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The Russian economy, for the past 69 years, had operated on a centrally-controlled planned economy on various means of production, investment, consumption decisions. The economic policy had a complete base on the principles of the Communist Party, who authoritatively controlling all aspects of economic activity. The real issues like economy dependency on volatile oil and gas prices, downsizing and unreformed monopolies, state still large from an emerging economy, non-exist banking system, corruption-plagued business transactions, and concrete infrastructural reforms such as housing and pension were not dealt in-depth, but a seemingly slow trend towards a pro-market direction in Russia’s economy was evident. The Communist Party had proved its limits with debts, staggering economy and several state revolts leaving the only possibility of progress for Russia economy seemed to be in the transition to capitalism. With communism collapsing at the onset of the 1990s, USSR experienced difficulties in transiting from a fundamentally centrally managed economy to a laissez-faire economy and transiting from communism to capitalism in terms of population, economic potential and an inherent strict centralist system leading to complete disintegration of the USSR in 1991. The transition occurred multi-dimensionally in terms of social, cultural, political and policy areas coupled with a complex psychological and mental process because of its deep-rooted socialist tradition. Russians were thrown into the fathomless pool of market economy. This kind of change was difficult because a great battle was waged against the people's mentality. For example in the communist state guaranteed job with a strong feeling of stability was there while with the State privatization citizens not only had to tend for themselves but also had to find a job.
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