Under Gorbachev, the Russian economy experienced heavy difficulties in terms of production of goods, agriculture and pricing. Soon after he won the elections in June 1991, Boris Eltsine started the implementation of economic reforms regarding liberalization, monetary and taxes policies, the development of foreign exchange and entrepreneurship.

The transition introduced competition and transparency but to an unsufficient extent. Crime and corruption remained strong and reforms have provided an opportunity for illegal activities.

Even though life conditions of Russian people had been far from perfect during this political regime, the situation was much worse right after.