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Russia - Essay Example

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Similar to other numerous states globally, the inception of Russia was as a result of migrating people who upon coming together established into strong empire. In earlier, Russia comprised of cities that with time became an empire inhabited by Eastern Slavs and Finno-Ugric…
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Download file to see previous pages This is due to the challenges people encountered during communism, which made numerous people end up trusting more their families based on the support they received like combining their resources to survive. Hence, currently people seem to prefer trusting more close families. From then to date the state has significantly grown especially with the inception of Russian Federation, which emerged after the cessation of Soviet Union. This growth has been attributed to exclusively reliance on resources especially oil and gas (whose reserves are in Western Siberia), hence giving the state unequaled power not only economically but also politically in the region. For instance, 2/3 of the state’s oil and gas export head to the European Union region thus comprising 24% of the Russia’s GDP. Oil and gas transportation is merely by pipelines as well as physical tanks by respective firms. The economy of Russian federation has been through immense progress, which has always had many setbacks. Due to rising energy prices and the radiant global economy, the country has benefited greatly and been through higher growth rates before 2008’s great recession (Hanouz & Prazdnichnykh 3). The Western sanction issues during 2014 invasion into Ukraine have also been a contributing factor. During these years, the country faced not only price drops but also low demands and financial sector almost collapsing. Despite all these, the government countered its issues and challenges mainly through stimulus spending. The country has not really grown at the same pace as its competitor despite the availability of many resources as well as educated population but this also as a long term goal, shows the potential Russia has to compete with the super powers.
Since the crumpling of Soviet Union, Russia has been changing notably from a centrally planned and globally isolated economy to a more of globally integrated and market based economy. In 1900s during their economic reformations, most of ...Download file to see next pagesRead More
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