A pharmaceutical plant opens in St Petersburg's Noidorf special economic zone in September 2013 (photo:dpa)

Russia on the brink: an economic growth model in need of a redesign

Russia’s economic model is exhausted. The country can no longer rely on its economy growing on the back of rising oil prices, warn analysts. Problems that Russia could once afford to ignore will now come to the fore unless the government undertakes structural reforms to increase investment and unlock higher economic growth rates.

<i>Russia is in need of a new model for economic growth. Outside observers emphasise a need to diversify away from dependence on hydrocarbons. But energy is the only sector where the Russian economy has genuine comparative advantage. A healthy strategy for modernisation would entail a wager on the energy sector, ranging from increased investment and tec...

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Professor Stefan Hedlund
The rise of Rosneft could signal the emergence of new rules of the game, with the promotion of strategic alliances with global energy majors and with more room for independent domestic producers
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