ABSTRACT

By 1991, the situation in the Soviet Union was characterized by the undermined confidence in the authorities, which rapidly aggravated, as their inability to cope with the economic, social and national problems became increasingly apparent. Privatization process began in 1992, after the liberalization of prices, i.e. in the conditions of inflation and price leaps, with the so-called small privatization, that is, the privatization of trade and services establishments and enterprises producing cooperative goods. From 1996 on, the Russian government was mainly concerned with the task of ensuring the stability of the ruble rate at any cost, that is by outside borrowing and through monetary policy towards the country's industry. The ruble devaluation after August 1998, and shortly after, the sharp increase of oil prices in the world markets were used to advantage by the new Russian government to revive and boost the Russian economy. As a result, the post-crisis economic indices in Russia were mostly positive.