cause would
gain more through proving by example that “socialism” could work, than by a
spreading of strength and resources in promoting what Trotzky called “permanent
revolution.” Lenin died in 1924, and in 1927, after many stormy conflicts, Stalin
ousted Trotzky and sent him into exile. From that time on, the Soviet leaders have
increasingly emphasized the national character of the Russian state rather than its
international role as the spearhead of world revolution. Eventually they talked
about the “national fatherland,” instead of the “socialist fatherland” of all workers.

In keeping with this new trend, many plays, films, and books have taken as their
theme the heroic deeds of Russia’s national figures. Among these are Prince
Alexander Nevsky, who de- feated a Teuton invasion in the famous battle of Lake
Peipus in the thirteenth century; Peter the Great; General Suvorov, who in the late
eighteenth century led Russian forces against the French in Italy; and Marshal
Kutuzov, who defended Moscow against Napoleon. The development of the
Russian nation has been emphasized in this way, and Soviet historians no longer
try to present the Bolshevik Revolution as a unique event isolated from the rest of
the country’s history. On the contrary, they link it closely with Russia’s historic
struggle to repel foreign invasion—of the Teutonic knights, Napoleon, or Hitler.

3.6 GOVERNMENT AGREEMENTS

Describes bilateral and multilateral trade agreements that this country is party to,
including with the United States. Includes websites and other resources where
U.S. companies can get more information on how to take advantage of these
agreements. On August 22, 2012, Russia formally joined the WTO, and on
December 20, 2012, the United States established permanent normal trade
relations (PNTR) with Russia, enabling the United States to apply the WTO
agreements with Russia.

As part of WTO accession, Russia signed the General Agreement on Trade in

Services (GATS) that provides a legal framework for addressing barriers affecting
trade in professional services. In the services sector, Russia committed to
substantial transparency in a broad range of sub-sectors, including the elimination
of many existing limitations, such as financial services, telecommunications,
distribution, energy, express delivery, professional services, and audio-visual
services. On October 18, 2011 eight countries (Russia, Belarus, Ukraine,
Moldova, Tajikistan, Armenia, Kazakhstan, Kyrgyzstan) from the Commonwealth
of Independent States (CIS) signed and then in the following years ratified a Free
Trade Agreement (FTA), which provides the free movement of goods within the
territory of the member states. In 2013 Uzbekistan also joined by signing a
separate agreement with the above eight countries. On December 30, 2015
President Putin signed Federal Law 410 Suspending the FTA between Russia and
Ukraine. In response, on January 2, 2016, Ukraine’s Cabinet of Ministers enacted
a resolution No.1146 of December 30, 2015, which abolished trade preferences
for goods from Russia. Both Russia and Ukraine have since continued to extend
the mutual abolition of trade preferences, such that currently, there are no trade
preferences between Russia and Ukraine, and instead, there is an increasing
number of restrictions in Russian-Ukrainian trade in both directions.

Chapter 4- SOCIAL STRUCTURE

4.1 ETHNIC GROUPS

People of many ethnicities. An ethnic group is people who identify with each
other based upon some commonality whether it be their ancestry, experiences as a
group, language similarities, or some other element that has brought the people
together. Tourists from all over the world visit the capital and the beautiful and
culturally rich city of St. Petersburg. But who are the people who live in these
large cities and the vast landscapes beyond them? The cultural diversity of the
Russian people is significant, with an estimated 185 different ethnic groups living
mostly in the urban areas of the massive country.
But who are the people who live in these large cities and the vast landscapes
beyond them? The cultural diversity of the Russian people is significant, with an
estimated 185 different ethnic groups living mostly in the urban areas of the
massive country.
The Russian cultures whose languages are Indo-European in origin include 43
different ethnic groups and comprise nearly 85% of the Russian population. Of
these, the ethnic Russians make up by far the largest group, residing mostly in the
urban regions of European Russia. Slavic in origin, these people speak Russian,
the official language of the country. These people are largely Russian Orthodox,
with a sprinkling of Islam, Catholicism, Protestantism, Judaism, Buddhism, and
others. Professed atheists represent approximately 8% of the population.
The other Indo-European groups in European Russia include the Ukrainians,
Belarusians, Germans, Roma, Moldovans, Poles, Lithuanians, Bulgarians,
Latvians, and many smaller (less than 10,000 members) groups.
Indo-European groups in the Caucasus region of the country (borderland between
the Black and Caspian Seas) include The Armenians, Ossetians, Pontic Greeks,
Yazidis, Kurds, and an array of smaller groups.
Finally, the Tajiks--a group of over 200,000 people--live in the Central Asia
portion of Russia (between the Caspian Sea and China).

