Azernews.Az

Russia should abandon its policy of providing state support to specific sectors of the economy and start supporting domestic firms integrating into world production chains, Prime Minister Dmitry Medvedev said on Wednesday, RIA Novosti reported.

"It is necessary to go beyond the sectoral approach, which has been established and is frequently practiced in our country. The focus should be on companies integrating into international chains, and this would yield a greater effect than an all-out support of particular sectors," Medvedev told the Gaidar economic forum in Moscow.

"This relates to the transfer of technologies, know-how and management principles," the premier added.

This approach requires a fresh view on economic policy, and issues such as the customs regime, tariff regulation, tax administration, infrastructure development and other processes, Medvedev said.

Heavily reliant on raw material exports, primarily oil and gas, Russia has been pushing for economic diversification, and trying to promote higher added value production. However, the economy remains stubbornly reliant on raw materials production.