Ownership & Allocation of Production Factors in Russia

Russia operates a mixed economy with a distinctive ownership structure:

Ownership

• Natural resources (oil, gas, minerals, timber): State-owned; exploitation licensed to state corporations (Rosneft, Gazprom) and private firms.
• Labor: Privately supplied; highly educated workforce concentrated in services, then industry, then agriculture.
• Capital: Mostly private, but state controls strategic sectors (banking, defense, nuclear, transport) via state-owned enterprises and sovereign wealth funds.

Resource Allocation

• Market mechanisms dominate labor and capital allocation (wages, interest rates, equity markets).
• State planning directs natural-resource extraction, infrastructure investment, and defense procurement through federal programs and state-corporation mandates.

This hybrid model aims to combine market efficiency with strategic sovereignty, though corruption and bureaucratic discretion often distort outcomes.