Georgians of South Caucasus in

traditional outfits

Located largely in the Caucasus region, the Caucasian people live in a mixed
region of mountains, forests, steppes (unforested grassland), and marshes. Over 50
separate cultures reside in the area of Caucasian mountains, some of which date
back to ancient times. Four families of languages--Caucasian, Indo-European,
Turkic, and Semitic are all represented in the region. Specific language groups
include:

 In the northeast, the Chechens, Avars, Dargins, Lezgians, Ingush, Laks,

Tabasarans, and many smaller groups;
 in the northwest, the Adyghe, Cherkess, and other smaller groups;
 In the south, the Georgians and Georgian Jews.

4.2 Social class system

At the end of the late 19th century, Russian society was strongly
hierarchical. Tsarist political structures, religious values, rules governing land
ownership and Russia’s legal code all reinforced the nation’s social hierarchy,
defining position and status.
Russia’s social structure was often depicted and lampooned in visual propaganda.
For example, there were several versions of the ‘Russian wedding cake’ (see
picture above). In these depictions, Russian society is shown as a feudal pyramid.
The upper classes are propped up by the labour of the working masses, which are
kept in check with work, religion and the threat of violence. In reality, the base of
this cake was significantly broader than these images suggest. The poor peasantry
and the industrial working-class made up more than four-fifths of the population,
while Russia’s educated and professional middle classes were tiny compared to
those of Britain, France and Germany.

The aristocracy
Sitting atop this metaphorical pyramid was Russia’s royalty and aristocracy, who
for the most part lived lives of comfort, isolated from the dissatisfactions of the
lower classes.
Noble titles and land ownership were the main determinants of privilege in tsarist
Russia. The tsar himself was a significant landowner, holding the title of up to ten
per cent of arable land in western Russia. The Russian Orthodox church and its
higher clergy also owned large tracts of land.

The middle classes

Russia’s middle classes worked for the state (usually in the higher ranks of the
bureaucracy) or the private sector, either as small business owners or trained
professionals (such as doctors, lawyers and managers).
Industrial growth in the 1890s helped to expand the middle classes by increasing
the ranks of factory owners, businessmen and entrepreneurs. Members of this
group tended to be educated, worldly and receptive to liberal, democratic and
reformist ideas.
Members of the middle-class were prominent in political groups like the Kadets
(Constitutional Democrats) and, later, well represented in the State Duma.
The peasantry
The peasantry was by far the empire’s largest social class. It contained at least
four out of every five Russians. Most worked small plots of land using methods of
farming that had changed little since the Middle Ages.
Farming in Russia was a difficult business that was dictated by the soil, the
weather and sometimes pure luck. It was generally easier in Russia’s
‘breadbasket’ southern regions, where the soil was dark and rich and the climate
more temperate. Grain crops like barley, rye and oats flourished in these areas.

Post-1861 changes
After the emancipation, the best tracts of farmland were usually allocated to land-
owning nobles. They kept it for themselves or leased it for high rents. The former
serfs were left with whatever remained but were obliged to make 49 annual
redemption payments to the government – in effect, a 49-year state mortgage.
These redemption payments were often higher than the rent and land taxes they
paid before 1861.
Some common land was also controlled and allocated by
the obshchina or mir (peasant commune). The mir was also responsible for other
administrative duties, such as the collection of taxes and the supply of conscripts
to the Imperial Army.

The myopic peasantry

The small size of these peasant communes (most villages contained between 200-
500 people) and their scattered distribution shaped the worldview of Russian
peasants. There was little or no formal education so the majority of peasants were
illiterate. Few peasants travelled and returned, so not much was known about the
world beyond their village.
As a consequence, peasant communities were insular and defensive. They relied
on each other for information and were suspicious, even paranoid about outsiders
and strangers. Few peasants had any understanding of government, politics or
economics. Many were intensely religious and superstition to the point of
medievalism; they believed in magic, witchcraft and devilry and carried symbols
and icons to ward off bad luck.
A sizeable proportion of the peasantry was loyal to the Tsar. Some had completed
military service, where they had been indoctrinated with pro-tsarist ideas. Most
knew little of the Tsar and cared for him even less. They hated the bureaucracy for
its taxes, regulations and impositions; they feared the army for taking away their
sons. They trusted few other than their own.
But for all their political apathy, the peasantry was occasionally roused to action –
particularly by changes that affected them directly, such as food shortages or new
taxes. There were significant peasant protests in 1894 when the government
introduced a state monopoly on vodka production (previously, the peasants could
distil their own, provided they paid a small excise to the state).
Many peasants were also receptive to anti-Semitic propaganda that blamed
Russia’s Jews for everything from harvest failures to missing children. Whipped
up by rumors and agitators, peasant gangs carried out dozens of pogroms in the
late 1800s and early 1900s. Peasant unrest and violence would erupt during
the 1905 Revolution, though it was directed at land-owners more than the
government. Though peasant uprisings were never widespread or coordinated,
they were nevertheless worrying a worrying sign for the tsarist regime.

