Fitch's forecast remained positive due to a strong government's bookkeeping balance, flexible currency exchange rate and lower inflation, Fitch's chief analyst Ed Parker said.

　　Still, Russia's deficiencies have been infrastructure shortcomings, an unfavorable business climate, high levels of corruption, and belated fiscal measures that make the country dependent on oil price volatility, said the report obtained by the Interfax news agency.

　　Fitch assessed the Russian economy's 3.7-percent growth in the second quarter of 2011 as "balanced, though not strong."

　　It forecast Russia's gross domestic product (GDP) to reach 4.2 percent by the end of 2011 thanks to higher-than-expected oil prices, a good harvest and a rise in domestic consumption.

　　The federal budget's deficit by the end of 2011 would fall to 1.2 percent of GDP compared with 4 percent in 2010, Fitch said.

　　Fitch also said it did not expect Russian political strategy and economic policy would dramatically change after the parliamentary and presidential elections due in the next six months.

　　Fitch's report came two days after Standard & Poor's confirmed Russia's sovereign credit ratings.

　　According to S&P, Russia's long-term foreign currency sovereign rating remains at BBB level, and the short-term rating at A-3 level.