Russia’s economy is buoyant but there remain many improvements to be made to the banking system.

Russia’s state-owned retail giant Sberbank issued its first Eurobond last month. The bank is the first to cash in on ratings agency Moody’s surprise decision to award a two-notch upgrade to the sovereign rating – taking Russia into investment grade territory.

Competition is heating up among Russia’s banks and foreign players for a slice of the growing retail banking and mortgage lending markets that are catering for the new middle class. Anthony Robinson reports from Moscow.