Country Report: Russia.

The article presents the political and economic outlook of Russia as of fiscal year 2006-07. President Vladimir Putin is expected to respect the constitutional ban on a third term in office and to step down in 2008, despite the occasional call from various political constituents for him to remain in power. Although overall stability is unlikely to be seriously threatened by the presidential succession, the choice of a candidate to succeed Putin could lead to some political turbulence as rival factions in the Kremlin compete for influence. Real GDP growth in 2006 will be only marginally slower than in 2005, as high oil prices and an increase in fixed investment offset sluggish output growth in the extractive sector.