This circumstance will not only make it impossible to double GDP by 2010 but also will leave no opportunity to solve social problems, provide national security and modernise the economy, the prime minister said.
"In essence, we are talking about the transition from the rental economy to the economy of development," said the head of the cabinet.
Mr. Fradkov recalled that in the past four years, the Russian economy had begun to grow: GDP increased 1.3-fold, the average economic growth rate made 6.8%, and real incomes of the population went up by more than 1.5 times.
"These are inspiring facts, yet they are not enough for us to relax," the prime minister said.
"We cannot turn a blind eye to the fact that economy is still based on mineral resources, on the infrastructure and the main reserves created by previous generations," said Mr. Fradkov.
Russia's addiction to raw materials is making the national economy unstable, he concluded.