After weathering years of financial upheaval, Russia has recovered to become one of the ten largest economic powers in the world. It is the third-largest trade partner of the European Union, the fourth-largest trade partner of the Eurozone, and an essential energy supplier to the EU. This impressive recovery has made Russia an economic and political actor that cannot be ignored. This book describes the country’s evolving policy framework and macroeconomic performance, from the difficult days of transition recession and the 1998 financial crisis to the sustained and robust growth since 1999 that is only partially related to the energy price cycle. It examines the improved Russian macro- and microeconomic policy frameworks— in particular the components that impact the country’s fiscal and monetary systems, foreign direct investment, competitiveness, energy sector, social development, and state reform. The study also looks at some of Russia’s remaining reform priorities and provides policy recommendations.