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    Corruption costs Russia 3% of GDP yearly

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    Corruption costs Russia the equivalent of 2.9% of its GDP every year, a presidential aide has said, the Kommersant daily reported on Monday.

    Corruption costs Russia the equivalent of 2.9% of its GDP every year, a presidential aide has said, the Kommersant daily reported on Monday.

    Kickbacks in state procurement programs alone account for 1 trillion rubles ($32.5 billion), Konstantin Chuichenko, head of the presidential financial oversight administration, said.

    "Up to 5 trillion rubles in budget funds is spent on procurements for federal and municipal needs. The optimization effect can exceed 1 trillion rubles," Chuichenko said.

    "In plain Russian, the volume of theft can be reduced by 1 trillion rubles," President Dmitry Medvedev commented.

    About 10 million state contracts are signed every year, "a significant part of which have in-built kickbacks," he said.

    Chuichenko proposed establishing a Federal Contract System to deal with the problem. It will monitor all contracts and assess their effectiveness.

    MOSCOW, November 1 (RIA Novosti)

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