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Russia's Putin names 4 main problems for economy

Other News Materials 13 June 2006 15:58 (UTC +04:00)

(RIA Novosti) - High inflation, sectoral monopolization, bureaucracy and corruption are the main problems holding back Russia's economy, the president said Tuesday.

Vladimir Putin, speaking at an economic forum in St. Petersburg, said: "Not all the systemic problems in the Russian economy have been solved. I mean [there is] still relatively high inflation, monopolization in a number of sectors, bureaucratic barriers and, unfortunately, corruption."

Nevertheless, Putin said Russia was enjoying a high level of investment thanks to its macroeconomic and political stability, while he added that capital inflow had exceed outflow for the first time in years in 2005, reports Trend.

Russian companies are becoming global market players, investing money in major multinational projects, he said.

"This is not just an indication of domestic companies' competitiveness, but also evidence of their high profitability and their desire to [meet] global standards of governance and transparency," the Russian president said.

People in Russia are aware that the nation will be unable to attain global competitiveness unless it creates a competitive environment domestically, Putin said.

He highlighted new opportunities for doing business in Russia, including special economic zones, and Moscow's willingness to share its expertise with foreign companies interested in starting operations in the country.

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