the Russian planned economy had been exhausted and stagnated (OECD, EBRD et al. 1990; Nove 1992; Easterly and Fisher 1995; EBRD 1999; Spulberg 2003). The deterioration of the command economy started in the 1980s and gradually led to the economic collapse,which contributed to political changes in the country (Silverman and Yanowitch 2000).