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14. Read the text about the government and politics in Russia and answer the questions after it:

Pic. 40. Entrance to the Kremlin Senate, part of the Moscow Kremlin and

the working residence of the Russian president

According to the Constitution, which was adopted by national referendum on 12 December 1993 following the 1993 Russian constitutional crisis, Russia is a federation and formally a semi-presidential republic, wherein the President is the head of the state and the Prime Minister is the head of the government. The Russian Federation is fundamentally structured as a representative democracy. Executive power is exercised by the government. Legislative power is vested in the two chambers of the Federal Assembly. The government is regulated by a system of checks and balances defined by the Constitution of the Russian Federation, which serves as the country's supreme legal document and as a social contract for the people of the Russian Federation.

Pic. 41. The White House, the seat of the Russian Government

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The federal government is composed of three branches:

Legislative: The bicameral Federal Assembly, made up of the State Duma and the Federation Council adopts federal law, declares war, approves treaties, has the power of the purse, and has power of impeachment, by which it can remove the President.

Executive: The president is the commander-in-chief of the military, can veto legislative bills before they become law, and appoints the Cabinet and other officers, who administer and enforce federal laws and policies.

Judiciary: The Constitutional Court, Supreme Court, Supreme Court of Arbitration and lower federal courts, whose judges are appointed by the Federation Council on the recommendation of the president, interpret laws and can overturn laws they deem unconstitutional.

Pic. 42. Prime Minister Vladimir Putin

and President Dmitry Medvedev

The president is elected by popular vote for a four-year term]; election last held 2 March 2008. The national legislature is the Federal Assembly, which consists of two chambers; the 450-member State Duma and the 176member Federation Council. Leading political parties in Russia include United Russia, the Communist Party, the Liberal Democratic Party of Russia and Fair Russia.

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1)When was the Russian constitutional crisis?

2)When was the Constitution adopted according to which Russia is a federation?

3)What is the head of the state?

4)What is the head of the government?

5)What branches does the federal government comprise?

6)What do these branches consist of?

15.Using your answers tell about the government and politics in Rus-

sia.

16.In pairs discuss the problem of presidential term extending to a six-year term. Imagine you are one of the Duma’s members. One of you agrees with this idea, and another disagrees. Prove your ideas.

17.Look at the word economics. Write your associations with this word.

ex.

E n e r g y

C O N O

M o n e y

I

C

S

18. Match the words with their definitions.

1)consumption;

2)currency;

3)energy;

4)industry;

5)investment;

6)money;

7)nuclear power;

8)office;

9)oil;

10)outlook;

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11)regrowth;

12)supply.

a)the resurgence of an industry, economy, etc;

b)a source of power;

c)the official currency, in the form of banknotes, coins, etc;

d)a metal or paper medium of exchange that is in current use in a particular country;

e)a room or set of rooms in which business, professional duties, clerical work, etc;

f)power, especially electrical or motive, produced by a nuclear reactor

g)another name for petroleum;

h)organized economic activity concerned with manufacture, extraction and processing of raw materials, or construction;

i)expenditure on goods and services for final personal use;

j)the act of investing money;

k)willingness and ability to offer goods and services for sale;

l)view or prospect.

19.Using the dictionary find the definitions to your own associations to the word “economics”.

20.Read and translate the text below about Russia’s economy.

21.Discuss with your partner if the modern economic situation in Russia is on the rise. Use your associations. Prove your ideas with the facts from the text you have read.

Pic. 43. Regional product per capita as of 2006 (darker is higher)

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Economy

Since the turn of the century, rising oil prices, increased foreign investment, higher domestic consumption and greater political stability have bolstered economic growth in Russia. In 2007, Russia's GDP was $2.076 trillion (est. PPP), the 6th largest in the world, with GDP growing 8.1% from the previous year. Growth was primarily driven by non-traded services and goods for the domestic market, as opposed to oil or mineral extraction and exports. The average salary in Russia was $640 per month in early 2008, up from $80 in 2000. Approximately 14% of Russians lived below the national poverty line in 2007, significantly down from 40% in 1998 at the worst of the post-Soviet collapse. Unemployment in Russia was at 6% in 2007, down from about 12.4% in 1999.

Pic. 44. A Rosneft petrol station. Russia is the world's leading natural gas exporter and the second leading oil exporter

Pic. 45. Soyuz TMA-2 moves to launch pad, about to carry the first resident crew to the International Space Station

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Russia has the world's largest natural gas reserves, the second largest coal reserves and the eighth largest oil reserves. It is the world's leading natural gas exporter and the second leading oil exporter. Oil, natural gas, metals, and timber account for more than 80% of Russian exports abroad. Since 2003, however, exports of natural resources started decreasing in economic importance as the internal market strengthened considerably. Despite higher energy prices, oil and gas only contribute to 5.7% of Russia's GDP and the government predicts this will drop to 3.7% by 2011. The state-run gas monopoly Gazprom is the world’s largest producer and exporter, and supplies a growing share of Europe’s needs. Russia is also considered well ahead of most other resource-rich countries in its economic development, with a long tradition of education, science, and industry. The country has more higher education graduates than any other country in Europe.

The federal budget has run surpluses since 2001 and ended 2007 with a surplus of 6% of GDP. Over the past several years, Russia has used oil revenues from its Stabilization Fund of the Russian Federation to prepay all Soviet-era sovereign debt to Paris Club creditors and the IMF. Oil export earnings have allowed Russia to increase its foreign reserves from $12 billion in 1999 to $597.3 billion on 1 August 2008, the third largest reserves in the world. The country has also been able to substantially reduce its formerly massive foreign debt.

