The modern history of Russia began with the Russian Republic of the Soviet Union gaining more political and economical autonomy amidst the imminent dissolution of the USSR during 1988–1991, proclaiming its sovereignty inside the Union in June 1990, and electing its first President Boris Yeltsin a year later. The Russian SFSR (Soviet Federative Socialist Republic) was the largest republic of the Soviet Union, but it had no significant independence before, being the only Soviet republic to not have its own branch of the Communist Party.

The RSFSR was the largest of the fifteen republics that made up the USSR, accounting for over 60% of its GDP and over 50% of its population. Russians also dominated the Soviet military and the Communist Party. As such, the Russian Federation was widely accepted as the USSR's successor state in diplomatic affairs and it assumed the USSR's permanent membership and veto in the UN Security Council (see Russia and the United Nations).

Prior to the dissolution of the USSR, Yeltsin had been elected President of the RSFSR in June 1991 in the first direct presidential election in Russian history. This ensured that he would be the political leader of the Russian successor state following dissolution. This situation resulted in political turmoil as the Soviet and Russian leadership wrestled for control, which culminated in the 1991 August coup, where the Soviet military attempted to overthrow Mikhail Gorbachev. Although the coup was ultimately averted, this situation contributed to rising instability in the Soviet Union. As the USSR was on the verge of collapse by October 1991, Yeltsin announced that Russia would proceed with radical reforms, including shock therapy policies to introduce capitalism. This caused a sustained economic recession, and GDP per capita levels eventually returned to their 1991 levels by the mid-2000s. Following Yeltsin's resignation in 1999, Russia's politics have since been dominated by Vladimir Putin, serving as either President or Prime Minister. The Russian economy has improved significantly under Putin's leadership.

Reforms
Crisis
Putin era
Relations with the West
See also

Reforms

"Shock therapy"

Russia's GDP by purchasing power parity (PPP) from 1991 to 2019 (in international dollars)

Russian male life expectancy from 1980 to 2007

The programs of liberalization and stabilization were designed by Yeltsin's deputy prime minister Yegor Gaidar, a liberal economist inclined toward radical reform, and widely known as an advocate of "shock therapy". Shock therapy was originally used in Bolivia by notable economist Jeffery Sachs to combat inflation in the 1980s. Having achieved some major successes in Bolivia, shock therapy was then imported to the Polish context following the dissolution of the Soviet Union, and Russia shortly after.

A street flea market in Rostov-on-Don, 1992

The partial results of liberalization (lifting price controls) included worsening of hyperinflation. This resulted in the near bankruptcy of much of Russian industry.

Privatization

Upon the Soviet Union's collapse, the new Russian government was forced to manage the huge state enterprise sector inherited from the Soviet economy. Privatization was carried out by the State Committee for State Property Management of the Russian Federation under Anatoly Chubais with the primary goal being to transform the formerly state-owned enterprises into profit-seeking businesses, which would not be dependent on government subsidies for their survival. To distribute property quickly and to win over popular support, the reformers decided to rely mostly on the mechanism of free voucher privatization, which was earlier implemented in Czechoslovakia.

In 1995, facing severe fiscal deficit and in desperate need of funds for the 1996 presidential elections, the government of Boris Yeltsin adopted a "loans-for-share" scheme proposed by banker Vladimir Potanin and endorsed by Anatoly Chubais, then a deputy prime minister, whereby some of the largest state industrial assets (including state-owned shares in Norilsk Nickel, Yukos, Lukoil, Sibneft, Surgutneftegas, Novolipetsk Steel, and Mechel) were leased through auctions for money lent by commercial banks to the government. The auctions were rigged and lacked competition, being largely controlled by favored insiders with political connections or used for the benefit of the commercial banks themselves. As neither the loans nor the leased enterprises were returned in time, this effectively became a form of selling, or privatizing, state assets at very low prices.

