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Russia has increased its level by 8 positions in the Doing Business - 2012 rating.

23.10.12

According to the report Doing Business – 2013 published by the World Bank, Russia having increased its level by 8 positions occupies the 112th place in the rating of countries with favorable business environment.

According to the Minister of Economic Development A.R. Belousov, he is satisfied with increase by Russia of its rating by 8 positions. “First of all, it is a crucial moment in the existing trend. Actually  our rating has significantly dropped after the crisis and its increase by 8 positions is a significant achievement. Secondly, which brings me even more satisfaction is that by individual ratios we have covered 40 positions at once", he says.

In terms of the ‘entities registration’ ratio, Russia has managed to reverse the negative dynamics that has existed during 5 recent years and improved its positions in this area. The number of the procedures required for registration has been reduced from 9 to 8, and the registration period has been reduced from 30 to 18 days through reduction of the term required for registration with off-budget funds.

Russia has also significantly improved its taxation aspects: the number of payments required to be effected by companies has been reduced from 9 to 7, as well as the time spent by a business entity on tax procedures has been reduced from 290 to 177 hours through improvement of electronic systems, which has secured growth by 41 positions up to the 64th place. "Over recent years the Federal Tax Service that belongs to the most, as I would put it, despised authorities with poor administration that is being constantly criticized by our business, has turned into a flexible, modern and rather advanced structure, first of all due to informatization and improvement of inspectorates’ activity that work directly with entities”, describes A.R. Belousov work of the Federal Tax Service.

Russia has also ranked among ten countries with the least duration of resolution of issues related to performance of contractual obligations (270 days, minimum duration in Singapore - 150 days, in the USA - 370 days, in India - 1,420 days).

There are also signs of improvement in such important area for the Russian economy development as construction: the number of procedures that shall be complied with to obtain a construction permit has been reduced from 51 to 42, and the term of the permit issue has been shortened from 423 to 344 days.

The Minister has noted that the research of Russia in Doing Business is one of the most polarized. “There are areas in which we look not that bad compared to other countries, for example, security of the contract performance, where we are ranked 11th and have improved our position by 2 points. The bankruptcy procedure where we have improved our position by 8 points and are now ranked 53rd. In this connection we can also mention ownership registration, where we are ranked 46th".

At the same time there are areas where Russia is still ranked low and where there are no growth opportunities for it. For example, ‘international trade’. In the current research Russia has lost 2 points and occupied the 162nd place, but these losses are much more significant in natural terms. In particular, according to the World Bank, the cost of the import and export procedures has increased by about 1.5 times, and the number of the documents requested from participants of the foreign economic operations has also increased.

Speaking about prospects, A.R. Belousov noted that next year Russia proposes to be ranked among top hundred companies in the Doing Business rating in terms of three key ratios – ‘obtainment of the construction permit’, ‘international trade’ and ‘connection to power grids’. They have already developed and are implementing ‘road maps’ in these areas. “We have such huge reserves for reduction both of the number of documents and of the time required for the decision taking and permit issue, that I deem it quite practicable”, the Minister said.

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