By the end of Civil Russian War about 20 million had died and the economy of Russia and its infrastructures were devastated completely. Following the victory in Civil War, Russian SFSR together with Soviet republics formed Soviet Union in year 1922. Russian Soviet Federation dominated Soviet Union for the entire 69-years and USSR was referred as " Russia " as well as it people as "Russians".

Largest of Republic contributed over the half population of Soviet Union . After the death of Lenin's in 1924, Stalin launched the command economy in rapid industrialization of largely rural country and the collectivization of its economy and agriculture form an agrarian economy to major industrial powerhouse in short span of time.

After and during the disintegration of USSR when the wide ranging reforms including the market and privatization with trade were undertaken, economy of Russia went through major crisis, the that period was characterized by the deep contraction of output having GDP decline by 50% roughly between 1990 and 1995. In 1991 Yeltsin announced International Monetary Fund and United states recommended that country would process with the radical and market-oriented reforms along lines of the "shock therapy" it. Price controls were also abolished and privatization was then started. According to World Bank, about 1.5% of population was living in the poverty in late Soviet era by the mid of 1993.