The privatization facilitated the transfer of significant wealth to a relatively small group of business oligarchs and New Russians, particularly natural gas and oil executives.

Obstacles to reform

The former Soviet Union had to deal with a number of unique obstacles during the post-Soviet transition including political reform, economic restructuring and the redrawing of political boundaries. The discomfort associated with these changes was not felt the same in each former Soviet republic. As a general rule, states to Russia's west, such as Poland, Hungary, and the Czech Republic, have fared slightly better than their eastern neighbors since the collapse of the Eastern bloc, while Russia itself and countries to Russia's east experienced greater difficulties and found themselves on worse footing immediately after dissolution. A major reason that Russia's transition has been so wrenching is that it is remaking both its Soviet-era political and economic institutions at once. In addition to institutional reforms designed to create a new political-economic system, Russia was also charged with remaking itself into a new national state following the disintegration of the Soviet Union.

The first major problem facing Russia was the legacy of the Soviet Union's enormous commitment to the Cold War. In the late 1980s, the Soviet Union devoted a quarter of its gross economic output to the defense sector (at the time most Western analysts believed that this figure was 15 percent). At the time, the military-industrial complex employed at least one of every five adults in the Soviet Union. In some regions of Russia, at least half of the workforce was employed in defense plants (the comparable U.S. figures were roughly one-sixteenth of gross national product and about one of every sixteen in the workforce). These over-reliance on the military sector made Russian industry and human capital relatively noncompetitive upon entry into a market-oriented system. Furthermore, the end of the Cold War and the cutback in military spending affected industry quite dramatically making it difficult to quickly retool equipment, retrain workers, and find new markets. In the process of economic re-tooling, an enormous body of experience, qualified specialists and know-how was lost or misallocated, as the plants were sometimes switching from, for example, producing hi-tech military equipment to making kitchen utensils.

A second obstacle, partly related to the sheer vastness and geographical diversity of the Russian landmass, was the sizable number of "mono-industrial" regional economies (regions dominated by a single industrial employer) that Russia inherited from the Soviet Union. The concentration of production in a relatively small number of big state enterprises meant that many local governments were entirely dependent on the economic health of a single employer; when the Soviet Union collapsed and the economic ties between Soviet republics and even regions were severed, the production in the whole country dropped by more than fifty percent. Roughly half of Russia's cities had only one large industrial enterprise, and three fourths had no more than four. Consequently, the decrease in production caused tremendous unemployment and underemployment.

Thirdly, post-Soviet Russia did not inherit a system of state social security and welfare from the USSR. Instead the companies, mainly large industrial firms, were traditionally responsible for a broad range of social welfare functions—building and maintaining housing for their work forces, and managing health, recreational, educational, and similar facilities. The towns in contrast possessed neither the apparatus nor the funds for the provision of basic social services. Industrial employees were left heavily dependent on their firms. Thus, economic transformation created severe problems in maintaining social welfare since local governments were unable to assume finance or operational responsibility for these functions.

Finally, there is a human capital dimension to the failure of post-Soviet reforms in Russia. The former Soviet population was not necessarily uneducated. Literacy was nearly universal, and the educational level of the Soviet population was among the highest in the world with respect to science, engineering, and some technical disciplines, although the Soviets devoted little to what would be described as "liberal arts" in the West. With the move to a post-Communist system, the Russian university system collapsed. Rampant credential inflation in the Russian university system made it difficult for employers to determine who was really skilled and the problems of the higher education system more generally made it difficult to remedy other issues of human capital that came from the transition to a market-oriented system, such as upskilling and re-skilling. For example, former state enterprise managers were highly skilled at coping with the demands on them under the Soviet system of planned production targets, but discouraged the risk-and-reward centered behavior of market capitalism. These managers were responsible for a broad array of social welfare functions for their employees, their families, and the population of the towns and regions where they were located. Profitability and efficiency, however, were generally not the most prominent priorities for Soviet enterprise managers. Thus, almost no Soviet employees or managers had firsthand experience with decision-making in the conditions of a market economy.

