In blow to Putin, Russia slashes long-term growth forecast

Russian President Vladimir Putin (L) speaks with newly appointed Economy Minister Alexei Ulyukayev during their meeting in Novo-Ogaryovo, June 24, 2013. REUTERS/Alexei Nikolskyi/RIA Novosti/Kremlin

MOSCOW (Reuters) - Russia on Thursday acknowledged for the first time that its economy would lag global growth over the next two decades, setting the stage for an era of stagnation that could threaten President Vladimir Putin's grip on power.

Economy Minister Alexei Ulyukayev forecast that Russia's economy would grow at an average rate of 2.5 percent during that period - down from an earlier 4 percent and half the rate Putin targeted before his return to the Kremlin last year.