Support The Moscow Times!

Putin Blasts Russian State Companies, Warning of 'Cartel Danger' to Economy

Vladimir Putin Kremlin Press Service

President Vladimir Putin has railed against state-run companies for “monopolizing” markets in Russia and endangering the Russian economy. 

Russia’s anti-monopoly watchdog said last year that it observed a “universal cartelization of the Russian economy” in recent years.

Speaking at a meeting on business competition Thursday, Putin criticized state-run companies for squeezing out small and medium-sized businesses from the market through unfair practices. 

“Cartels are growing in high competition industries; entrepreneurial initiative and motivation to open a business are getting undermined,” Putin said in a transcript of the meeting. 

He noted that business-owners found it hard to compete in markets taken up by public and state-run companies and that it was “difficult to win a state or municipal order through honest competition.” 

Criminal cartel cases have been on the rise in the past two years, he said, singling out the construction industry as a leader in violations.

Putin also raised the growing issue of “regional protectionism,” a practice where local administrations create favorable conditions for companies from their own regions. 

“I would like you all to hear it now: A local producer means a Russian producer, this is extremely important,” he said.

Read more

The need for honest and objective information on Russia is more relevant now than ever before!

To keep our newsroom in Moscow running, we need your support.