Accordingly, this paper shall discuss the business environment in Russia with respect to the economy, manufacturing, agriculture, mining and general service sectors. .
Russia, a vast country with a wealth of natural resources, a well-educated population, and a diverse, but declining, industrial .
base, continues to experience formidable difficulties in moving from its old centrally planned economy to a modern market driven economy. New President Putin's government utilized the breather provided by last year's oil price windfall to consolidate and influence regions, media and industry prior to implementation of widespread economic reform. While approximately 75% of industry has now been privatized, the agriculture sector has undergone precious little reform since the break-up of the former Soviet Union. Ironically, last years superior economic performance is undermining the previously successful Russian style of risk-taking with international financial and trade organizations in 2001 . Unfortunately, according to Gregory, stockholder rights remain weak while organized crime and corruption are rampant throughout much of the economy. Additionally, many enterprises continue to operate without hard budget constraints, resulting in barter trade and increased inter-enterprise debt. .
Eight years after the collapse of the Soviet Union, Russia is still struggling to establish a modern market economy and achieve sustainable economic growth. Up until last year, Russian gross domestic product had contracted an estimated 43 percent since 1991, including a 5 percent drop in 1998, despite the county's wealth of natural resources, it's well educated population and it's diverse, although increasingly dilapidated industrial base. By the end of 1997, Russia had achieved some limited progress. Inflation had been brought under control, the ruble was stabilized, and an ambitious privatization program had transferred thousands of enterprises to private ownership.
