Founded in the 12th century, the Principality of Muscovy, was able to emerge from over 200 years of Mongol domination (13th-15th centuries) and to gradually conquer and absorb surrounding principalities. In the early 17th century, a new Romanov Dynasty continued this policy of expansion across Siberia to the Pacific. Under PETER I (ruled 1682-1725), hegemony was extended to the Baltic Sea and the country was renamed the Russian Empire. During the 19th century, more territorial acquisitions were made in Europe and Asia. Defeat in the Russo-Japanese War of 1904-05 contributed to the Revolution of 1905, which resulted in the formation of a parliament and other reforms. Repeated devastating defeats of the Russian army in World War I led to widespread rioting in the major cities of the Russian Empire and to the overthrow in 1917 of the imperial household. The Communists under Vladimir LENIN seized power soon after and formed the USSR. The brutal rule of Iosif STALIN (1928-53) strengthened Communist rule and Russian dominance of the Soviet Union at a cost of tens of millions of lives. The Soviet economy and society stagnated in the following decades until General Secretary Mikhail GORBACHEV (1985-91) introduced glasnost (openness) and perestroika (restructuring) in an attempt to modernize Communism, but his initiatives inadvertently released forces that by December 1991 splintered the USSR into Russia and 14 other independent republics. Since then, Russia has struggled in its efforts to build a democratic political system and market economy to replace the social, political, and economic controls of the Communist period. While some progress has been made on the economic front, and Russia's management of its windfall oil wealth has improved its financial standing, recent years have seen a recentralization of power under Vladimir PUTIN and democratic institutions remain weak. Russia has severely disabled the Chechen rebel movement, although sporadic violence still occurs throughout the North Caucasus.

Geography

Russia is the largest country in the world in terms of area but unfavorably located in relation to major sea lanes of the world; despite its size, much of the country lacks proper soils and climates (either too cold or too dry) for agriculture; Mount El'brus is Europe's tallest peak.

Location: Northern Asia (the area west of the Urals is considered part of Europe), bordering the Arctic Ocean, between Europe and the North Pacific Ocean

Area: total: 17,075,200 sq km; land: 16,995,800 sq km; water: 79,400 sq km

Land boundaries: total: 20,096.5 km; border countries: Azerbaijan 284 km, Belarus 959 km, China (southeast) 3,605 km, China (south) 40 km, Estonia 294 km, Finland 1,340 km, Georgia 723 km, Kazakhstan 6,846 km, North Korea 19 km, Latvia 217 km, Lithuania (Kaliningrad Oblast) 280.5 km, Mongolia 3,485 km, Norway 196 km, Poland (Kaliningrad Oblast) 232 km, Ukraine 1,576 km

Coastline: 37,653 km

Climate: ranges from steppes in the south through humid continental in much of European Russia; subarctic in Siberia to tundra climate in the polar north; winters vary from cool along Black Sea coast to frigid in Siberia; summers vary from warm in the steppes to cool along Arctic coast

Terrain: broad plain with low hills west of Urals; vast coniferous forest and tundra in Siberia; uplands and mountains along southern border regions

Elevation extremes: lowest point: Caspian Sea -28 m; highest point: Gora El'brus 5,633 m

Natural resources: wide natural resource base including major deposits of oil, natural gas, coal, and many strategic minerals, timber; note: formidable obstacles of climate, terrain, and distance hinder exploitation of natural resources.

People

Population: 141,377,752 (July 2007 est.)

Net migration rate: 0.28 migrant(s)/1,000 population (2007 est.)

Life expectancy at birth: total population: 65.87 years; male: 59.12 years; female: 73.03 years (2007 est.)

Ethnic groups: Russian 79.8%, Tatar 3.8%, Ukrainian 2%, Bashkir 1.2%, Chuvash 1.1%, other or unspecified 12.1% (2002 census)

Religions: Russian Orthodox 15-20%, Muslim 10-15%, other Christian 2% (2006 est.) note: estimates are of practicing worshipers; Russia has large populations of non-practicing believers and non-believers, a legacy of over seven decades of Soviet rule

