Russia is run more like a company than a country. That's one of the reasons it clashed with the West so often: the Kremlin doesn't do diplomacy; it does deals.
Take social spending, for example. While birth rates were up in the first quarter by 6% and death rates down by 3%, the number of deaths (486,000) was still slightly ahead of the number of births (450,000), according to the Ministry of Heath and Social Services, so Russia's population declined by 36,000 - a lot less than the million people a year it was losing a decade ago. Still, this means the workforce continues to get older and shrink in size.
MOSCOW BLOG: Russia Inc - BUSINESS NEW EUROPE