Russia is being warned that the country’s future economic growth is likely to be hampered by a poor business environment, a lack of investment in innovation and heavy dependence on oil and gas sales.
That warning comes from the Organisation for Economic Co-operation and Development in its annual report on the state of the Russian economy.
Speaking in Moscow, OECD Secretary General Angel Gurria said: “The business environment in Russia leaves a lot to be desired and here we can do a lot of work to improve it. There are questions of governance, there are questions of lack of transparency, in some cases of corruption and then, the question of the rule of law.”
The OECD says the Kremlin needs to cut the dependence of public finances on oil revenues as it is increasingly vulnerable to a correction in crude prices.
It thinks Russia should limit public spending and reform pensions and recommends modernising the economy through energy efficiency and improved productivity. It and estimates GDP growth will be 4.1 percent next year and in 2013.