This paper takes a critical look at the challenges and achievements in the reform of the Russian power industry. Russian politics emphasized restructuring and privatization, which are widely seen as preconditions for attracting private investment. However, progress along this line has been slow and there are is little hope that the current deadlock may be overcome anytime soon. This paper argues that the main problems of the sectors originate from the regulatory system, which is why tariff reform is the key issue
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