OBJECTIVES: In an effort to remedy a highly fragmented system of health care financing, Russia has introduced a series of reforms targeted streamlining public and private funding.  We aimed to understand how the recent reforms have impacted pricing and reimbursement and how this is expected to change in the future. METHODS: We conducted in-depth secondary research through an analysis of Russian health care policies including the new DLO reimbursement programme and the Essential and Most Important Medicines List (EML).  Research was also conducted on the roles of private insurance companies and private out-of-pocket expenses.   Expectation of how these reforms will shape pricing and reimbursement in the future was assessed through a qualitative survey of key payers.  RESULTS: Increases in the percentage of GPD spent on healthcare and the procurement of additional funding have led to a boom in the size of the Russian pharmaceutical market. However, although medicines on the EML are fully reimbursed, coverage does not include drugs for most outpatients, resulting in significant out-of-pocket spending. Private insurers have also failed to produce competition due to lack of incentives and legislation has caused rises in drug pricing. Payers expect that economic growth and increased government spending on healthcare will continue to increase the commercial attractiveness of the Russian pharmaceutical market. However, several competing factors may cause legislative barriers to entry and create a more challenging pricing and reimbursement environment. These concerns arise from a newly imposed price cap on EML medicines, the exclusion of certain drugs from the EML, legislation encouraging domestic growth, and a lack of transparency regarding reimbursement decisions. CONCLUSIONS: New drug pricing regulations and funding will likely create advantages for domestic pharmaceutical companies while potentially decreasing foreign presence by creating a tougher pricing and reimbursement environment.