Depression

An abandoned radiotelescope facility near Nizhny Novgorod (2006; by 2008 the telescopes had been removed)

After the initial turmoil and euphoria of early marketizations, Russia's economy sank into deep depression by the mid-1990s due to botched reform efforts and low commodity prices globally but not before George H. W. Bush helped Yeltsin with "an unparalleled opportunity to change the nuclear posture of both the United States and the Soviet Union" and to end the Cold War peacefully with the Nunn–Lugar cash-for-weapons scheme, in order to avoid the worst of the dissolution of the vast Soviet technological empire. Russia's economy was hit further by the financial crash of 1998 before experiencing a modest recovery in 1999–2000 as commodity prices began to rise again. According to Russian government statistics, the economic decline was far more severe than the Great Depression was in the United States in terms of gross domestic product.

In 1995, a little over 3% of the work force was officially registered as unemployed, but, in addition to the technically jobless, 4.4% of the labour force were working only part time, while a further 3.9% had been sent on involuntary leave. Also millions of Russians turned up for work each day, but were not paid by the employers. If all these categories of jobless, semi-employed and unpaid workers were taken into account, the 18% Russian unemployment figure cited in June 1995 by labour market expert Tatyana Maleva of the Institute of Economic Analysis seemed real. With unemployment benefits sufficient only to buy a small loaf of bread each day, trying to survive without some other income was not an option for those who lost jobs. They were toiling during the warmer months to grow food in family vegetable plots, selling newspapers or lottery tickets on the streets, busking, or begging.

In 1997, at least 98,400 companies were defaulting on payments to employees. It was estimated that one out of four Russian workers, or close on 20 million people, were not paid for months. Some were paid "in kind": for example, women workers were paid in brassieres and shoes that they resoled in the streets, workers of Moskvich, the auto plant in Moscow, were paid in spare parts, those of the Ivanovo textile plants were paid in bedsheets, and those of the Gus-Khrustalny porcelain factory were paid in crystal and ceramic vases.

By way of a domestic comparison, the post-Soviet economic decline was about half as severe as the economic catastrophe borne out of the immediate consequence of World War I, the fall of Tsarism, and the Russian Civil War.

Russians protest the economic depression caused by the reforms with the banner saying: "Jail the redhead!", 1998.

Following the economic collapse of the early 1990s, Russia suffered from a sharp increase in the rates of poverty and economic inequality. Estimates by the World Bank based on both macroeconomic data and surveys of household incomes and expenditures indicate that whereas 1.5% of the population was living in poverty (defined as income below the equivalent of $25 per month) in the late Soviet era, by mid-1993 between 39% and 49% of the population was living in poverty. Per capita incomes fell by another 15% by 1998, according to government figures.

Public health indicators show a dramatic corresponding decline. Although all post-Soviet countries experience an immediate decline in birth-rates due to economic turmoil this may have been particularly acute in Russia. In 1999, total population fell by about three-quarters of a million people. Meanwhile, life expectancy dropped for men from 64 years in 1990 to 57 years by 1994, while women's dropped from 74 to about 71.

While the opening of the Russian market to imports in the early 1990s meant the nation no longer suffered from the supply shortages of consumer goods that was often characteristic of the USSR (see Consumer goods in the Soviet Union), the relative impoverishment of the Russian people during this time meant only a limited number saw any significant benefit. Russians on fixed incomes (the vast majority of the workforce) saw their purchasing power drastically reduced, so while the stores might have been well stocked in the Yeltsin era, average people could now afford to buy little, if anything from these stores.