The plight of Russia’s women

Regardless of class or status, Russian society was deeply patriarchal. Men were
dominant in the community, the workplace and the government.
This was not just a product of social values, it was codified in law. The Russian
legal code gave husbands almost unlimited power to make decisions within the
family. Wives were expected to concede to and obey their husbands. Married
women needed their husband’s express permission to take a job, apply for most
government permits, obtain a passport or commence higher education.
Russian women could not initiate divorce proceedings (though a husband’s legal
authority over his family could be removed in cases of incompetence, such as
alcoholism or mental illness). If a man died then his male children inherited most
of his property; his wife and daughters received only a small share.
The average age of marriage for Russia’s peasant women was 20; for the
aristocracy and middle-classes, it was a few years older. Russia had one of the
highest child mortality rates of the Western world. By the late 1800s, around 47
per cent of children in rural areas did not survive to their fifth birthday.

4.3 RELIGIONS
Is diverse with Christianity, especially Russian Orthodoxy, being the most widely
professed faith, but with significant minorities of non-religious people and
adherents of other faiths. A 1997 law on religion recognizes the right to freedom
of conscience and creed to all the citizenry, the spiritual contribution of Orthodox
Christianity to the history of Russia, and respect to
"Christianity, Islam, Buddhism, Judaism and other religions and creeds which
constitute an inseparable part of the historical heritage of Russia's
peoples", including ethnic religions or Paganism, either preserved or
revived. According to the law, any religious organisation may be recognised as
"traditional" if it was already in existence before 1982, and each newly founded
religious group has to provide its credentials and re-register yearly for fifteen
years, and, in the meantime until eventual recognition, stay without rights.

The Russian Orthodox Church, though its influence is thin in some parts
of Siberia and southern Russia, where there has been a "remarkable revival of pre-
Christian religion”, acts as the de facto if not de jure privileged religion of the
state, claiming the right to decide which other religions or denominations are to be
granted the right of registration. Some Protestant churches which were already in
existence before the Russian Revolution have been unable to re-register, and
the Catholic Church has been forbidden to develop its own territorial
jurisdictions. According to some Western observers, respect for freedom of
religion by Russian authorities has declined since the late 1990s and early
2000s. Activities of the Jehovah's Witnesses are currently banned in Russia.
Religion in Russia (2012)

Russian Orthodox (41%)

Other Orthodox (1.5%)

Unaffiliated Christians (4.1%)

Other Christians (0.5%)

Spiritual but not religious (25%)

 Atheists (13%)

Muslims (6.5%)

Pagans and Tengrists (1.2%)

Buddhists (0.5%)

Other religions (1.1%)

Undeclared (5.5%)

Since the dissolution of the Soviet Union in 1991 there has been a revival and
spread of Siberian shamanism (often mixed with Orthodox elements), and the
emergence of Hindu and new religious movements throughout Russia. There has
been an "exponential increase in new religious groups and alternative
spiritualities", Eastern religions and Neopaganism, even among self-defined
"Christians"—a term which has become a loose descriptor for a variety of eclectic
views and practices. Russia has been defined by the scholar Eliot Borenstein as
the "Southern California of Europe" because of such a blossoming of new
religious movements, and the latter are perceived by the Russian Orthodox Church
as competitors in a "war for souls". However, the multiplicity of religions in
Russia have been traditional components of Russian identities for hundreds of
years, contributing to a long-established ethno-cultural pluralism.

4.4 Population and logetivity

In our map above, countries depicted in the darkest blues have far fewer men than
women – and the former Soviet Union stands out from the rest of the world. This
region has been predominantly female since at least World War II, when many
Soviet men died in battle or left the country to fight. In 1950, there were just 76.6
men per 100 women in the territory that is now Russia. That number rose steadily
in subsequent decades, climbing to 88.4 by 1995 before declining again.

