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Nowadays any analysis of Russian economy is incomplete without taking into account the phenomenon of oligarchy. Russian oligarchs appeared after the fall of the Soviet Union and are represented by wealthy businessmen who control a huge part of natural resources enterprises and have a big political influence. Oligarchs shares in some natural resources industries reach even 7080%. Their role in Russian economy is big without any doubts, however there has been very little economic analysis done. The aim of this work is to examine Russian oligarchy on micro and macro levels, its role in Russias transition and the possible positive and negative outcomes from this phenomenon. For this purpose the work presents two theoretical models and on the basis of the results suggests how government could make the phenomenon of oligarchy to be more beneficial for Russian economy.
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