Medvedev says Russia's state corporations must disband
* Medvedev says some corporations must die
* VEB, RusTech could become joint stock firms-Kremlin aide
* Government keen to claw back state aid
By Denis Dyomkin
MOSCOW, Nov 12 (Reuters) - President Dmitry Medvedev pledged on Thursday to disband Russia's inefficient state corporations, created by his predecessor Vladimir Putin, and called for a probe in to their use of state money.
During Russia's economic boom years under Putin, some state corporations became conglomerates with sway over entire sectors such as defence equipment, strengthening the Kremlin's grip over the economy and hampering competition.
"As far as state corporations are concerned, I think they have no prospects in the current environment," Medvedev said in his annual state of the nation address.
Analysts said the attack had probably been agreed with Putin, now Russia's prime minister. Any such move would be aimed at clawing back state money, they said. They also noted the rise of the conglomerates had continued under Medvedev. Continued...
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