Languages: Russian, many minority languages

Government

Government type: federation

Capital: Moscow

Administrative divisions: 47 oblasts (oblastey, singular - oblast), 21 republics (respublik, singular - respublika), 6 autonomous okrugs (avtonomnykh okrugov, singular - avtonomnyy okrug), 8 krays (krayev, singular - kray), 2 federal cities (goroda, singular - gorod), and 1 autonomous oblast (avtonomnaya oblast')
oblasts: Amur (Blagoveshchensk), Arkhangel'sk, Astrakhan', Belgorod, Bryansk, Chelyabinsk, Chita, Irkutsk, Ivanovo, Kaliningrad, Kaluga, Kemerovo, Kirov, Kostroma, Kurgan, Kursk, Leningrad, Lipetsk, Magadan, Moscow, Murmansk, Nizhniy Novgorod, Novgorod, Novosibirsk, Omsk, Orenburg, Orel, Penza, Pskov, Rostov, Ryazan', Sakhalin (Yuzhno-Sakhalinsk), Samara, Saratov, Smolensk, Sverdlovsk (Yekaterinburg), Tambov, Tomsk, Tula, Tver', Tyumen', Ul'yanovsk, Vladimir, Volgograd, Vologda, Voronezh, Yaroslavl'
republics: Adygeya (Maykop), Altay (Gorno-Altaysk), Bashkortostan (Ufa), Buryatiya (Ulan-Ude), Chechnya (Groznyy), Chuvashiya (Cheboksary), Dagestan (Makhachkala), Ingushetiya (Magas), Kabardino-Balkariya (Nal'chik), Kalmykiya (Elista), Karachayevo-Cherkesiya (Cherkessk), Kareliya (Petrozavodsk), Khakasiya (Abakan), Komi (Syktyvkar), Mariy-El (Yoshkar-Ola), Mordoviya (Saransk), North Ossetia (Vladikavkaz), Sakha [Yakutiya] (Yakutsk), Tatarstan (Kazan'), Tyva (Kyzyl), Udmurtiya (Izhevsk)
autonomous okrugs: Aga Buryat (Aginskoye), Chukotka (Anadyr'), Khanty-Mansi, Nenets (Nar'yan-Mar), Ust'-Orda Buryat (Ust'-Ordynskiy), Yamalo-Nenets (Salekhard)
krays: Altay (Barnaul), Kamchatka, Khabarovsk, Krasnodar, Krasnoyarsk, Permskiy, Primorskiy (Vladivostok), Stavropol'
federal cities: Moscow (Moskva), Saint Petersburg (Sankt-Peterburg)
autonomous oblast: Yevrey [Jewish] (Birobidzhan)
note: administrative divisions have the same names as their administrative centers (exceptions have the administrative center name following in parentheses)

chief of state: President Vladimir Vladimirovich PUTIN (acting president 31 December 1999-6 May 2000, president since 7 May 2000)

head of government: Premier Mikhail Yefimovich FRADKOV (since 5 March 2004); First Deputy Premiers Dmitriy Anatolyevich MEDVEDEV (since 14 November 2005) and Sergey Borisovich IVANOV (since 15 February 2007), Deputy Premier Aleksandr Dmitriyevich ZHUKOV (since 9 March 2004)

Economy

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 initially drove this growth, since 2003 consumer demand and, more recently, investment have played a significant role. Over the last five years, fixed capital investments have averaged real gains greater than 10% per year and personal incomes have achieved real gains more than 12% per year. 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. The federal budget has run surpluses since 2001 and ended 2006 with a surplus of 9% of GDP. 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, although 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. During PUTIN's first administration, a number of important reforms were implemented in the areas of tax, banking, labor, and land codes. These achievements have raised business and investor confidence in Russia's economic prospects, with foreign direct investment rising from $14.6 billion in 2005 to an estimated $30 billion in 2006. In 2006, Russia's GDP grew 6.6%, while inflation was below 10% for the first time in the past 10 years. Growth was driven by non-tradable services and goods for the domestic market, as opposed to oil or mineral extraction and exports. Russia has signed a bilateral market access agreement with the US as a prelude to possible WTO entry, and its companies are involved in global merger and acquisition activity in the oil and gas, metals, and telecom sectors. Despite Russia's recent success, serious problems persist. Oil, natural gas, metals, and timber account for more than 80% of exports and 32% of government revenues, 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. A 20% appreciation of the ruble over 2005-06 has made attracting additional investment more difficult. The banking system, while increasing consumer lending and growing at a high rate, is still small relative to the banking sectors of Russia's emerging market peers. Political uncertainties ahead of the elections, corruption, and widespread lack of trust in institutions continue to dampen domestic and foreign investor sentiment. From 2002 to 2005, the government bureaucracy increased by 17% - 10.9% in 2005 alone. President PUTIN has granted more influence to forces within his government that desire to reassert state control over the economy. Russia has made little progress in building the rule of law, the bedrock of a modern market economy. The government has promised additional legislation to make its intellectual property protection WTO-consistent, but enforcement remains problematic.

Labor force: 73.88 million (2006 est.)

Labor force - by occupation: agriculture: 10.8%; industry: 29.1%; services: 60.1% (2005 est.)

Unemployment rate: 6.6% plus considerable underemployment (2006 est.)

Industries: complete range of mining and extractive industries producing coal, oil, gas, chemicals, and metals; all forms of machine building from rolling mills to high-performance aircraft and space vehicles; defense industries including radar, missile production, and advanced electronic components, shipbuilding; road and rail transportation equipment; communications equipment; agricultural machinery, tractors, and construction equipment; electric power generating and transmitting equipment; medical and scientific instruments; consumer durables, textiles, foodstuffs, handicrafts

information courtesy The World Factbook Spetember 2007