Crisis

Constitutional crisis

The struggle for the center of power in Soviet Russia following the collapse of the Soviet Union and for the nature of the economic reforms culminated in a political crisis and bloodshed in the autumn of 1993. Yeltsin, who represented a course of radical privatization, was opposed by the Supreme Soviet. Confronted with opposition to the presidential power of decree and threatened with impeachment, he "dissolved" the parliament on 21 September, in contravention of the existing constitution, and ordered new elections and a referendum on a new constitution. The parliament then declared Yeltsin deposed and appointed Aleksandr Rutskoy acting president on 22 September. Tensions built quickly, and matters came to a head after street riots on 2 – 3 October. On 4 October, Yeltsin ordered Special Forces and elite army units to storm the parliament building, the "White House" as it is called. With tanks thrown against the small-arms fire of the parliamentary defenders, the outcome was not in doubt. Rutskoy, Ruslan Khasbulatov, and the other parliamentary supporters surrendered and were immediately arrested and jailed. The official count was 147 dead, 437 wounded (with several men killed and wounded on the presidential side).

Burned facade of the White House after the storming

Thus the transitional period in post-Soviet Russian politics came to an end. A new constitution was approved by referendum in December 1993. Russia was given a strongly presidential system. Radical privatization went ahead. Although the old parliamentary leaders were released without trial on 26 February 1994, they would not play an open role in politics thereafter.

First Chechen War

A Russian Mil Mi-8 helicopter brought down by Chechen insurgents near Grozny in 1994

In 1994, Yeltsin dispatched 40,000 troops to the southern region of Chechnya to prevent its secession from Russia. Living 1,000 miles (1,600 km) south of Moscow, the predominantly Muslim Chechens for centuries had gloried in defying Russia. Dzhokhar Dudayev, Chechnya's nationalist president, was driven to take his republic out of the Russian Federation, declaring independence in 1991. Gripped by the chaos of the Soviet Union's ongoing dissolution, Chechnya initially operated as a de facto independent nation-though this status was never recognized by Russia. In 1994, the Russian Armed Forces invaded and quickly became submerged in a military quagmire. In January 1995, the Russian army and air force commenced a siege of the Chechen capital of Grozny; about 25,000 Chechen civilians died under week-long air raids and artillery fire in the sealed-off city. Massive use of artillery and air-strikes remained the dominating strategy throughout the Russian campaign. Even so, Chechen forces seized thousands of Russian hostages, while inflicting humiliating losses on the demoralized and ill-equipped Russian troops.

The Russians finally managed to gain control of Grozny by February 1995 after heavy fighting. In August 1996, Yeltsin agreed to a ceasefire with Chechen leaders, and a peace treaty was formally signed in May 1997. However, the conflict resumed in 1999; this time the rebellion was crushed by Vladimir Putin.

Presidential election of 1996

Voter turnout in the first round of the polling on 16 June was 69.8%. According to returns announced on 17 June, Yeltsin won 35% of the vote; Zyuganov won 32%; Aleksandr Lebed, a populist ex-general, a surprisingly high 14.5%; liberal candidate Grigory Yavlinsky 7.4%; far-right nationalist Vladimir Zhirinovsky 5.8%; and former Soviet president Mikhail Gorbachev 0.5%. With no candidate securing an absolute majority, Yeltsin and Zyuganov went into a second round of voting. In the meantime, Yeltsin co-opted a large segment of the electorate by appointing Lebed to the posts of national security adviser and secretary of the Security Council.

In the end, Yeltsin's election tactics paid off. In the run-off on 3 July, with a turnout of 68.9%, Yeltsin won 53.8% of the vote and Zyuganov 40.3%, with the rest (5.9%) voting "against all".

Although Yeltsin promised that he would abandon his unpopular neoliberal austerity policies and increase public spending to help those suffering from the pain of capitalist reforms, within a month of his election, Yeltsin issued a decree canceling almost all of these promises.

Right after the election, Yeltsin's physical health and mental stability were increasingly precarious. Many of his executive functions thus devolved upon a group of advisers.

