Russia's gross domestic product (GDP) growth dwindled to 4.4 percent year-on-year in January, Economy Minister German Gref was quoted as saying by Interfax news agency on Monday. This marks a major slowdown from nearly 8 percent growth seen in the same month in 2004. Growth in the whole of 2004 was 7.1 percent, according to preliminary figures. January "was quite hard for the economy because of the 10 days holiday", Gref said. Russians only returned to work on January 11 after an extended New Year holiday.

President Vladimir Putin is determined to double the size of the economy within a decade - but for that to happen the economy needs to keep expanding by more than 7 percent.

But analysts warn that the high growth rates of recent years are unlikely to be repeated as the key energy sector runs into capacity constraints, while much-needed investors stay away unnerved by the state's assault on oil major Yukos.

The 2005 budget allows for GDP growth of 6.3 percent in the whole year, but a Reuters poll published earlier this month forecast growth at a median 5.5 percent.

Copyright Reuters, 2005