BOFIT Viikkokatsaus / BOFIT Weekly Review 2016/41
There has recently been considerable criticism in Russia of the state’s disproportionately large role and the lack of competition in the economy. Russia’s Federal Antimonopoly Service has found that the share of economic activity involving state or state-owned enterprises has increased substantially over the past decade, seriously impairing competition and hampering the operations of private companies. The CBR says that high level of monopolisation across many industries materially complicates the use of monetary policy channel in managing inflation. The finance ministry has stated that reducing the role of state companies in the economy should be a central policy goal in coming years, noting that state-owned firms consume economic resources inefficiently and crowd out private firms in financial and labour markets.