ABSTRACT
This chapter provides an account of what might be called the Russian economy in Estonia. The Russian economy has an independent significance in Estonia’s privatization process in that the Russian sector derived from the Soviet system carried great weight in Estonia’s total economy, and in that the Russian sector in one form must be assumed to play a continuous role after privatization was carried through. The new forms have been shaped within the frames of privatization and consist partly of private enterprises, and the Russian economy continues to exist under the conditions of market economy. In public administration and service a displacement of employment among Russians took place, but the displacement was not caused by privatization. Concerning the organization of Russian economic activities in Estonia it can be pointed out that Russian entrepreneurs in Estonian have established a ‘club’ with about 100 members who all take leading positions in the business life in Estonia.
