This is the 1316th most frequent Russian word.
состоит
"Состоит" means "consists of."
Here, 'состоит' is used to denote the composition or structure of an object, indicating the parts that form the whole.
Книга состоит из нескольких глав.
The book consists of several chapters.
In this sentence, 'состоит' describes the phases as components of the entire project, reflecting its structure.
Проект состоит из двух этапов.
The project consists of two phases.
Here, 'состоит' is applied to express the makeup of a group, specifying its members.