Russia is the biggest country of the world in terms of its area but it is at the 9th position in terms of its population. Russia has suffered the economic recession badly and now it has recovered its economic stability but with the stimulus packages and the export growth of the government, it has recovered its economic situation in 2010 and 2011. Petroleum, iron and steel are the main industries and it exports most of its products to other countries of the world.

Political Factors

Russia faced bad political and economic turmoil after being defeated in Afghanistan and the economy was shattered. It had to work hard to attain the financial stability and its political government had to make some tough decisions to retain its political stability. The present government is stable and they have political system according to their convention and situation. Russia is now a federation but there is still involvement in main government and local governments. Human Rights Watch reports that citizens do not have freedom but their judicial system is strong. This country has maintained its open foreign relationship strategy and they have relationships with 191 countries and 144 embassies. This country has maintained its nuclear strategy and it has played important role in preserving peace and safety across the world (UK Essays, 2015).

Corruption perception Index shows their report that there is high rate of corruption in the country and there is not political freedom in the country. Mr. Putin had been the president of the country for long time and after that he became Prime Minister of the country. This country did not enjoy good relationships with its neighbors (Lucintel, 2013).

Economical Factors

Russia is gaining economic strength in the region and it is expected that it will reach to $3.18 trillion by 2018. The corruption leaves bad impact on the economy of the country. Investors show their concerns on making investment in the country. The spread of the big crimes including robbery and murder affects its economy and it reflects the risk of the internal security of the country. It has skilled and solid workforce, which are adept in their relevant works. It has sufficient resources, which contribute in making the economy strong (Lucintel, 2013).

Russia has big resources of natural oil and gas and it is at the 10th position in terms of its GDP. It has the biggest agricultural area and it grows more crops, and most of it is exported to Europe and Asia. The economy of the country is not compared with other European countries as its economy depends on the price of the natural oil in the global markets. The government has to make the conventional budget to cope with the prices of the natural oil in the market. The government has maintained its effective tax system and the monetary policy (UK Essays, 2015).

Social Factors

After the economic recession in 1990, the society converted from democratic structure of aristocratic structure and it created difference between rich and poor. The capitalist system creates the mindset, which waste the money in buying expensive cars, outfits and other necessities of life and this was done in Russia. They did not have plan for family system and rate of birth was decreased considerably while the death rate was increased due to increasing in HIV and alcohol poisoning. The social activities and the entertainment were developed and it improves the living standard of the people. They love music, ballet dance with composers, artists and philosophers and literature is common in Russian society (UK Essays, 2015).

Income inequality between the poor and middle class is very wide. The difference between 10% richest people and 10% poorest people in Moscow was over 42 times in 2008 but this difference was 38.6 times in 2015. The government introduced the anti-crisis measures but it did not have cuts in social spending instead of severe economic crisis in 2009 (Datamonitor, 2009).

Technological Factors

Russia is the leading country in space science and technology and it sent first man in space. Russia has paid more attention on advanced technology like Rosnano and Nanotechnology. It has made developments in different fields like IT technology and also made significant improvement in their living standard (Rafath Begum, 2015).

Russia has made good progress and significant contribution in fields like Chemistry, Mathematics, earth science, and aerospace engineer and they have developed the technology of the country. They also contributed in military materials and weapons and it has great role in the world to maintain peace and security (UK Essays, 2015).

Environmental Factors

The government has developed the effective security system to reduce the pollution and controls the man-made environmental disasters. The government has made the basic policies to control the environment and implemented the decisions pertaining to environment safety consistently. It has contributed in the effective system for the safety and prevention of ecological system in Russia (Datamonitor, 2009).

The current government has taken the steps to make the legislation to ensure safety and security of the environment. It has controlled the carbon emission through its industries, as it has good infrastructure of iron and steel industry and it has made considerable progress in these industries. People are well educated and they have the awareness about the protection the environment. The government has adhered the policy of protection of environment. It also controls the noise pollution and water pollution in spite of their oil and gas resources in the country. 

Legal Factors

The judicial system of the country is strong and people can contact with court with great confidence in case of any mishap or crime. The current government has introduced new legal reforms in the country and they can bring improvement in the judicial system of the country. This country has introduced various legal assistance programs with many countries to solve the domestic and international legal issues (Datamonitor, 2009).

The corruption rate is high in the country and the government needs to make new laws to control the corruption and introduce new legislation and reforms in the country so that they can attract the investors. When the laws will be enforced in the country, then there will be no difference between the national and international investors (Rafath Begum, 2015).

References

UK Essays (2015), History and Pestel Analysis of Russia Economics Essay, available at https://www.ukessays.com/essays/economics/history-and-pestel-analysis-of-russia-economics-essay.php
Rafath Begum (2015), Pestel Analysis of Russia, available at http://www.slideshare.net/rafathbegum75/pestel-analysis-of-russia
Datamonitor (2009), In-Depth PESTEL Insights, available at https://www.scribd.com/doc/225910741/Pestel-Analysis-of-Russia
Lucintel (2013), PESTEL Analysis of Russia 2013, available at http://www.researchandmarkets.com/reports/2627327/pestle_analysis_of_russia_2013

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