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One of the main negative trends of the last decade in Russia has been an unprecedented rise in the numbers of the poor. The economic crisis has entailed an almost two‐fold drop in average incomes, modernisation of income distribution has led to an unprecedented increase of income inequality, and the Soviet system of social benefits and privileges oriented to supporting the wealthiest groups has remained in place. The result has been a surge in the poverty rate. This article outlines major issues to be addressed in developing a poverty alleviation policy for Russia. They can be broadly summarised as follows: Only comprehensive and consistent consideration of these issues will allow a strategy of poverty rate reduction to be formulated.

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