Putin -- who has boosted the government's clout in key industries, including oil, in his eight years in power -- told business leaders from the Russian Chamber of Commerce and Industry that the Kremlin does not intend to create "state capitalism."

Putin has established state corporations focusing on manufacturing, aviation and space, and construction, saying a tight Kremlin grip on key industries is necessary to bolster the economy.

But he assured business officials that state corporations would get less support in the future.

"We don't plan to keep state corporations the way they are now," he said. "After the corporations are stable and standing on their feet, it would be good for them to work in the market," he said.

He also promised that the government would safeguard private enterprise and ensure that state corporations "do not strangle other businesses."

Putin, who has faced criticism over Kremlin interference in the business world, said if state corporations monopolize certain market niches, the government will step in to protect smaller players. He did not elaborate.

At the same time, mammoth state-controlled companies such as natural gas monopoly OAO Gazprom and oil giant OAO Rosneft have expanded their presence in Russia and abroad.

In a case that has come to symbolize the Kremlin's consolidation of control, Rosneft has acquired most of the former assets of OAO Yukos, once Russia's largest oil producer.

Its former chief, Mikhail Khodorkovsky, is serving an eight-year prison sentence widely seen as punishment for challenging Putin's policies.

Foreign oil companies, meanwhile, have ceded control over major projects under what Kremlin critics say is government pressure.

Royal Dutch Shell Group PLC sold a controlling stake in the Sakhalin-2 project and BP PLC sold its stake in the Kovykta gas field.