Medvedev says Russia needs new economic model

Russia must reduce state dominance of the economy and improve conditions for investors and entrepreneurs to avoid succumbing to even slower growth, Prime Minister Dmitry Medvedev said on Friday.

Medvedev, No.2 to President Vladimir Putin, used an annual investment forum in the Black Sea resort of Sochi to warn that a failure to restructure the economy away from an over-reliance on state investments and spending could lead to stagnation. "This model, even if it may seem reliable, risks leading to zero growth," Medvedev said in a keynote address. (Reuter)