MOSCOW. Nov 9 (Interfax) - Russian First Deputy Prime Minister Sergei Ivanov has admitted that administrative red tape hinders the development of small and medium-size businesses in Russia.

"Up to 10% of small and medium-size businesses' spending goes into overcoming administrative red tape," Ivanov said at a meeting with managers of small and medium-size businesses in Moscow on Friday.

Although this figure was higher in Russia several years ago, in Germany it is within 3.5%, Ivanov said.

The situation "in Russia in this area is improving, but it is still far from ideal," Ivanov said. "There is a lot of room for improvement here," he said.

Ivanov at the same time praised the positive trend in the taxation of small and medium-size businesses.

"I know, and you said about this yourselves, that the issue of taxes was number one just recently. Now you yourself rate the significance of this problem the fourth," Ivanov said addressing the businessmen.

This improvement is due to joint measures that the government made together with the businessmen, he said.