Financial collapse

The global recession of 1998, which started with the Asian financial crisis in July 1997, exacerbated Russia's continuing economic crisis. Given the ensuing decline in world commodity prices, countries heavily dependent on the export of raw materials such as oil were among those most severely hit. Oil, natural gas, metals, and timber account for more than 80% of Russian exports, leaving the country vulnerable to swings in world prices. Oil is also a major source of government tax revenue which brought significant negative implications for Russia's fiscal situation, foreign exchange stores and ultimately, the value of the ruble.

The pressures on the ruble, reflecting the weakness of the economy, resulted in a disastrous fall in the value of the currency. Massive tax evasion continued and accelerated due to financial instability and decreasing government capacity. This further decreased government revenues and soon, the central government found itself unable to service the massive loans it had accumulated and ultimately was even unable to pay its employees. The government stopped making timely payment of wages, pensions, and debts to suppliers; and when workers were paid, it was often with bartered goods rather than rubles. Coal miners were especially hard hit, and for several weeks in the summer they blocked sections of the Trans-Siberian railroad with protests, effectively cutting the country in two. As time wore on, they added calls for the resignation of Yeltsin in addition to their demands for wages.

A political crisis came to a head in March when Yeltsin suddenly dismissed Prime Minister Viktor Chernomyrdin and his entire cabinet on 23 March. Yeltsin named a virtually unknown technocrat, Energy Minister Sergei Kiriyenko, aged 35, as acting prime minister. Russian observers expressed doubts about Kiriyenko's youth and inexperience. The Duma rejected his nomination twice. Only after a month-long standoff, during which Yeltsin threatened to dissolve the legislature, did the Duma confirm Kiriyenko on a third vote on 24 April.

Kiriyenko appointed a new cabinet strongly committed to stemming the fall in the value of Russia's currency. The oligarchs strongly supported Kiriyenko's efforts to maintain the exchange rate. A high exchange rate meant that they needed fewer rubles to buy imported goods, especially luxury items.

In an effort to prop up the currency and stem the flight of capital, Kiriyenko hiked interest rates to 150% in order to attract buyers for government bonds. But concerns about the financial crisis in Asia and the slump in world oil prices were already prompting investors to withdraw from Russia. By mid-1998, it was clear Russia would need help from IMF to maintain its exchange rate.

The Russian crisis caused alarm in the West. Pouring more money into the Russian economy would not be a long-term solution, but the U.S. in particular feared that Yeltsin's government would not survive a looming financial crisis without IMF help. U.S. President Bill Clinton's treasury secretary, Robert Rubin, also feared that a Russian collapse could create a panic on world money markets (and it indeed did help bring down one major US hedge fund Long-Term Capital Management). The IMF approved a $22.6 billion emergency loan on 13 July.

Despite the bailout, Russia's monthly interest payments still well exceeded its monthly tax revenues. Realizing that this situation was unsustainable, investors continued to flee Russia despite the IMF bailout. Weeks later the financial crisis resumed and the value of the ruble resumed its fall, and the government fell into a self-perpetuating trap. To pay off the interest on the loans it had taken, it needed to raise still more cash, which it did through foreign borrowing. As lenders became increasingly certain that the government could not make good on its obligations, they demanded ever-higher interest rates, deepening the trap. Ultimately the bubble burst.

On 17 August, Kiriyenko's government and the central bank were forced to suspend payment on Russia's foreign debt for 90 days, restructure the nation's entire debt, and devalue the ruble. The ruble went into free fall as Russians sought frantically to buy dollars. Western creditors lost heavily, and a large part of Russia's fledgling banking sector was destroyed, since many banks had substantial dollar borrowings. Foreign investment rushed out of the country, and financial crisis triggered an unprecedented flight of capital from Russia.

Political fallout

The financial collapse produced a political crisis, as Yeltsin, with his domestic support evaporating, had to contend with an emboldened opposition in the parliament. A week later, on 23 August, Yeltsin fired Kiryenko and declared his intention of returning Chernomyrdin to office as the country slipped deeper into economic turmoil. Powerful business interests, fearing another round of reforms that might cause leading concerns to fail, welcomed Kiriyenko's fall, as did the Communists.

