Russia is in the process of one of the most ambitious electricity reform programs ever undertaken. The reform is crucial for Russia, with the potential to modernize and transform the sector into a key driver of longer-term economic growth and prosperity. In 2005, the IEA published a study documenting the proposed reform and highlighting some potential implementation issues. Achievements to date have been impressive by international standards, however the outcome remains uncertain. Electricity reform is entering another critical phase in Russia. The 2013 Update examines the key remaining challenges affecting the development of competitive wholesale and retail electricity markets in Russia including: market structure, market design, pricing, investment and related regulation. The report draws extensively on the experience of IEA member countries and on views expressed during consultations with key Russian stakeholders.