The Handbook represents a comprehensive study of the Russian economy. Written by a team of distinguished Russian and western authors, the chapters analyze the current economic situation, trace the impact of Soviet legacies and of post-Soviet transition, examine social challenges, and propose directions for reforms. The Handbook begins with economic history of Russia, particularly the Soviet period, and then surveys the developments since the breakup of the Soviet Union. The next set of chapters describes Russia’s current institutional environment, including surveys of corporate governance, taxation, the informal sector, and corruption. This is followed by the analysis of economic branches starting with the crucial natural resource sectors and proceeding to the other key sectors such as the military-industrial complex, railroads, research and development, and agriculture. The effect of industry on the environment is also evaluated. While the branches of the “real” sector bear heavy Soviet legacy, the financial and foreign trade sectors analyzed next represent a dramatic departure from the Soviet experience. The last two parts of the Handbook are devoted to regional dimensions and to social policy challenges in labor market, higher education, healthcare, and the demographic situation. While a few chapters reflect positive views on certain aspects of the economy and institutions such as corporate governance and the tax system, most authors stress the seriousness of challenges facing Russia and the necessity but also difficulties of reforms. The analysis and policy proposals in this Handbook will be useful to the readers interested in Russia and to Russia’s policy makers.