In the formative process of a market economy since the collapse of the Soviet Union, the significance of the oil and gas sector in Russia has greatly increased. The sector has driven the whole economy upwards, especially during th e restoration period after the 1998 economic crisis. The importance of natural resources for the Russian economy may be self-evident, at least in the short run. According to experiences in many mineral-abundant countries, however, the endowment of rich oil and gas reserves could be a curse in disguise for the economy from the perspective of long-range development. Russia will have to cope with the difficulties which arise due to the existence of abundant mineral resources.
