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  • Oil and gas in the capitals


    Jacques Sapir, Contributing Editor, FSU

    Since 2003-2004, the post-Soviet Russian economic model seems to have stabilized. From the wild, oligarch-dominated kleptocracy of the mid-1990s, something new has appeared and consolidated, which is quite consistent with political changes emphasizing a strong and partly authoritarian state. Its emphasis on state intervention makes it easy to label a “move back to Soviet times.” This would be wrong not just because the current situation is far removed from the actual Soviet system, but also because the new economic model results not from any kind of political nostalgia for Soviet times, but directly from what happened in the ’90s under Boris Yeltsin. Large, integrated companies are prominent in the new Russian model. Not only has the government favored the development of very large enterprises like Gazprom, Rosneft and Transneft in the energy sector and RusAl, Severstal, Renova and Uralmash in heavy industry, but state influence-open or covert-is a decisive factor in industrial development.

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