Russia operates a mixed, upper-middle-income economy that is deeply reliant on its vast natural resources. It routinely ranks among the world's top ten economies by nominal GDP and even higher by Purchasing Power Parity (PPP). The extraction and export of raw materials, particularly oil and natural gas, form the backbone of federal revenues, making the economy susceptible to global commodity price fluctuations.
The cost of living varies dramatically; Moscow and Saint Petersburg are relatively expensive global metropolises, while life in regional provinces is significantly cheaper but accompanied by lower wages. The median income, while having grown since the chaotic 1990s, remains lower than in Western Europe.
Since 2014, and sharply accelerating in 2022, Russia's economy has been heavily sanctioned by Western nations. This has forced a pivot in trade toward Asia—primarily China and India—and spurred state-led efforts toward "import substitution" to manufacture critical goods domestically. Despite these shocks, the economy has demonstrated resilience, largely sustained by continued energy exports, gold reserves, and heavy state spending on defense and agriculture.