Yeltsin, who began to lose his hold as his health deteriorated, wanted Chernomyrdin back, but the legislature refused to give its approval. After the Duma rejected Chernomyrdin's candidacy twice, Yeltsin, his power clearly on the wane, backed down. Instead, he nominated Foreign Minister Yevgeny Primakov, who on 11 September was overwhelmingly approved by the Duma.

Primakov's appointment restored political stability because he was seen as a compromise candidate able to heal the rifts between Russia's quarreling interest groups. There was popular enthusiasm for Primakov as well. Primakov promised to make the payment of wage and pension arrears his government's first priority, and invited members of the leading parliamentary factions into his Cabinet.

Communists and trade unionists staged a nationwide strike on 7 October, and called on President Yeltsin to resign. On 9 October, Russia, which was also suffering from a bad harvest, appealed for international humanitarian aid, including food.

Recovery

Russia bounced back from the August 1998 financial crash with surprising speed. Much of the reason for the recovery is that world oil prices rapidly rose during 1999–2000 (just as falling energy prices on the world market had deepened Russia's financial troubles) so that Russia ran a large trade surplus in 1999 and 2000. Another reason is that domestic industries such as food processing have benefited from the devaluation, which caused a steep increase in the prices of imported goods. Also, since Russia's economy was operating to such a large extent on barter and other non-monetary instruments of exchange, the financial collapse had far less of an impact on many producers than it would had the economy been dependent on a banking system. Finally, the economy has been helped by an infusion of cash; as enterprises were able to pay off arrears in back wages and taxes, it, in turn, allowed consumer demand for the goods and services of Russian industry to rise. For the first time in many years, unemployment in 2000 fell as enterprises added workers.

Nevertheless, the political and social equilibrium of the country remains tenuous to this day, and power remains a highly personalized commodity. The economy remains vulnerable to downturn if, for instance, world oil prices fall at a dramatic pace.

Succession crisis

Yevgeny Primakov did not remain in his post long. Yeltsin grew suspicious that Primakov was gaining in strength and popularity and dismissed him in May 1999, after only eight months in office. Yeltsin then named Sergei Stepashin, who had formerly been head of the FSB (the successor agency to the KGB) and later been Interior Minister, to replace him. The Duma confirmed his appointment on the first ballot by a wide margin.

Stepashin's tenure was even shorter than Primakov's. In August 1999, Yeltsin once again abruptly dismissed the government and named Vladimir Putin as his candidate to head the new government. Like Stepashin, Putin had a background in the secret police, having made his career in the foreign intelligence service and later as head of the FSB. Yeltsin went so far as to declare that he saw Putin as his successor as president. The Duma narrowly voted to confirm Putin.

When appointed, Putin was a relatively unknown politician, but he quickly established himself both in public opinion and in Yeltsin's estimation as a trusted head of government, largely due to the Second Chechen War. Just days after Yeltsin named Putin as a candidate for prime minister, Chechen forces engaged the Russian army in Dagestan, a Russian autonomy near Chechnya. In the next month, several hundred people died in apartment building bombings in Moscow and other cities, bombings Russian authorities attributed to Chechen rebels. In response, the Russian army entered Chechnya in late September 1999, starting the Second Chechen War. The Russian public at the time, angry over the terrorist bombings, widely supported the war. The support translated into growing popularity for Putin, who had taken decisive action in Chechnya.

After the success of political forces close to Putin in the December 1999 parliamentary elections, Yeltsin evidently felt confident enough in Putin that he resigned from the presidency on 31 December, six months before his term was due to expire. This made Putin acting president and gave Putin ample opportunity to position himself as the frontrunner for the Russian presidential election held on 26 March 2000, which he won. In February 2000, Russian troops entered Grozny, the Chechen capital, and a week before the election, Putin flew to Chechnya on a fighter jet, claiming victory.

