Of the 63,000 multinational corporations in the world in 2006 (Lodge and Wilson, 2006), a relatively small, but increasingly visible number were from Russia. This was despite the country having ranked only 62nd out of 125 countries on the 2006–2007 Global Competitiveness Index (World Economic Forum, 2006). Russia's ranking fell from 53rd in 2005 due in large part to the increasingly pervasive role of the state in the economy. Still, the importance of these large multinationals is underscored by the fact that SMEs in Russia accounted for only 12 percent of the country's GDP in 2006 (Fallico, 2007). The future competitiveness of these MNEs, however, will depend substantially on continued positive developments in the Russian economy in which they play so important a part. And it is clear that their competitiveness will also be determined in large part by the role that the government plays in the economy. Since virtually all important Russian MNEs are in the natural resources area, when applying dominant theoretical ideas from the international business literature an examination of the vertical downstream integration strategies pursued by these companies, with their high asset specificity and attendant uncertainties such as price and supply, will be key. This concept is discussed more fully later, in a section on corporate growth strategies. We begin with an overview of the Russian economy, including the strong points and potential weaknesses, such as “the Dutch Disease,” which derive from its energy-driven character.