Russia's economic model doesn't encourage growth, PM says

According to Prime Minister Dmitry Medvedev, the current model of the economy doesn't encourage economic growth and will lead to permanent stagnation, Ekho Moskvy reports on Friday.

Addressing attendees at an investment forum in Sochi, the head of cabinet said that this model seems stable only at first glance.

In such circumstances Russia should focus on the private sector of the economy. It's also necessary to stop pursuing full employment and close some jobs, Medvedev believes.

While delivering a speech during the same event, Russian Economy Minister Alexey Ulyukayev said that the current stagnation is worse than an actual economic crisis.