Putin era

Vladimir Putin (circa 2007)

Putin came into office at an ideal time: after the devaluation of the ruble in 1998, which boosted demand for domestic goods, and while world oil prices were rising. Indeed, during the seven years of his presidency, real GDP grew on average 6.7% a year, average income increased 11% annually in real terms, and a consistently positive balance of the federal budget enabled the government to cut 70% of the external debt (according to the Institute for Complex Strategic Studies).

Vladimir Putin with Junichiro Koizumi, Jacques Chirac, Gerhard Schröder, Silvio Berlusconi, George W. Bush and other state leaders in Moscow, 9 May 2005

On 14 March 2004, Putin was elected to the presidency for a second term, receiving 71% of the vote.

In 2005, the National Priority Projects were launched to improve Russia's health care, education, housing and agriculture.

Putin with Chancellor of Germany Angela Merkel in March 2008

Putin was barred from a third term by the Constitution of Russia. First Deputy Prime Minister Dmitry Medvedev was elected his successor.

Putin with Dmitry Medvedev, March 2008

A destroyed Georgian tank in Tskhinvali, August 2008

In 2008, Kosovo's declaration of independence saw a marked deterioration in Russia's relationship with the West. It also saw South Ossetia war against Georgia, that followed Georgia's attempt to take over the breakaway region of South Ossetia. Russian troops entered South Ossetia and forced Georgian troops back, establishing their control on this territory. In the fall of 2008, Russia unilaterally recognized the independence of South Ossetia and Abkhazia.

Putin has said that overcoming the consequences of the world economic crisis was one of the two main achievements of his second Premiership. The other was the stabilizing the size of Russia's population between 2008 and 2011 following a long period of demographic collapse that began in the 1990s.

"Northern Valley" housing estate under construction in Saint Petersburg, 2010

At the United Russia Congress in Moscow on 24 September 2011, Medvedev officially proposed that Putin stand for the Presidency in March 2012, an offer Putin accepted.

On 4 March 2012, Putin won the 2012 Russian presidential elections in the first round, with 63.6% of the vote.

Anti-Putin protesters march in Moscow, 4 February 2012

Relations with the West

U.S. President George W. Bush and Putin at the 33rd G8 summit, June 2007

In the early period after Russia became independent, Russian foreign policy repudiated Marxism–Leninism as a putative guide to action, emphasizing cooperation with the West in solving regional and global problems, and soliciting economic and humanitarian aid from the West in support of internal economic reforms.

However, although Russia's leaders now described the West as its natural ally, they grappled with defining new relations with the East European states, the new states formed upon the disintegration of Yugoslavia, and Eastern Europe. Russia opposed the expansion of NATO into the former Soviet bloc nations of the Czech Republic, Poland, and Hungary in 1997 and, particularly, the second NATO expansion into Bulgaria, Estonia, Latvia, Lithuania, Romania, Slovakia and Slovenia in 2004. In 1999, Russia opposed the NATO bombing of Yugoslavia for more than two months (see Kosovo War), but later joined NATO peace-keeping forces in the Balkans in June 1999.

Relations with the West have also been stained by Russia's relationship with Belarus. Belarusian President Alexander Lukashenko, an authoritarian leader, has shown no interest in implementing Western-backed economic and political reforms and has aligned his country with Russia, and no interest in deepening ties with NATO. A union agreement between Russia and Belarus was formed on 2 April 1996. The agreement was tightened, becoming the Union of Russia and Belarus on 3 April 1997. Further strengthening of the union occurred on 25 December 1998, and in 1999.

Under Putin, Russia has sought to strengthen ties with the People's Republic of China by signing the Treaty of Good-Neighborliness and Friendly Cooperation as well building the Trans-Siberian oil pipeline geared toward growing Chinese energy needs. He also made a number of appearances in the media with President of the United States George W. Bush in which the two described each other as "friends".

History of the Russian Federation facts for kids

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