The gender ratio in Russia is currently 86.8 men per 100 women, and the ratios in
Latvia (84.8), Ukraine (86.3), Armenia (86.5), Belarus (86.8) and other former
Soviet nations are similarly low. By contrast, the ratio in the U.S. is 98.3 men per 100
women, and the global ratio is 101.8 men per 100 women, according to 2015 United
Nations data. The U.S. has been more female than male since at least 1950, while
the global population first became majority male around 1960.)

So what are the factors that set the former Soviet bloc apart?

The population in Russia and the former USSR as a whole is older than that of the
world. Most of these nations, including the most populous, also have low fertility
rates compared with the global average. This skews the population’s gender
ratio because older people are more likely to be female, while younger people are
male. Younger men in the former Soviet Union also have an unusually high
mortality rate, which has widened the population’s gender imbalance. One way to
see this is to look at the life expectancy of men and women and the differences
between those numbers.

4.5 Education system

Russia has one of the best mass-education systems in the world, producing a
literacy rate of 98% (higher than most Western European countries). The system
consists of obligatory basic education and higher education. Education in Russia is
compulsory for children between the ages of 6 and 15. It consists of primary
school education for ages 6-10, followed by senior school for ages 10-15. If a
pupil of secondary school wishes to go on in higher education, he or she must
remain to complete secondary school for 2 more years, from ages 15-17.Primary
and secondary school includes 11 years of study. Every school has a core
curriculum of academic subjects. After completing this stage, pupils are awarded
the Attestat o Srednem) Obshchem Obrazovanii (Certificate of Secondary
Complete General Education).

At 15 years old, children may choose to enter a vocational school or non-

university institute. These typically offer programmers of academic subjects and a
programmer of training in a technical field until students reach 17 or 18. Such
institutions used to be called technikum but now most of them are known as
colleges.
Class work often means reciting and written and oral testing. Criticism by the
teacher in front of the class is frequent. If a student does not perform to standard,
they will be ‘left back’ to remain another year

Subjects and Grades

Some subjects are mandatory such as Russian literature, Russian language,
Russian history, world history and the math and sciences. In addition, there are
specialized schools that concentrate on specific subjects.

Students are normally graded on a scale from 2 - 5, with 5 being the top grade.
Each student has his or her “diary”; a personal book of academic achievements in
which teachers record the given grades.

Private and International Schools

Private schools are relatively uncommon in Russia. Such schools emphasize
learning English and other critical skills. Unlike state schools, private schools
usually charge tuition fees.

There are also international schools for expat children in major Russian cities,
such as the Anglo-American School of Moscow. Established by the US, UK and
Canadian Embassies in Moscow, the school features state of the art facilities and
equipment.

4.6 Cultural etiquette

Etiquette in Russia Meeting Etiquette

 The typical greeting is a firm, almost bone-crushing handshake while

maintaining direct eye contact and giving the appropriate greeting for the time
of day.
 When men shake hands with women, the handshake is less firm.
 When female friends meet, they kiss on the cheek three times, starting with the
left and then alternating.
 When close male friends meet, they may pat each other on the back and hug.

Naming Conventions
Russian names are comprised of:

 First name, which is the person's given name.

 Middle name, which is a patronymic or a version of the father's first name
formed by adding '- vich' or '-ovich' for a male and '-avna' or '- ovna' for a
female. The son of Ivan
 Would have a patronymic of Ivanovich while the daughter's patronymic would
be Ivanovna.
 Last name, which is the family or surname.
 In formal situations, people use all three names. Friends and close
acquaintances may refer to each other by their first name and patronymic.
Close friends and family members call each other by their first name only.

Gift Giving Etiquette

 Gift giving using takes place between family and close friends on birthdays,
New Year, and Orthodox Christmas.
 If you are invited to a Russian home for a meal, bring a small gift.
 Male guests are expected to bring flowers.
 Do not give yellow flowers.
 Do not give a baby gift until after the baby is born. It is bad luck to do so
sooner.
 Russians often protest when they are offered a gift. Reply that it is a little
something and offer the gift again and it will generally be accepted.

Dining Etiquette
If you are invited to a Russian's house:

 Arrive on time or no more than 15 minutes later than invited.

 Remove your outdoor shoes. You may be given slippers to wear.
 Dress in clothes you might wear to the office. Dressing well shows respect for
your hosts.
 Expect to be treated with honor and respect.
 Offer to help the hostess with the preparation or clearing up after a meal is
served. This may be turned down out of politeness. Asking 'are you sure?'
allows the hostess to accept your offer.

