One of Russia’s richest businessmen has warned that the country’s economy is increasingly dominated by large corporate conglomerates similar to South Korea’s chaebol model, in which sprawling industrial groups wield significant influence over the national economy.

In an interview with the state-run RIA Novosti news agency, Alexei Mordashov, CEO of steel giant Severstal, said Russia’s economic landscape now shows a “clear dominance of big corporations, while the presence of small and medium-sized businesses remains insufficient.”

Mordashov’s remarks come as Western sanctions force Moscow to rely more heavily on its largest corporate players to sustain key industries and national revenue.