President Vladimir Putin's economic adviser has warned that Russia is jeopardising its economic growth by drifting away from liberal market reforms and moving towards increased state intervention.

In an interview with the Financial Times, Andrei Illarionov said the effects of high oil prices were masking the damage done by poor economic policy over the past three years. He also criticised the government for allowing the controversy surrounding Yukos, the oil company, to escalate, and warned of “dire consequences” for the company.