section_path: Economy
section_name: Economy
paragraph_text: Economy
  
  Russia has a mixed market economy, following a turbulent transition from the Soviet planned model during the 1990s. Much of the country's economic activity is centered on its abundant and varied natural resources, particularly oil and natural gas. Russia is classified by the World Bank as a high-income country, with the world's ninth-largest economy by nominal GDP and the sixth-largest by PPP; by some measures, its economy ranks fourth or fifth in the world by PPP. Services account for roughly 54% of total GDP, followed by industry (33%), while the agricultural sector is the smallest, at less than 4% of total GDP. Russia has a labour force of roughly 70 million, which is the world's eight-largest, and a low official unemployment rate of 4.1%.
  
  Russia is the world's thirteenth-largest exporter and the 21st-largest importer. It relies heavily on revenues from oil and gas-related taxes and export tariffs, which accounted for 45% of Russia's federal budget revenues in January 2022, and up to 60% of its exports in 2019. Russia has one of the lowest levels of external debt among major economies, and had the fifth-largest foreign exchange reserves, valued at over $601 billion, although half of that is frozen aboard, and a significant amount is believed to have been spent on the Ukrainian war. Inequality of household income and wealth is among the highest among developed countries, and there are considerable regional disparities in economic development.
  
  After over a decade of post-Soviet rapid economic growth, backed by high oil prices and a surge in foreign exchange reserves and investment, Russia's economy was damaged by a wave of international sanctions imposed in 2014 following the Russo-Ukrainian War and annexation of Crimea. In the aftermath of the Russian invasion of Ukraine in 2022, the country has faced revamped sanctions and corporate boycotts, becoming the most sanctioned country in the world, in a move described as an "all-out economic and financial war" to isolate the Russian economy from the Western financial system. Due to the resulting negative impact, the Russian government has stopped publishing a raft of economic data since April 2022. Although Russia has maintained relative economic stability and even growth—driven primarily by high military spending, household consumption, and capital investment—economists suggest the sanctions will have a long-term effect over the Russian economy.