Key developments and challenges

The Russian economy has not been immune to the impact of the eurozone crisis. Both external and domestic demand growth slowed down in 2012, driven by the weaker global environment and lower investor and consumer confidence.

Price stability has become a top priority. Inflation started rising again after reaching a record historical low rate of 3.6 per cent in early 2012, but the authorities have confirmed commitments to inflation targeting and a floating rouble.

Russia joined the World Trade Organization (WTO) in August 2012. After 18 years of negotiations, the terms of accession were agreed at a Ministerial Conference in Geneva in December 2011 and ratified by the Russian parliament in July 2012.