Relationships & Communication

 Russians are transactional and do not need to establish long-standing personal

relationships before they do business with people.
 It is still a good idea to develop a network of people who you know and trust.
The Russian word "svyasi" means connections and refers to having friends in
high places, which
 is often required to cut through red tape.
 Patience is essential.
 It is best to err on the side of formality when you first make contact.
 Sincerity is crucial as it is required to build trust, and trust is needed to build a
relationship.
 Most Russians do not trust people who are 'all business'.
 An indication that you have successfully developed a personal relationship is
being asked for a favor by that person.

Business Negotiating
 Meetings and negotiations are slow. Russians do not like being rushed.
 It is a good idea to include technical experts on your negotiating team.
 Hierarchy is important to Russians. They respect age, rank and position. The
most senior person reaches decisions.
 Russian executives prefer to meet with people of similar rank and position.
 Russians see negotiations as win-lose. They do not believe in win-win
scenarios.
 Have written materials available in both English and Russian.
 Russians view compromise as weakness. They will continue negotiating until
you offer concessions.
 Russians may lose their temper, walk out of the meeting, or threaten to
terminate the relationship in an attempt to coerce you to change your position.
 Russians often use time as a tactic, especially if they know that you have a
deadline. Be cautious about letting your business colleagues know that you are
under time pressure or they will delay even more.
 Nothing is final until the contract is signed. Even then, Russians will modify a
contract to suit their purposes.
 Do not use high-pressure sales tactics as they will work against you.

Dress Etiquette

 Business dress is formal and conservative.

 Men should wear business suits.
 Women should wear subdued colored business suits with skirts that cover the
knees.
  Shoes should be highly polished.

Business Cards

 Business cards are exchanged after the initial introductions without formal
ritual.
 Have one side of your business card translated into Russian using Cyrillic text.
 Include advanced university degrees on your business card.
 Hand your business card so the Russian side is readable to the recipient.
 If someone does not have a business card, note their pertinent information ..

4.7 Famous personalities

10 of the most successful and famous people in Russian civilization

1. Vladimir Putin. Aleksey Nikolskyi/Sputnik. ...

2. Mikhail Gorbachev. Boris Kavashkin/Russian Look. ...
3. Alexander Ovechkin. Dave Sandford/NHLI via Getty Images. ...
4. Lev Tolstoy. Sergey Prokudin-Gorsky/TASS. ...
5. Pyotr Tchaikovsky. Getty.
6. Maya Plisetskaya
7. Yuri Gagarin. ...
8. Roman Abramovich.
9. Alexander solzhentian

Chapter 5 ECONOMIC SYSTEM

5.1 Sectoral distribution of growth
Russia's GDP Composition
Russia’s GDP is largely made up of three broad sectors: A small agricultural
sector that contributes about 5% to GDP, followed by its industrial sector and
service sector, which contribute 32% and 62%, respectively, according to the most
recent World Bank data.

Agricultural Sector
Harsh weather and tough geographic conditions make cultivation of land arduous
and restricted to a few small areas of the nation. This is one of the main reasons
behind the minimal role of the agricultural sector in Russia’s economy in terms of
its contribution to GDP. The agricultural sector is small—just under 5% of
Russia’s GDP. But it provides employment to almost 6% of the population. The
agrarian sector is characterized by the coexistence of both the formal sector,
represented by large producers for commercial purposes, and the informal sector,
where small landholders produce for self-sustenance. The sector includes forestry,
hunting, and fishing, as well as cultivation of crops and livestock production.

Despite being a large exporter of certain food items, Russia is a net importer in
agriculture and food. According to the World Bank, food also includes live
animals, beverages and tobacco, animal and vegetable oils and fats, and oilseeds,
oil nuts, and oil kernels. Other than the non-availability or shortage of certain food
products domestically, a few factors explain Russia’s rising food imports. One is
the higher inflation in Russia vis-à-vis its trading partners, which makes foreign
imports more price competitive. The second reason is its sound economic
progress, especially from 2000 to 2008. This boom period led to income growth,
further pushing up consumer demand for food, which was met by imports.In 2014,
in response to the West's food embargoes, the Russian government banned certain
food categories including dairy, meat, and produce from several countries
including the United States and the European Union, which significantly dropped
Russia's share of food imports. Its domestic food production increased by over
4.7% in 2018, with drink production increasing by 3% from the previous year

