Growth year-on-year was 7.5 per cent in the second quarter, forex reserves are the world's third largest, there is a huge oil-fuelled trade surplus, and almost $200bn is stashed away in sovereign wealth funds.
Russia is also one of Europe's largest markets, which is driving the expansion of consumer industries and services, moving it on from being a purely industrial and export-focused economy, based on commodities, to becoming a post-industrial one.
But chronic problems remain. Inflation is running at 15 per cent, far higher than the western average.
More importantly, despite comparatively low international debt levels, Russia remains disproportionately dependent on foreign investment for its long-term debt and equity capital. That would not be such a problem if the increasingly authoritarian Kremlin did not continue to do scary, unpredictable things.
The collapse of the stock market, of course, is largely the result of factors beyond Russia's control. But the steep falls were exacerbated by what continues to bedevil the country's development: fear of arbitrary and capricious decisions that grips investors, prevents long-term commitments and leaves everyone hedging their bets.
The August war in the Caucasus spooked investors. It also, for many, underlines how utterly unpredictable Russia remains. It came a mere two weeks after the chairman of oil company TNK-BP, Robert Dudley, fled the country, alleging official harassment.
It also followed comments by Vladimir Putin, the prime minister, criticising the steel and coal producer Mechel, alleging price fixing, which sent the stock tumbling.
As a result, foreigners withdrew billions of dollars from the Russian economy in August. Bankers say official estimates of $5bn in capital flight are too low and the real figure is more likely to have been $15bn-$25bn for the month. The jitters of foreign investors would not be such a factor in Russia's development if they did not play such a critical role in a country where there are few sources of domestic long-term capital.
"The Achilles heel of Russia is the debt market, which has not yet been able to mobilise domestic capital. Nearly half of all debt, and almost all longer-term debt, is sourced from abroad," a recent strategy presentation by Moscow's Troika Dialog investment bank stated. "The reluctance of foreign investors to provide debt capital therefore has a disproportionate impact on the cost of debt."
The departure of foreign investors in August caused a cash shortage that drove down stock prices, as brokers began making margin calls, and a vicious cycle - the classic stock market squeeze - ensued.
Meanwhile, the falling oil price further panicked investors, as Russia's long-term fiscal health is uniquely dependent on that commodity.
Alexei Kudrin, the finance minister, said on September 16 that the federal budget would begin to run a deficit if oil fell below $70 a barrel. The creation of a reserve fund, which totals $143bn and is set to kick in if the price of oil falls further, is intended to smooth some of the bumps in the volatile commodity-dependent economy.
Inflation, at a 15 per cent annual rate, is high, but could certainly be higher given Russia's huge oil windfall. The fact that it has stayed within limits is largely due to successful policies by the government, which resisted political pressure to spend excess oil revenues and, instead, created the reserve fund, a sovereign wealth fund.
"Had all this money flowed into the economy, it would have caused phenomenal inflation, so the stabilisation fund has been a great success," says Richard Hainsworth, of GR Global Rating, a credit-rating agency.
Not only have reserves and surplus oil funds helped fight inflation, they have also given the government an impressive war chest to mitigate the financial panic.
Dmitry Medvedev, the president, promised roughly $20bn in budget funds to intervene in the stock market by buying shares, and tens of billions of dollars worth of budget funds were lent to insolvent banks. State bank VEB made $50bn in loans available to Russian companies struggling to roll over foreign currency debt.
As a result, Russia is in a relatively strong position to weather the credit crisis. It has hoards of cash, and its banking system - while still vulnerable - is not as large relative to the rest of the economy as in western countries.
But interest rates for second - and third-tier borrowers continue to be extremely high, and could cost Russia at least a point or two of growth this year. The volatility of the stock and credit markets points to an immature market coping with one of the biggest challenges it has faced.
Charles Clover