This chapter discusses the Russian economy and its prospects for reform and growth. Russia has pursued a professional and responsible conservative macroeconomic policy since the financial crash of 1998. But Russian economic policy is dominated by oil, gas, and their rents. These circumstances have given rise to the Putin model, a combination of conservative macroeconomic policy and crony and state capitalism. Russia’s economic performance has been mediocre since 2011. Yet, the Kremlin focuses on political and economic stability, with little regard for economic growth. This suboptimal equilibrium appears so strong that a major reform leading to higher economic growth seems unlikely.