‘No state capitalism’ – Putin

President Putin said the government would not create state capitalism and would not allow state corporations to monopolize all areas of the economy.

At a meeting with the Russian Chamber of Commerce and Industry, Putin said that the creation of state corporations is a temporary process.

He said they are being created in sectors that business was unwilling to develop. Putin added that once the corporations were established, they could be exposed to the commercial sector.

We’re not going to create state capitalism. That's not what we want, that’s not our way. Although it is not possible to restore some industries without state support. We shall be careful to ensure that the state corporations do not stifle other businesses.

President Putin also spoke about the future of  Russia's Stabilisation Fund – a store of oil taxes worth nearly $US 150 billion.

The President said the government plans to invest some of it into the economy – through innovation projects and pension reforms.

This marks a change in the management of the fund – as it is currently kept out of circulation to prevent excessive inflation.