The chief economist at the European Bank for Reconstruction and Development described Russia Thursday as having come to a crossroads where it must choose between a state economy or one driven by the market. "I think there is a real pause. People are waiting to see what is the next step for reform and organisation for Russia," Willem Buiter said.
The country could move toward "greater state capitalism, which is a possibility, with strategic sectors being selected and favoured or ... a decentralised market economy where the government is not a significant owner and manager of the economic resources," the EBRD economist said.
"It's unclear for the market what the intentions are for the moment."
In the past year, a shake-up in the energy sector - believed to be orchestrated by the Kremlin - has been under way and is expected to result in the break-up of leading Russian oil producer Yukos and the reinforcement of state-controlled gas giant Gazprom, which is seeking to diversify its activities in electricity and oil.
Buiter nonetheless underlined the strength of Russian economic growth, which the EBRD has forecast at 6.9 percent this year, pointing to "an overall robustness of growth for four years in a row."