In this note, using the VEC model we attempt to empirically investigate the effects of oil price and monetary shocks on the Russian economy covering the period between 1997:Q1 and 2007:Q4. The analysis leads to the finding that a 1% increase in oil prices contributes to real GDP growth by 0.25% over the next 12 quarters, whereas that to inflation by 0.36% over the corresponding periods. We also find that the monetary shock through interest rate channel immediately affects real GDP and inflation as predicted by theory.