Putin warns his business leaders

RUSSIAN President Vladimir Putin has rapped his country's business leaders - currently meeting in London - for failing to improve living standards. 'The favourable international environment has not been used to change the material situation of Russians,' he said. 'To guarantee a decent standard of living for the population, for Russia to remain an important member of the international community, our economy must grow at a faster rate.'

His words, also aimed at his economic ministers, came as almost all Russian business luminaries were in London for the fifth annual Russian economic forum.

But Russia is again flavour of the month among international investors, said forum spokesman Simon Joseph. 'There is political stability, domestic production and international trade are up and there has been significant progress in tax and other legislative reform.'

While Putin remains unhappy at the speed of growth, two major developments this week point to renewed faith in the Russian economy.

BP increased its stake in oil producer Sidanco from 10% to 25% in a $380m (£264m) deal while Ikea unveiled details of Russia's largest retail mall in Moscow - MEGA - with two kilometres of shops. The vast, $200m development has attracted French giant Auchan as well as major names such as Reebok and Tommy Hilfiger. 'MEGA is a vivid demonstration of our firm belief in the Russian market,' said Anders Binnmyr, deputy general director of Ikea-Russia.