Official: Russia could use monopolies’ resources more efficiently

SOCHI, Oct 2 (PRIME) -- Funds and resources of Russia’s largest monopolies, including gas giant Gazprom and Russian Railways, could be used much more efficiently, and the government decreases potential for innovations by stimulating largest companies, the Federal Antimonopoly Service’s Director Igor Artemyev said Friday during the Sochi investment forum.

“The first thing that has to be changed regarding these ‘national champions’ is that they should stop living off the whole economy, as it is obvious that the policy of supporting them at the expense of other businesses and citizens has been carried out for many years…It is time we see that our ‘national champions’ are great repositories of money and resources that may be used much more efficiently with a right approach,” he said.

Few people know that…purchases of Gazprom and Russian Railways are larger than that of the federal budget. Just imagine what could happen if they are changed, and I am not even speaking about investment programs and costs of cement and bricks in these companies.”

Competition leads to higher labor productivity…to more innovations. If we start to encourage ‘national champions’ in their current state, we will stimulate lower labor productivity…and the country’s potential for innovations. And it has a simple name of the state-monopoly capitalism.”

Russia’s economy can be diversified in 10 years, he added.

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