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Strong economic growth until 2008 led to a reduction in official absolute poverty rates since the beginning of the new millennium. The financial crisis has interrupted the downward trend but it has not led to a poverty rebound. However, large income inequalities
remain in the Russian Federation. Poverty risks are highest among children. The social support system in the Russian Federation is not geared towards the working‐age population who, if not physically or mentally impaired, are widely held to be undeserving of
social support. In addition, the redistributive power of the social protection system is limited. Social benefits are badly targeted and social security contributions are paid on income up to about 1.5 times average earnings in 2010.