Russia's business depression continues

Russia's business depression continues

Seventy nine percent of entrepreneurs believe that there are unfavorable conditions for doing business in Russia now, according to the results of the poll conducted by the All-Russian Public Opinion Research Center (VCIOM).

The poll involving 500 respondents was conducted on June 11-17.

However, only 15% of respondents believe that the government is taking active measures aimed at supporting and developing business. Another 27% believe that the country provides good conditions for doing business, and 20% believe that these conditions will be even better in the future. Nevertheless, 76% would like to have their own business.

According to 'pessimists', major obstacles to doing business are the low standard of living (81%), corruption (72%), energy prices (71%). 62% of respondents are dissatisfied with the work of the judicial system, another 62% - with the regulatory and legal regulation of business activities. 63% of respondents are dissatisfied with the work of the regulatory authorities.

The positive factors for doing business are competition in the domestic market (47%), the stable government and domestic policy (35%), credit availability (28%).

The most likely risks are a decrease in demand for products and services (72%), an increase in taxes (70%), unpredictable changes in legislation (64%), problems with law enforcement agencies (41%). In addition, 25% of entrepreneurs fear raider seizure. A default and destabilization of the economy (20%), as well as changes in the political situation (22%) are less scary for the entrepreneurs.

Head of the State Duma’s Committee for Financial Markets Anatoly Aksakov, speaking to Vestnik Kavkaza, noted that the government has several opportunities to create more favorable conditions for Russian business. "First, protecting the business from the bureaucracy and the impact of law enforcement agencies. Second, adopting an understandable development program. Third, making the judicial system independent from the executive branch and more controlled by the legislature," he noted.

"The key point of the development program should be the growth of citizens' well-being," Anatoly Aksakov stressed.

Professor of the RANEPA faculty of Finance, Money Circulation and Credit Yuri Yudenkov, in turn, named reducing the number of departments controlling business activities as the main measure for improving business conditions. "Now there are about 25 departments in Russia can close any business at any time. In this regard, it is necessary to limit the number of departments with the authority to interfere in the current activities of enterprises," he suggested.

Stability and development of business, in turn, will help raise both the economy and the standard of living in the country, Yuri Yudenkov noted. "If entrepreneurs have a normal business, then the well-being of citizens will grow," the professor of the RANEPA faculty of Finance, Money Circulation and Credit concluded.