Part 622

Legal system: based on civil law system; judicial review of legislative acts

Suffrage: 18 years of age; universal

Executive branch: chief of state: President Boris Nikolayevich YEL'TSIN (since 12 June 1991) was elected for a five-year term by universal suffrage under the constitution of 12 December 1993, but subsequent presidents, beginning with the 16 June 1996 election, will serve a four-year term; election last held 12 June 1991 (next to be held 16 June 1996); results - percent of vote NA; note - no vice president; if the president dies in office, cannot exercise his powers because of ill health, is impeached, or resigns, the premier succeeds him; the premier serves as acting president until a new presidential election is held, which must be within three months head of government: Premier and Chairman of the Russian Federation Government Viktor Stepanovich CHERNOMYRDIN (since 14 December 1992), First Deputy Premiers and First Deputy Chairmen of the Government Oleg SOSKOVETS (since 30 April 1993) and Vladimir KADANNIKOV (since 25 January 1996) were appointed by the president on approval of the Dumas Security Council: originally established as a presidential advisory body in June 1991, but restructured in March 1992, with responsibility for managing individual and state security Presidential Administration: drafts presidential edicts and provides staff and policy support to the entire executive branch cabinet: Ministries of the Government or "Government" was appointed by the president Group of Assistants: schedules president's appointments, processes presidential edicts and other official documents, and houses the president's press service and primary speechwriters Council of Heads of Republics: includes the leaders of the 21 ethnic-based Republics Council of Heads of Administrations: includes the leaders of the 66 autonomous territories and regions, and the mayors of Moscow and St. Petersburg Presidential Council: prepares policy papers for the president

Legislative branch: bicameral Federal Assembly Federation Council: 178 seats, filled ex-officio by the top executive and legislative officials in each of the 89 federal administrative units (oblasts, krays, republics, autonomous okrugs and oblasts, and the cities of Moscow and St. Petersburg) State Duma: elections last held 17 December 1995 (next to be held NA December 1999); results - percent of vote received by parties clearing the 5% threshold entitling them to a proportional share of the 225 party list seats: Communist Party of the Russian Federation 22.3%, Liberal Democratic Party of Russia 11.2%, Our Home Is Russia 10.1%, Yabloko Bloc 6.9%; seats - (450 total - half elected in single-member districts and half elected from national party lists) Communist Party of the Russian Federation 157, Independents 78, Our Home Is Russia 55, Liberal Democratic Party of Russia 51, Yabloko Bloc 45, Agrarian Party of Russia 20, Russia's Democratic Choice 9, Power To the People 9, Congress of Russian Communities 5, Forward, Russia! 3, Women of Russia 3, other parties 15

Judicial branch: Constitutional Court, judges are appointed by the Federation Council on recommendation of the president; Supreme Court (highest court for criminal, civil, and administrative cases), judges are appointed by the Federation Council on recommendation of the president; Superior Court of Arbitration (highest court that resolves economic disputes), judges are appointed by the Federation Council on recommendation of the president

Political parties and leaders: pro-market democrats: Our Home Is Russia, Viktor CHERNOMYRDIN; Yabloko Bloc, Grigoriy YAVLINSKIY; Russia's Democratic Choice Party, Yegor GAYDAR; Forward, Russia!, Boris FEDOROV centrists/special interest parties: Congress of Russian Communities, Yuriy SKOKOV; Women of Russia, Alevtina FEDULOVA and Yekaterina LAKHOVA anti-market and/or ultranationalist parties: Communist Party of the Russian Federation, Gennadiy ZYUGANOV; Liberal Democratic Party of Russia, Vladimir ZHIRINOVSKIY; Agrarian Party, Mikhail LAPSHIN; Power To the People, Nikolay RYZHKOV and Sergey BABURIN; Russian Communist Workers' Party, Viktor ANPILOV and Viktor TYULKIN note: some 269 political parties, blocs, and associations tried to gather enough signatures to run slates of candidates in the 17 December 1995 Duma elections; 43 succeeded

Other political or pressure groups: NA

International organization participation: BSEC, CBSS, CCC, CE, CERN (observer), CIS, EBRD, ECE, ESCAP, IAEA, IBRD, ICAO, ICRM, IDA, IFC, IFRCS, ILO, IMF, IMO, Inmarset, Intelsat, Interpol, IOC, IOM (observer), ISO, ITU, MINURSO, MTCR, NACC, NSG, OAS (observer), OSCE, PCA, PFP, UN, UN Security Council, UNAMIR, UNAVEM III, UNCRO, UNCTAD, UNESCO, UNHCR, UNIDO, UNIKOM, UNITAR, UNMIH, UNOMIG, UNPREDEP, UNPROFOR, UNTSO, UPU, WHO, WIPO, WMO, WToO, WTrO (applicant), ZC

Diplomatic representation in US: chief of mission: Ambassador Yuliy Mikhaylovich VORONTSOV chancery: 2650 Wisconsin Avenue NW, Washington, DC 20007 telephone: (202) 298-5700 through 5704 FAX: (202) 298-5735 consulate(s) general: New York, San Francisco, and Seattle

US diplomatic representation: chief of mission: Ambassador Thomas R. PICKERING embassy: Novinskiy Bul'var 19/23, Moscow mailing address: APO AE 09721 telephone: (095) 252-24-51 through 59 FAX: (095) 956-42-61 consulate(s) general: St. Petersburg, Vladivostok, Yekaterinburg

