The OECD report says Russia is vulnerable to rapid inflation and declining competitiveness if it fails to enforce fiscal discipline to managing continued high oil prices.
The survey deemed Russia's recent economic performance as "impressive," with the country experiencing an average of 6.7 percent annual GDP growth between 1999 and 2005.
But the OECD warns that continued strong growth will depend on a sound macroeconomic environment and market-friendly structural reforms. The group urged better reforms to empower citizens and enhance transparency.
It also qualified the expansion of state ownership as a "step back," saying Russia's record as an owner of industrial and financial companies is "poor."
Russia And Global Energy Security
An oil field in Russia's Republic of Bashkortostan (TASS file photo)
ENERGY SECURITY is increasingly moving to the top of the EU's agenda in its dealings the outside world. A recent report identifies the European Union's main energy objectives as not just securing gas and oil deliveries from Russia, but also ensuring that it has reliable alternative sources, including in Central Asia. Nonetheless, EU officials say relations with Russia take center-stage in their thinking....(more)