Transport and communications are exceptionally important to Russia with its vast expanses. The country's railways account for 77% of national freight turnover and more than 48% of passenger transportation. In the extremely difficult circumstances of the transition period, railway transport has retained its workability.

There are more than 150,000 transportation enterprises in Russia. The share of non-state enterprises in passenger transportation exceeds 10 per cent in motor transportation, 25 per cent in air transport, and 60 per cent in river transportation. Motor and railway ground transportation account for 75 per cent of all cargo transport and 80 per cent of passenger transport. Water transport, including river and sea shipping, is welldeveloped in Russia.

As for air transportation in the process of privatization, the former state-owned airline Aeroflot has broken into 400 small airlines (in which Aerofiot still holds majority shares).

The postal service accounts for one-third of the total volume of communication services and one-half of employees in the telecommunications sector. More than 50,000 post offices offer postal services, and 70 towns receive international mail. The share of the mail service within communications is falling, however, its the shares of telephone and fax communications are growing. Non state enterprises accounted for 40 per cent of the total volume of communicaton services.

Telephone communications exist in all the large cities of the former USSR, and with cities all over the world. One of the most rapidly developing areas of telecommunications is cellular phone systems. A number of major international companies operate cellular systems, particularly in Moscow and StPetersburg. Telephone communication, while improving, remains a serious problem in Russia.

Russia has available modern means of electronic communication such as electronic mail, teletext, telefax, datafax, bureaufax, and teleautograf. Among informational networks available to computer users are Sprint, FIDO, Relcom, Glasnet, CompuServe, SovamTeleport.