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Russia needs to hop off the 'oil needle' and develop small business — TASS research center

Over the past 15 years the share of oil and gas revenue has not diminished, but increased and it’s no longer a third, but a half of the revenue, Chief of the TASS Research Center says

MOSCOW, March 31 / TASS / Russia soon needs to focus on getting rid of its oil dependency and develop small business and improve living standards, said Semyon Sorkin, Chief of the TASS Research Center during the round table discussion at TASS dedicated to the 15th anniversary of the election of Vladimir Putin as president of Russia on Tuesday.

"Over the past 15 years the share of oil and gas revenue has not diminished, but increased and it’s no longer a third, but a half of the revenue," Sorkin said.

Another area that needs to be further developed, said Sorkin, is the support for small business. He admitted that the input of small business into the country's GDP has increased over the last few years, but that Russia still lags behind other countries in that matter.

Sorkin went on to say that Russia also needs to increase production independence. According to experts, the share of Russian medicine on the domestic market fell by 10% from 2000-2012. In addition, there is a need to focus on improving the living standards of living for Russian citizens, he said.

Sorkin's report shows the growth of the Russian economy during the 15 years of Putin's presidency. During these 15 years, the GDP grew by 76% from 2000 until 2014, while the national debt was reduced by 69%.

The average salary has increased due to inflation, by 3.8-fold, pensions by 2.7-fold. Aside from that, Sorkin said that funds from the federal budget are not only being spent on military and defense, but on culture and sport as well.