The economic development of the country though has been uneven geographically with the Moscow region contributing a disproportionately high amount of the country's GDP. Much of Russia, especially indigenous and rural communities in Siberia, lags significantly behind. Nevertheless, the middle class has grown from just 8 million persons in 2000 to 55 million persons in 2006. Russia is home to the largest number of billionaires in the world after the United States, gaining 50 billionaires in 2007 for a total of 110.

Over the last five years, fixed capital investments have averaged real gains greater than 10% per year and personal incomes have achieved real gains more than 12% per year. During this time, poverty has declined steadily and the middle class has continued to expand. Russia has also improved its international financial position since the 1998 financial crisis. A principal factor in Russia's growth has been the combination of strong growth in productivity, real wages, and consumption. The upward trend

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continued in the first quarter of 2008, driven largely by rising food costs. Infrastructure, ageing and inadequate after years of being neglected, is considered to be a bottleneck to economic growth. The government has said $1 trillion will be invested in infrastructure by 2020.

During Putin's eight years in office, industry grew by 75%, investments increased by 125%, and agricultural production and construction increased as well. Real incomes more than doubled and the average salary increased eightfold from $80 to $640. The volume of consumer credit between 2000–2006 increased 45 times, and during that same time period, the middle class grew from 8 million to 55 million, an increase of 7 times. The number of people living below the poverty line also decreased from 30% in 2000 to 14% in 2008.

Arms sales have increased to the point where Russia is first in the world in sale of weapons, the IT industry has recorded a record year of growth concentrating on high end niches like algorithm design and microelectronics; Russia is now the world's third biggest destination for outsourcing software behind India and China. The space launch industry is now the world's second largest behind Arian Space of Europe and nuclear power plant companies are going from strength to strength, selling plants to China and India, and recently signed a joint venture with Toshiba to develop cutting edge power plants. Russia is experiencing a regrowth of Electronics. Among Russia's biggest television sets producers is Rolsen.

The large majority of Russia's exports are made up by raw materials and fertilizers, although exports as a whole accounted for only 8.7% of the GDP in 2007, compared to 20% in 2000.

The mineral-packed Ural Mountains and the vast oil, gas, coal, and timber reserves of Siberia and the Russian Far East make Russia rich in natural resources. However, most such resources are located in remote and climatically unfavorable areas that are difficult to develop and far from Russian ports. Oil and gas exports continue to be the main source of hard currency. Russia is a leading producer and exporter of minerals, gold, and all major fuels. The Russian fishing industry is the world's fourth-largest, behind Japan, the United States, and China. Natural resources, especially energy, dominate Russian exports. Ninety percent of Russian exports to the United States are minerals or other raw materials.

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Russia comprises roughly three-quarters of the territory of the former Soviet Union but has relatively little area suited for agriculture because of its arid climate and inconsistent rainfall. Northern areas concentrate mainly on livestock, and the southern parts and western Siberia produce grain. Restructuring of former state farms has been an extremely slow process. The new land code passed by the Duma in 2002 should speed restructuring and attract new domestic investment to Russian agriculture. Private farms and garden plots of individuals account for over one-half of all agricultural production.

22.Match the beginnings of the sentences with their endings.

1.Since the turn of the century, rising oil prices, increased foreign investment, higher domestic consumption and …

2.Growth was primarily driven by non-traded services and goods for the

...

3.Oil, natural gas, metals, and timber account for …

4.Russia has also improved its international financial position since …

5.A principal factor in Russia's growth has been the combination of …

6.Arms sales have increased to the point where …

7.However, most such resources are located in remote and climatically unfavorable areas that are …

8.The new land code passed by the Duma in 2002 should speed restructuring and …

a)more than 80% of Russian exports abroad.

b)greater political stability have bolstered economic growth in Russia.

c)strong growth in productivity, real wages, and consumption.

d)difficult to develop and far from Russian ports.

e)domestic market, as opposed to oil or mineral extraction and exports.

f)the 1998 financial crisis.

g)Russia is first in the world in sale of weapons.

h)attract new domestic investment to Russian agriculture.

23.Read the text again and draw up the plan.

24.Tell about the development of Russia’s economy using your own plan.

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production facilities – производственное оборудование; proliferation – распространение;

stockpile – запас, резерв;

volatile – неустойчивый, непостоянный, изменчивый.

Foreign relations and military

The Russian Federation has a permanent seat on the UN Security Council, membership in other international organizations, the rights and obligations under international treaties and property and debts. Russia has a multifaceted foreign policy. It maintains diplomatic relations with 178 countries and has 140 embassies. Russia's foreign policy is determined by the President and implemented by the Ministry of Foreign Affairs.

As one of five permanent members of the UN Security Council, Russia plays a major role in maintaining international peace and security, and plays a major role in resolving international conflicts by participating in the Quartet on the Middle East, the Six-party talks with North Korea, promoting the resolution of the Kosovo conflict and resolving nuclear proliferation issues. Russia is a member of the Group of Eight (G8) industrialized nations, the Council of Europe, OSCE and APEC. Russia usually takes a leading role in regional organizations such as the CIS, EurAsEC, CSTO, and the SCO. Former President Vladimir Putin had advocated a strategic partnership with close integration in various dimensions including establishment of four common spaces between Russia and the EU. Since the collapse of the Soviet Union, Russia has developed a friendlier, albeit volatile relationship with NATO. The NATORussia Council was established in 2002 to work together as equal partners to pursue opportunities for joint collaboration.

Pic. 46. Russian paratroopers at an exercise in Kazakhstan

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