The Russian FederationThe Russian FederationEconomy and PoliticsEconomy and Politics

Russian EconomyRussian Economy

• Controlled by government directly or through Controlled by government directly or through oligarchsoligarchs

• Commodities marketCommodities market

• Natural resources include- oil, gas, metals, Natural resources include- oil, gas, metals, coal, timbercoal, timber

• Recession particularly detrimental due to Recession particularly detrimental due to decline in price of commoditiesdecline in price of commodities

• Indicative by RTS stock market index down Indicative by RTS stock market index down 54%- 50 stocks54%- 50 stocks

Natural Gas ReservesNatural Gas Reserves

Foreign businessForeign business

• Payless shoes under franchise with AlshayaPayless shoes under franchise with Alshaya

• Stores to open in coming yearStores to open in coming year

• Gap/ Banana Republic franchise with SibaGap/ Banana Republic franchise with Siba

• 15% projected growth rate15% projected growth rate

Recent NewsRecent News

• AvtoVaz- Russia’s largest carmanufacturer AvtoVaz- Russia’s largest carmanufacturer lays off 27% of workforce due to decline in lays off 27% of workforce due to decline in demanddemand

• Cut workers’ incomes and reduced working Cut workers’ incomes and reduced working weekweek

• Owned in part by RenaultOwned in part by Renault

Conflict with GeorgiaConflict with Georgia

• Region of South Ossetia seceded from GeorgiaRegion of South Ossetia seceded from Georgia

• Russia supported secession Russia supported secession

• New leadership in Georgia emphasized New leadership in Georgia emphasized unificationunification

• Russian army invades GeorgiaRussian army invades Georgia

• Medvedev has foreign authority yet appears as Medvedev has foreign authority yet appears as though Putin was directing warthough Putin was directing war

• http://www.nytimes.com/2008/08/09/world/http://www.nytimes.com/2008/08/09/world/europe/09georgia.html?_r=1&pagewanted=2europe/09georgia.html?_r=1&pagewanted=2

Conflict With GeorgiaConflict With Georgia

Current EventsCurrent Events

• Putin vs MedvedevPutin vs Medvedev

• The Arctic Sea IncidentThe Arctic Sea Incident

• Missile-Defense SystemMissile-Defense System

Putin vs. MedvedevPutin vs. Medvedev

• Medvedev has spent most of career loyal to Medvedev has spent most of career loyal to PutinPutin• Obtained office of president through loyaltyObtained office of president through loyalty• Continues to follow Putin’s doctrineContinues to follow Putin’s doctrine

• Putin has essentially declared that he will be Putin has essentially declared that he will be running for president in 2012 instead of running for president in 2012 instead of incumbent Medvedevincumbent Medvedev• Medvedev is legally allowed a second termMedvedev is legally allowed a second term

Putin Vs. MedvedevPutin Vs. Medvedev

Arctic Sea IncidentArctic Sea Incident

• MV Arctic Sea – Maltan cargo vessel with a MV Arctic Sea – Maltan cargo vessel with a Russian crew that was reported missing in Russian crew that was reported missing in late Julylate July

• Boarded by hijackers off the coast of SwedenBoarded by hijackers off the coast of Sweden• Was rediscovered August 17Was rediscovered August 17thth near the coast of near the coast of

Cape VerdeCape Verde• Reason for hijacking unknown, but widely Reason for hijacking unknown, but widely

circulated theory holds that Mossad hired circulated theory holds that Mossad hired Russian gangsters to hijack ship and prevent Russian gangsters to hijack ship and prevent sale of anti-aircraft and cruise missiles to Iransale of anti-aircraft and cruise missiles to Iran

Arctic Sea IncidentArctic Sea Incident

Missile-Defense SystemMissile-Defense System

• Obama canceled plans for missile-defense Obama canceled plans for missile-defense system in Eastern Europesystem in Eastern Europe• Seen by critics as capitulating to Russian threatsSeen by critics as capitulating to Russian threats

• Redesigned system would not require land-Redesigned system would not require land-based defenses until 2015 at leastbased defenses until 2015 at least

• Obama administration is careful to emphasize Obama administration is careful to emphasize that no deals were made with Russia that no deals were made with Russia

Missile-Defense SystemMissile-Defense System

Fun FactFun Fact

• Vladimir Putin likes to ride horses. Shirtless.Vladimir Putin likes to ride horses. Shirtless.