Just 20 years ago the only places where you could hear the word “business” were in the English classes. Private labor activity was punishable. Everything changed with the start of Perestroyka. This uneasy period was characterized by the appearance of numerous cooperative societies (small business units) that were making money by all imaginable means – from sewing jeans to selling diamonds abroad. Most of these companies went bankrupt pretty quickly, but there were ones that were getting an enormous super profit. Most of modern Russian oligarchs were starting their business in such cooperatives. The time went by, Russian business was blossoming. However in 1998, the Russian economy was struck by an unprecendented crisis: the GDP decreased, stock markets were collapsing one by one, and the default lead to the 45% devaluation of Russian ruble. Nevertheless, today – 8 years after the crisis – the Russian economy is doing quite alright and growing with the speed that the fastest-developing countries can only dream of.

It should be noticed, though, that the problems of the Russian economy of the 1990’s caused a significant decrease in the oil prices – less than $12 for a barrel. This fact alone lets us make the following conclusion: the latest changes are the result of raw materials’ price growth. Back from the Soviet times, the Russian economy was always based on the exploitation of mineral entrails.

Among the major Russian companies are, as usual, the largest enterprises representing Russian fuel and energy complex - “GazProm”, “LUKOIL” “Russian EEC”, etc., ferrous and non-ferrous metallurgy, transport monopolist “Russan railways”, and “TransNeft”.

The biggest Russian company – State gas monopoly “GazProm” earned 1.38 trillion rubles in 2005. “GazProm” delivers to Germany 1/3 of all of their energy supply and supplies Europe with 1/4 of all the imported gas. Just imagine it: 80% of German gas comes from Russia! The leading consumers of Russian gas are Germany, Italy, Turkey, and France.

The second biggest Russian company, “LUKOIL”, plays the key role in the economy of Russia. It possesses 18% of all the oil extracted in Russia, 1.3% of world’s oil reserves, and 2.1% of all the oil extracted worldwide. “LUKOIL” is the enterprise whose stocks in 2005 were selling better than any other foreign company at the London stock market.

Apart from the fact that Russia possesses the biggest mineral reserves in the world and exports a lot of gas and oil, it also is one of the world’s leading steel exporters (10% of the world’s export). “Severstal”, Novolipetsk, and Magnitogorsk metallurgical plants are Russian metallurgical giants. Besides, mechanical engineering is also developing very quickly in Russia.

Oil riches give Russia an advantage over its rivals today. However, the politicians have to carry out structural reforms to help the Russian economy move on. President Putin is planning to use the profits from oil and gas sales to modernize the economy. The results of the “Leading Industrial Companies of Russia” rating already show the significant growth of mechanical engineering. Today this branch of Russian industry is developing faster than any other – even the ones belonging to the fuel and energy complex.