Industrial Sector
The contribution of Russia’s industrial sector to its GDP has remained more or
less stable, averaging about 35% over the years. The industrial sector comprises
mining, manufacturing, construction, electricity, water, and gas and currently
provides employment to around 27% of the Russian population. Russia has an
array of natural resources, with a prominence of oil and natural gas, timber,
deposits of tungsten, iron, diamonds, gold, platinum, tin, copper, and titanium.
Major industries in the Russian Federation have capitalized on its natural
resources. One of the prominent industries is machine building, which suffered
heavily after the disintegration of the Soviet Union as there was a severe shortage
of capital. It re-emerged with time and is the leading provider of machinery and
equipment to the other industries in the economy.

Next is the chemical and petrochemical industry which contributes about 1.5% to
Russia’s GDP. According to an Ernst & Young Report, “A large number of
products with higher added value (such as specialty composites and additives) are
not produced in Russia. China and Europe, for example, produce about 25% and
20% of the world’s primary plastics respectively, while Russia produces only
2%.” Going by importance, the fuel and energy complex (FEC) is one of the most
crucial for the Russian economy. It comprises the mining and production of
energy resources, processing, delivery, and consumption of all types of energy.
The FEC complex not only supports multiple sectors in the economy, but its
products are also Russia's main exports.

Service Sector
The service sector's contribution to Russia’s GDP has increased over the years
from 38% in 1991 to 57% in 2001. The service sector currently comprises almost
62% of the country's GDP and employs the most people in the country—more
than 67% of the population. The important segments of the Russian service sector
are financial services, communications, travel and tourism, advertising, marketing
and sales, real estate, healthcare and social services, art and culture, IT services,
wholesale, and retail trade and catering. It is often pointed out that as the
crisis that accompanied the fall of the Soviet Union devastated agriculture and
industry, it gave services a chance to pick up.

5.2 NATURAL RESOURCE

Natural Resources, Economy of Russia

Natural Resources of Russia
Natural resources potential of Russia is over 20% of the world’s reserves. This
fact places Russia on a special place among industrialized countries. Natural
resources used by the economy of Russia account for 95.7% of national wealth.
There are large deposits of fuel and energy resources: oil, natural gas, coal and
uranium ore.
Russia is ranked first in the world by gas reserves (32% of world’s reserves, 30%
of world production), the second in oil production (10% share of world
production), the third - in coal reserves (22 coal basins, 115 fields, including those
in European Russia - about 15.6% in Siberia - 66.8% in the Far East - 12.9%, in
the Urals - 4.3%). In terms of reserves of iron ores Russia takes the first place, in
tin – the second, lead - the third. Russia also occupies a leading position in the
world in wood provision.
In 2005 Russia was the richest country in gold reserves.
In Russia there are five major oil and gas provinces located in European part of
the country and in Western Siberia in 10 regions and 11 provinces and republics:
West Siberian, Volga-Urals, Timan-Pechora, the North Caucasus and the Caspian
Sea area.
In addition, metal ores are mined on the country’s territory ores: iron, nickel,
copper, aluminum, tin, polymetals, chromium, tungsten, gold, and silver. There is
a great variety of non-metallic ores: phosphates, apatites, talc, asbestos, mica,
potash and salt, diamonds, amber, precious and semiprecious stones. Very
common are construction materials: sand, clay, limestone, marble, granite and
other materials.

5.3 Trade- domestic and international

U.S. companies face a number of tariff and non-tariff trade barriers when
exporting to Russia. For example, for importers of alcoholic products there is a
long-standing requirement that all Customs duties, excise taxes, and value-added
taxes on alcohol be paid in advance using a bank guarantee and deposit, for which
the reimbursement process is very slow. U.S. industry is concerned that the
assessment and licensing procedures administered by different Russian
government agencies and the EEC (Eurasian Economic Commission, the
executive body of the Eurasian Economic Union, a.k.a. EAEU) add an
unnecessary level of complexity leading to increased costs and delays. Nearly all
U.S. food and agricultural exports were banned by the Russian government in
August 2014, in reaction to the imposition of sanctions against Russia. U.S.
companies also cite technical regulations and related product testing and
certification requirements as major obstacles for a range of imported goods.
Russian authorities require product testing and certification as key elements of the
product approval process for a variety of products, and only an entity registered
and residing in Russia can apply for the necessary documentation for those
product approvals. Opportunities for testing and certification performed by
competent bodies outside Russia are limited.
Additionally, U.S. companies have observed that the procedures associated with
Russia’s requirement to have a “supplier’s declaration of conformity” are
unnecessarily burdensome. This document is meant to confirm the safety of
products for the environment and the health of people and animals. Manufacturers
of telecommunications equipment, oil and gas equipment, and construction
materials and equipment, in particular, have reported serious difficulties in
obtaining product approvals within Russia. Other member countries of the EAEU
are in the process of adopting a similar system.

