Addressing the 12th International Economic Forum in St. Petersburg, now in its third day, the official also outlined the government's future role in the economy, saying that while new state companies will be set up, the government aims to limit its 'excessive interference' in the economy.

Shuvalov said: "For the past eight years, Russia has been developing. By the end of t

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his year we will become the world's sixth largest economy."

Russia, which joined the G8 in 1998, has now "become a fully-fledged member of the world's largest economies. We are beginning to put behind us the severe crisis of the last decade, and have given ourselves new goals - to become a country with developed institutions, a modern democracy with a post-industrial economic structure, and to build a global financial center."

A key goal of the government in the coming years will be to scale down its dominant role in the economy, he said.

"Reducing excessive state interference in the economy is now an important factor... The state reacts to crises far slower than an economic entity acting on market signals."

However, he said new state companies would need to be established in the future.

"We believe they are needed to act where market agents are not able to act independently... We will create them in such a way that they will work entirely openly, under the rules of corporate governance."

The St. Petersburg International Economic Forum, running from June 6-8 this year, is an annual event held with the support of by the Russian president, bringing together politicians and business leaders. Russian news agency RIA Novosti is the general information sponsor of the forum.

ST. PETERSBURG, June 8 (RIA Novosti)