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Russia one of toughest countries for business-report

Published 07/07/2009, 11:45 AM
Updated 07/07/2009, 11:49 AM

MOSCOW, July 7 (Reuters) - Russia ranked as one of the most closed economies in the world in a report issued on Tuesday that coincided with U.S. President Barack Obama's visit to Moscow which sought to boost trade and investment ties.

"In all categories, the need for improvement is huge," the World Economic Forum study of 121 countries said about Russia's performance when compared with the administrative systems, market rules and transport infrastructure elsewhere.

The Global Enabling Trade Report was issued on the day Obama called for the full economic potential between the United States and Russia to be tapped.

Russia, the world's physically largest country, ranked 109th overall in the report, behind Burkina Faso and Syria.

"Executives have little trust in the government and doubt about its ability to enforce law and order," the report said.

The United States was ranked in 16th place overall, while Singapore, Hong Kong and Switzerland occupied the top three positions.

The WEF said Russia's restricted market access and complex import tariff structures were factors for its poor ranking.

Across 13 separate categories, Russia's best position was in 56th spot for its transport and communications infrastructure. It ranked in 113th place for market access.

Obama's speeches also hinted at the problems with red tape and rule of law in Russia that the WEF report identified as key challenges to the development of the economy. (Reporting by Conor Sweeney; Editing by Sophie Hares)

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