5.3 trade – Domestic and international

General regulation
Since August 25, 2009 export and import of substances destroying ozone is to be
permitted in the following cases: using them as raw materials for producing other
chemical substances; in the special cases of other application and in the
exceptions stipulated by the Montreal protocol; for transit transportation across
Russia from the states being members of the Montreal protocol to the similar
states (Russian Government resolution №678, August 20, 2009)

Export regulation
Non-tariff measures
The amendments are made in the Russian tariff heading numbers in respect of
light crude oil lifted in the specific deposits of East Siberia. For this purpose
individual tariff heading number 2709 00 900 1 is given to this kind of oil since
September 21, 2009. (Russian Government resolution №574, July 16, 2009)
The amendments are also made in the Russian tariff heading numbers in respect of
heavy distillates since November 18, 2009. In particular, individual ratiff heading
numbers are given to heating fuel oil and other heavy distillates (2710 19 510 1,
2710 19 510 9, 2710 19 550 1, 2710 19 550 9, 2710 19 610 1, 2710 19 610 9,
2710 19 630 1, 2710 19 630 9, 2710 19 650 1, 2710 19 650 9, 2710 19 690 1 and
2710 19 690 9) (Russian Government resolution №728, September 14, 2009).
Since January 6, 2010, the amendments are also made in the Russian tariff
heading numbers in respect of light distillates. Tariff heading number 2710 11 900
0 (other light distillates) is excluded. Tariff heading number 2710 11 900 1 is
given to propylene trimers and tetramers and 2710 11 900 9 – for other light
distillates. (Russian Government resolution №876, October 31, 2009
individual tariff heading number 2709 00 900 1 is given to this kind of oil since
September 21, 2009. (Russian Government resolution №574, July 16, 2009)
The amendments are also made in the Russian tariff heading numbers in respect of
heavy distillates since November 18, 2009. In particular, individual ratiff heading
numbers are given to heating fuel oil and other heavy distillates (2710 19 510 1,
2710 19 510 9, 2710 19 550 1, 2710 19 550 9, 2710 19 610 1, 2710 19 610 9,
2710 19 630 1, 2710 19 630 9, 2710 19 650 1, 2710 19 650 9, 2710 19 690 1 and
2710 19 690 9) (Russian Government resolution №728, September 14, 2009).
Since January 6, 2010, the amendments are also made in the Russian tariff
heading numbers in respect of light distillates. Tariff heading number 2710 11 900
0 (other light distillates) is excluded. Tariff heading number 2710 11 900 1 is
given to propylene trimers and tetramers and 2710 11 900 9 – for other light
distillates. (Russian Government resolution №876, October 31, 2009) Import
regulation
The list of tobacco products subject to obligatory conformity certification for
selling or using in the Russian territory is fixed since December 26, 2009. The list
includes cigars, cigarillos, cigarettes etc. (2402 10 000 0 and 2420), smoking
tobacco (2403 10 100 0), chewing and snuffing tobacco (2403 99 100 0) and other
tobacco (2403 99 900 9). (Russian Government resolution №687, August 20,
2009)
Russia’s Government passed a list fishing equipment banned for import. Since
September 5, 2009, they include: ready made fish-nets made of nylon and other
polyamide threads (5608 11 190 0); readymade fish-nets made of other synthetic
threads (5608 11 990 0); electrical devices for catching fish (8543 20 000 0).
(Russian Government resolution №694, August 20, 2009)
Since September 10, 2009, the ban has been imposed on registering the following
goods for the customs regime of free customs zone applied in Kaliningrad region:
building bricks and other ceramic wares for construction (6904 10 000 0 and 6904
90 000 0); cans for conserving foodstuffs (7310 21 110 0); metal covers for
closing cans with foodstuffs (from 8309 90 900 0). (Russian Government
resolution №703, August 28, 2009).

5.5 Institutions of national importance

School of Planning & Architecture Vijaywada, Andhra Pradesh (Id: U-0627) 2.

