ABSTRACT
Russian economic faced with tough political challenges and severe deterioration with international relations. International sanctions and slow-down marked the new phase of Russian economic and political development. It was a combination of structural and institutional problems, cyclical and external shocks. The government had to make a choice between mobilization and liberalization as two key economic policy alternatives. Analysis includes historical retrospection which provides some important lessons from economic development in the 20th century. Special attention is paid to the question how the growth could be resumed.
