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. Last Updated: 07/27/2016

OECD Slams Russia's Record

The Organization for Economic Co-Operation and Development, or OECD, rapped Russia on Tuesday for damaging the economy with its assault on oil major Yukos and failing to tackle structural reforms vital to sustain economic growth.

While the economy grew by a strong 7.1 percent in 2004, the intergovernmental organization called the result disappointing and said Russia had underperformed other ex-Soviet countries, which posted growth rates of around 10 percent.

A slowdown in the second half of the year "appears to have resulted from a policy-driven deterioration of the investment climate," the OECD said in its half-yearly Economic Outlook.

"Investment growth overall slowed and capital flight rose sharply amid increasing uncertainty about the security of property rights and other aspects of the business environment."

The OECD criticized delays in power sector liberalization. It said reform of Russia's bureaucracy "appears to have stopped" while tackling Gazprom's dominance of the gas market "stalled even before it really started."