ABSTRACT
A primary objective of this study is to analyze the key factors responsible for Russia’s successful economic transition since the crisis of August 1998, factors that have frequently been misinterpreted. The study is in two parts. Part one examines Russia’s restructuring in the period from late 1998 to 2005, discusses the continuing effects of the economic legacies of the 1990s, and records the influence of President Vladimir V. Putin on the transition.1 Part two presents the basic principles applicable to the creation of a successful Russian market economy for the long term and recommends policies for integrating the Russian economy with the EuropeanAtlantic community. The main economic indicators and the new statistical data relevant to Russia’s economic condition have been placed in an appendix.