Flag: three equal horizontal bands of white (top), blue, and red

Economy -------

Economic overview: Russia, a vast country with a wealth of natural resources, a well-educated population, and a diverse industrial base, continues to experience formidable difficulties in moving from its old centrally planned economy to a modern-market economy. The break-up of the USSR into 15 successor states in late 1991 destroyed major economic links that have been only partially replaced. As a result of these dislocations and the failure of the government to implement a rigorous and consistent reform program, output in Russia has dropped by one-third since 1990 (instead of the one-half previously estimated). On the one hand, President YEL'TSIN's government has made substantial strides in converting to a market economy since launching its economic reform program in January 1992 by freeing nearly all prices, slashing defense spending, eliminating the old centralized distribution system, completing an ambitious voucher privatization program in 1994, establishing private financial institutions, and decentralizing foreign trade. On the other hand, Russia has made little progress in a number of key areas that are needed to provide a solid foundation for the transition to a market economy; and the strong showing of the communists and nationalists in the Duma elections in December 1995 casts a shadow over prospects for further reforms. In 1995, the new cash privatization program went slower than planned. The state claims that the nonstate sector produced approximately 70% of GDP in 1995, up from 62% in 1994, although these figures apparently include many enterprises that have only nominally moved out of state control. Moscow has been slow to develop the legal framework necessary to fully support a market economy and to encourage foreign investment. Stockholder rights remain ill-defined and the Duma has yet to adopt a land code that would allow development of land markets as sources of needed capital. Russia's securities market remains largely unregulated and suffers from the lack of a comprehensive securities law. In addition, Moscow has yet to develop a social safety net that would allow faster restructuring by relieving enterprises of the burden of providing social benefits for their workers. Most rank-and-file Russians perceive they are worse off because of growing crime and health problems, the drop in real wages, the great rise in wage arrears, and the widespread threat of unemployment. The number of Russians living below the official poverty level rose by 10% to 36.6 million people, or 25% of the population. The decline in output slowed during 1995, and some sectors showed signs of a turnaround; analysts forecast the resumption of growth in 1996 - at a low rate. Russian official data, which fail to capture a considerable portion of private sector output and employment, show that GDP declined by 4% in 1995, as compared with a 15% decline in 1994. Despite continued declines in agricultural and industrial production, unemployment climbed only slowly to about 8% of the work force by yearend because government policies aimed at softening the impact of reforms have created incentives for enterprises to keep workers on the rolls even as production slowed to a crawl. Moscow renewed tightened financial policies in early 1995 and succeeded in reducing monthly consumer price inflation from 18% in January to about 3% in December, the lowest monthly rate since the beginning of reform. According to official trade statistics, Russia ran a $19.9 billion trade surplus for 1995, up from $15.9 billion in 1994. It continued to shift its trade away from the other former Soviet republics toward the West, with the CIS countries' share of Russian trade falling to 22% in 1995. Russia made good progress with official and commercial creditors in 1995 in resolving the issue of its $105 billion in Soviet-era debts. When completed, these Paris Club and London Club rescheduling agreements will reduce Russia's repayment liabilities from $20 billion to less than $5 billion annually through the end of the decade. Capital flight reportedly continued to be a problem in 1995, with billions of additional dollars in assets being moved abroad, primarily to bank accounts in Europe.

GDP: purchasing power parity - $796 billion (1995 estimate as extrapolated from World Bank estimate for 1994)

GDP real growth rate: -4% (1995 est.)

GDP per capita: $5,300 (1995 est.)

GDP composition by sector: agriculture: 6% industry: 41% services: 53%

Inflation rate (consumer prices): 7% monthly average (1995 est.)

Labor force: 85 million (1993) by occupation: production and economic services 83.9%, government 16.1%

Unemployment rate: 8.2% (December 1995) with considerable additional underemployment

Budget: revenues: $NA expenditures: $NA, including capital expenditures of $NA

Industries: complete range of mining and extractive industries producing coal, oil, gas, chemicals, and metals; all forms of machine building from rolling mills to high-performance aircraft and space vehicles; shipbuilding; road and rail transportation equipment; communications equipment; agricultural machinery, tractors, and construction equipment; electric power generating and transmitting equipment; medical and scientific instruments; consumer durables, textiles, foodstuffs, handicrafts

Industrial production growth rate: -3% (1995 est.)

Electricity: capacity: 213,100,000 kW production: 876 billion kWh consumption per capita: 5,800 kWh (1994)

Agriculture: grain, sugar beets, sunflower seed, vegetables, fruits (because of its northern location does not grow citrus, cotton, tea, and other warm climate products); meat, milk

Illicit drugs: illicit cultivator of cannabis and opium poppy; mostly for domestic consumption; government has active eradication program; used as transshipment point for Asian and Latin American illicit drugs to Western Europe and Latin America

Exports: $77.8 billion (f.o.b., 1995) commodities: petroleum and petroleum products, natural gas, wood and wood products, metals, chemicals, and a wide variety of civilian and military manufactures partners: Europe, North America, Japan, Third World countries, Cuba

Imports: $57.9 billion (c.i.f., 1995) commodities: machinery and equipment, consumer goods, medicines, meat, grain, sugar, semifinished metal products partners: Europe, North America, Japan, Third World countries, Cuba