Russian President Dmitry Medvedev and US President Barack Obama after signing the New START agreement
In June 1991, Boris Yeltsin was elected as the first president in Russian history when he became President of the Russian Soviet Federative Socialist Republic which became the Russian Federation in December of that year. During and after the dissolution of the Soviet Union, major reforms were undertaken including privatization and free trade, including radical changes such as those recommended by the United States and the International Monetary Fund. All of this led to an extraordinary economic crisis, marked by a 50% decline in GDP and industrial output between 1990 and 1995.
This privatization shifted most of the control of various companies from state agencies to individuals with connections to the government. Many newly rich billionaires move their funds overseas, thus fleeing massive capital.
The economic depression led to a loss of social services; the birth rate fell dramatically while the death rate increased significantly. Millions of people fell into poverty, the percentage rose from 1.5% in the late Soviet era to 39–49% in mid-1993. In the 1990s corruption was rampant and there were many criminal gangs and crime.
Russia was responsible for taking over the Soviet Union’s foreign debt, even though its population was only half that of the pre-Soviet Union. The high budget deficit led to the 1998 Russian financial crisis and GDP fell further.
Boris Yeltsin with Vladimir Putin and Patriarch Alexy II
On December 31, 1999, President Yeltsin abruptly resigned and handed over his post to the newly elected Prime Minister, Vladimir Putin, who went on to win the 2000 presidential election. Putin suppressed the Chechen rebellion although sporadic violence persisted in the North Caucasus. High oil prices and a weak exchange rate coupled with rising domestic demand, consumption and investment helped the economy grow for the 9th year in a row, raising living standards and Russia’s influence on the world stage.
However, the world economic crisis that started in 2008 and falling oil prices caused the country’s economy to stagnate again and the poverty rate to rise again. Many reforms were carried out during Putin’s presidency, but he was criticized by Western countries as not
democratic. Nonetheless, Putin’s leadership brought stability and progress to the country for which he is widely admired in Russia.
On March 2, 2008, Dmitry Medvedev was elected President while Putin became Prime Minister. Putin returned to the presidency in the 2012 presidential election and Medvedev was appointed Prime Minister.
In 2014, after Ukrainian President Viktor Yanukovych fled the revolution, Putin requested and obtained the right from the Russian parliament to deploy Russian troops in Ukraine. After the 2014 Crimean referendum in which many residents favored a split, but was not recognized internationally, Russian leaders announced Crimea’s entry into the Russian Federation. On 27 March, the UN General Assembly held a vote in favor of a non-binding resolution against the annexation of Crimea by 100 votes in favour, 11 against, and 58 absent.
In September 2015, Russia began its military intervention in the Syrian Civil War, consisting of airstrikes against the Islamic State militant group, Jabhat al-Nusra, and the Army of Conquest.
