Report: Russia needs competitive markets more than privatization

MOSCOW, Jan 17 (PRIME) -- The Russian economy needs to develop competitive markets more than further privatization, Economic Development Minister Maxim Oreshkin said in an interview to the Financial Times newspaper on Tuesday.

“If you simply privatize a large state-owned company that dominates the market, you will not improve the competition situation and there will not be any significant positive influence on (economic) growth,” the minister said, adding that he does not want the state to play a bigger economic role.

Oreshkin disagrees that a recovery in oil prices has weakened the authorities’ determination to implement structural reforms. But he said advance is possible only if businesses believe that macroeconomic conditions are stable and reform policies are clear and predictable.

Preventing further development of grey economy is one of Russia’s top priorities, the minister said. “We will improve the taxation system in order to support those who work legally and those who invest and innovate, those who export and those who work hard to achieve higher growth rates,” he added.

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