National Institute of Technology Arunachal Pradesh (Id: U-0615) 3. Indian
Institute of Technology, Guwahati, Assam (Id: U-0053) 4. National Institute of
Technology, Silchar, Assam (Id: U-0055) 5. All India Institute of Medical
Sciences, Patna, Bihar (Id: U-0686) 6. Indian Institute of Technology, Patna,
Bihar (Id: U-0064) 7. National Institute of Technology, Patna, Bihar (Id: U-0072)
8. All India Institute of Medical Sciences, Raipur, Chhatisgarh (Id: U-0690) 9.
National Institute of Technology, Raipur, Chhatisgarh (Id: U-0092) 10. All India
Institute of Medical Sciences, Delhi (Id: U-0096) Indian Institute of Technology,
Delhi (Id: U-0100) 12. National Institute of Technology, Delhi (Id: U-0622) 13.
School of Planning & Architecture, New Delhi (Id: U-0116) 14. National Institute
of Technology, Goa (Id: U-0620) 15. Indian Institute of Technology,
Gandhinagar, Gujarat (Id: U-0139) 16. SardarVallabhbhai National Institute of
Technology, Surat, Gujarat (Id: U-0149) 17. National Institute of Technology,
Kurukshetra, Haryana (Id: U-0172) 18. Indian Institute of Technology, Mandi,
Himachal Pradesh (Id: U-0184) 19. National Institute of Technology, Hamirpur,
Himachal Pradesh (Id: U-0189) 20. National Institute of Technology, Srinagar,
Jammu and Kashmir (Id: U-0197) 21. National Institute of Technology,
Jamshedpur, Jharkhand (Id: U-0207) 22. National Institute of Technology,
Karnataka, Karnataka (Id: U-0237)

5.6 key economic challenges

The Russian economy managed to get out of the downward cycle after 2014
caused primarily by sanctions and falling oil prices, which considerably affected
the Russian economy still suffering from Dutch disease with its over-dependence
on exports of natural resources. The economy tends to have a positive balance of
trade and positive current accounts, the budget deficit is low and close to 0% of
GDP, there is low unemployment (4.5%), and relatively low inflation (a forecast
of 4% for 2019) compared to previous periods. The central bank manages to grow
its currency reserves by buying currency as part of the budget rule
Nevertheless, economic growth in Russia is weaker than expected. It was 0.3% in
2016, 1.6% in 2017, and 2.2% in 2018. In July the leading GDP indicator
compiled by the Ministry of Economic Development rose to show growth of 1.7%
year-on-year. The forecasts for 2019 are still below 2% growth. Consumption as a
driver of economic growth (the share of consumption oscillating at around 70% of
Russian GDP) is stagnating, on the verge of stagnating, or shrinking disposable
income. Over 15% of Russians live below the poverty line.
The share of Russia’s economy in the global economy is still low. Under the
USSR the Union’s share varied from 5% to 12% of the global economy; today
Russia’s share is below 2%, at the same level as South Korea, whereas China,
India, and Brazil are largely outpacing Russia, despite its richness in natural
resources and land. The first systemic challenge is the lack of economic
incentives from regional authorities to stimulate regional economic growth. Russia
is still relying mainly on the principle where taxes are collected locally, but are
spent and distributed at the federal level. The taxes that remain at the regional
level can hardly provide a sufficient financial cushion to finance growth. At the
same time, VAT constituted 37% of all budget revenues in 2018, making it the
main source of revenue in the federal budget, more important than the revenue
from taxes on resource extraction, on profits or excise duties. VAT as the tax on
development is generated at the regional level, but is fully transferred to the
federal government. VAT is supposed to be a motivational tax for regional
authorities to attract investment, but the regions are reluctant to do so because the
tax keeps leaving their regions.
The second problem is inflation policy. The Central Bank of Russia, often
considered by international economists one of the world’s most successful
regulators, is conducting high interest rate policy. One of the reasons is to stem
potential inflationary pressures. Thus, the central bank’s interest rate policy is
often between the Scylla of inflation if the key rate is too low and the Charybdis
of low spending if the key rate is too high. In 2015, the central bank increased the
key rate to almost 17% in an effort to curtail inflationary pressures, gradually
decreasing it in the following years in order to stimulate consumption. Despite
another reduction in the key rate at the end of October 2019, it is still 6.5%, thus
creating an obstacle to stimulating new investment, spending and private
consumption. Russian citizens hold over 18 trillion rubles on deposits, whereas
the entire GDP is 89 trillion rubles in 2016 prices. Capital flight is still high – 60
billion USD in 2018.
 Share on Lin kedIn

Se