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Improving
the investment
climate

arrangements to improve the investment climate in russia

A congenial investment climate is largely characterized by the quality of government processes: from the promptness of enterprise registration and the ease of connection to the power grids to the procurement of permits for the construction and the development of competition. Furthermore some administrative barriers to the business development in the Russian Federation, exist at regional and municipal levels.

Agency for Strategic Initiatives implements the series of projects related to the creation of favorable conditions for business, the attraction of investments in the Russian Federation and the improvement of the effectiveness of the regional management teams.


National Business Initiative (NBI)

Road maps of the NBI

Road maps are the action plans prepared by the participants of the working groups of the National Business Initiative (NBI) and aimed at improvement of the investment climate in the Russian Federation. Road maps are approved by the decree of the Government of the Russian Federation and are aimed at simplifying, cheapening and acceleration of acting business procedures on the territory of the Russian Federation. As the benchmarks of the successful implementation of the road maps the annual Doing Business index of the World Bank, as well as the indicators of the competitive environment OECD PMR and the indicators of entrepreneurial activity New Business Density are selected. The target of the implementation of road maps of NBI is Russia's entry into the top 20 countries on the investment climate in 2018.


Administrative procedures

  • Corporate
    management
  • Regulatory
    environment
  • Valuation
    activities
  • Tax
    Administration
  • Registration
    of companies
  • Property
    registration

Markets

  • Acces to purchases of the gevernment
    companies and the publick
    owership companies
  • Promotion of competition
    • Medicine
      market
    • Medical
      services
      market
    • Air transport
      market
    • Oil product
      market
    • Communications
      services market

Infrastructure

  • Procurement of perms
    on construction
  • Crid
    connection

International economic activity

  • Streaming
    of custom
    procedures

  • Promotion in foreign
    markets and export
    support


In 2015, the main stage of "roadmap" design was complete. In accordance with the Decree of the Russian Government No. 174-p dd. Feb. 6, 2016, it has started to monitor the "roadmaps" to promote competition, improve the quality of supervision, and give small and mid-size enterprises better access of state companies' procurement and enterprise registration. For the rest of the NEI focus areas, cooperation with businesses continues to make refinements from adjustments to some of the roadmaps to enforcing specific regulatory legal acts.

407
legal acts passed
49
procedures cut
330
days cut

Effects of roadmaps

The time to get connected to power networks almost halved.

There are now only three mandatory procedures to get connected to power networks (down from 10).

The roadmap has halved the entrepreneur's costs to build power network connections from the existing network to the facility.

Connection
to power
networks

1. There are now only three mandatory business start procedures
(down from 9), whereas it now takes only seven days to complete them (down from 30).

2. Online company registration implemented.

3. Seals are now not mandatory.

4. Notarization of company registration applications is now not mandatory either.

Enterprise
registration

1. There has been passed a unified exhaustive list of residential construction procedures.

2. There are now only 19 mandatory procedures in the area of residential construction (down from 51); the time to complete them has been almost halved to 263 days (down from 423).

Construction

Travel authorizations have been canceled.

Quality
of State
Supervision

State companies are now obliged to procure at least 18% of their total procurement amounts from small and mid-size enterprises.

Access to state companies'
procurement

Standard to Boost Competition in Russian Regions has been approved.

Competition
support

Customs duties can now be paid online.

Customs
administration

1. The Russian Export Center has been established as a "single window" for the financial, informational, and consulting support for Russian exporters.

2. Eximbank of Russia has launched its program to grant loans to support high-tech manufacturing; the interest rate is reduced for such loans.

3. A set of measures to simplify retail and low-scale wholesale exports has been developed.

Exports
support

The application procedure to get a 0% VAT rate has been simplified.

Tax
administration

1. State registration of real estate rights now uses an electronic document submission system.

2. To get such rights registered now takes 10 business days (down from 43 calendar days).

Property
registration

Entrepreneur surveys

Four years ago, the Agency for Strategic Initiatives started to implement its National Business Initiative (NBI) program to improve the business climate in the country. It was the first time ever for entrepreneurs to cooperate with authorities and experts to create the roadmaps. As of today, twelve such roadmaps have been approved by the Government of the Russian Federation.

The NBI innovations affect the crucial business operations areas, including faster and cheaper (i) connection to power networks, (ii) registration of legal persons and property rights, (iii) construction, (iv) customs control; (v) access to state companies procurement, etc.

Whether these new acts work as intended can only be assessed by entrepreneurs who constantly face administrative overregulation and notice how easier, cheaper, and faster their business operations have become.

Final survey analysis is reported to the Government of the Russian Federation to be used to make managerial decisions intended to improve the current business situation.

  • 12 roadmaps approved
  • Over 14 thousand entrepreneurs surveyed
  • 412 persons participating in working groups
  • 859 measures listed in the roadmaps
  • 697 such measures taken
  • 470 regulatory acts issued

Working Group

The Governmental Commission for Economic Development and Integration has established a working group to ensure the strategic uniformity of Russia's cooperation with the World Bank to improve Russia's Doing Business rank. The group's goal is to take additional measures to make doing business in the country simpler and cheaper. The group is to assess the practice of law enforcement, identify topical problems that jeopardize reforms, and address such problems.

National Regional Investment Climate Ranking

This ranking is an assessment of the measures regional authorities take at any level to create a favorable business environment. Most indicators are generated based on the regional entrepreneur survey data.

The pilot tests of the National Ranking were carried out in 2014 in 21 entities of the Russian Federation. Full-scale rankings were first compiled in 2015. The measures regional teams take to create a comfortable business environment were assessed in 76 entities of the Russian Federation. In 2016, the analysis covered all the 85 regions of Russia. Four of those (the Nenets Autonomous District, the Chukotka Autonomous District, the Republic of Crimea and Sevastopol) were assessed outside the rankings.

READ MORE

Target models to simplify running business and make Russian Federation's entities more investment-attractive

Target models are a set of factors to create a favorable regional investment climate in terms of 12 focus areas, for each whereof there is a determined target and indicators to assess the attainment of such target.

All-Russian Contest of Best Practices and Initiatives of Socioeconomic Development of Russian Federation Entities

This contest has been organized to identify the best practices and initiatives of the socioeconomic development that have been proven efficient in Russia's regions and municipal entities and that help improve the business climate as well as the investment potential of these territories.

Regional Investment Standard

The Regional Investment Standard is a key project the Agency for Strategic Initiatives carries out to create favorable business environment in regions. The Standard includes 15 best investment practices that are in place in most thriving regions.

The Standard enables businesses to affect the authorities decision making. This is based on an efficient communication platform that the Standard essentially is. The Standard itself is based on the procedure where businesses assess the efforts the regional authorities take to match this or that requirement per the Standard. All the business communities and associations are involved in the process.