Russia has slipped 10 places in a World Bank league table on how easy it is to do business around the globe. The report ranks Russia 106th out of 178 countries, slipping behind China for the first time.

The report looked for reforms that reduced hassle for business and legal barriers to trade.  According to the report, it was easier to do business in Russia last year.

Compared to the BRIC economies, Russia lags behind its key emerging-market rival China for the first time.

Simen Djankov, the lead author of the report, says that although Russia has seen significant improvement in the business environment in the last few years, there are still plenty of areas needing reform.

“One problem is in the area of business licences. This is the area that all of the transition economies shared from their past. It is difficult to obtain business licences. Multiple areas of bureaucracy and many different agencies are involved. You need to go and ask for the same documents at several different places as the rules are not clear. And Russia still exemplifies this trend,” said Mr Djankov.