Conditions for Conducting Business in Russia Gradually Improving

29 October 2013. The World Bank presented the eleventh issue of its annual report "Doing Business 2014: Understanding Regulation of the Activities of Small and Medium Businesses".

The ratings consider the conditions for the organization of entrepreneurial activity in 189 countries under the following criteria: opening a business, obtaining construction permits, connecting with the power network, registering ownership, access to credit, protection of investor rights, paying taxes, cross-border trade, guaranteeing observation of contracts and regulation of bankruptcy.

The report evaluated the regulatory changes for the period from June 2012 through May 2013. 114 countries carried out 238 reforms of their regulations, 18% higher than the figure for the previous year. Singapore once again headed the world rating of countries regarding favorable conditions for doing business. Other countries in the top five were Hong Kong, China, New Zealand, the USA and Denmark.


In 2012, RF president Vladimir Putin, in his order Regarding Long Term State Economic Policy, particularly emphasized the necessity of adopting measures directed toward improving the position of Russia in the "Doing Business" rating to fiftieth place in 2015 and to twentieth place in 2018. As the result of a number of changes, Russia moved into the first hundred countries (92nd place), rising 19 places in the rating of conditions for business compared with 111th place a year earlier. Barbados and Serbia were in 91st and 93rd place respectively.


In improving the status of the country, simplification of connection to the energy grid played a major role. Last year, Russia placed 184th (next to last) in this category and in just one year rose almost 70 places, reaching 117th place. The time period for connection was shortened from 281 to 162 days. Also, the procedure for obtaining building permits became simpler, despite the fact that the country was still in 178th place in that category. The number of procedures was shortened from 42 to 36, and the time period from 344 to 297 days, in connection with the ability to obtain certain services electronically.


Russia rose to 157th place in comparison with 162nd the previous year in the indicator for favorable conditions for conducting international trade. The introduction of electronic declaration cut the time for submission of documents for import almost in half, to 21 days, for export to 22 days, and the number of forms from 11 to 10 for import and 9 for export.


Hence, further reform in the area of business regulation will permit Russia to actively raise its position, following the stated goals set by the government.

D.V. Larionova - Research associate, Center for Structural Research