Huge natural resources, in particular hydrocarbons, precious metals, fuel, timber.

Potential from future international oil pipelines.

Enormous engineering and scientific base.

Massive arms export industry: worlds largest in 2002.

Government revenue increased by tax reforms.

The Foreign Office is telling companies looking to invest in Russia that there is now more evidence of risks faced by outside investors.

Crumbling infrastructure.

Attempts by government to exert control over commercial sector, particularly oil.

Privatized companies asset-stripped by former managers

Organized crime controls huge areas of the economy.