One way Vladimir Putin has retained his popularity among Russians has been by increasing retirement pensions and other social benefits, and as a result the state pension fund is deep in the red. But as Andrey Zaostrovtsev finds, Putin is more interested in keeping voters sweet than balancing the books (photo: RIA Novosti Agency).

Owning a business in Russia today is a hazardous affair: each year thousands of companies close after their owners are accused of ‘economic crimes’ and face either prison or protection payments to government officials. Andrey Zaostrovtsev describes a system reminiscent of an equally lawless period in Russia’s past (photo: RIA Novosti Agency).

Privatisation was one of the beacon words of Yeltsin’s presidency, but, with the possible exception of housing, there has been no development of private property or attendant protected rights. Property in Russia still belongs to a small clique of top dogs and woe betide anyone who gets across them. How can Russia ever become prosperous or civilised? Andrei Zaostrovtsev despairs.

International economic indicators suggest that Russia’s problems are not those of the developing world. Relatively speaking, its people are not poor. But its economy is just not free