STEPAN ZEMTSOV: “INDEX OF BUSINESS ENVIRONMENT CONFLICTS IN RUSSIA REACHED MAXIMUM, ENTREPRENEURIAL ACTIVITY GROWS”
Finmarket.ru has published data on record values of the index of conflict of the business environment in Q1 2022. According to Stepan Zemtsov, Senior Researcher, Innovation Economics Department of the Gaidar Institute, growth of this index can prove upswing of domestic entrepreneurs.
Stepan Zemtsov noted that there may be an overlap between two factors, the increased economic activity following the pandemic and the geopolitical events of recent months. "With increased economic activity, there is certainly an increase in disputes between counterparties," he said.
In the meantime, as the expert noted, in March 2022, many foreign companies announced suspension of their operations in Russia, which could not but affect the number of corporate disputes, as delivery challenges and payment for raw materials and supplies appeared almost immediately. "Therefore, it is expected that the index of conflict may grow slightly in Q2. However, one needs to be aware of the calculation methodology: for example, during the pandemic, the number of conflicts declined as a result of a reduction in business activity, as well as the moratorium on bankruptcies and restrictions in the courts," explained Stepan Zemtsov.
In the meantime, as the expert noted, in March 2022, many foreign companies announced suspension of their operations in Russia, which could not but affect the number of corporate disputes, as delivery challenges and payment for raw materials and supplies appeared almost immediately. "Therefore, it is expected that the index of conflict may grow slightly in Q2. However, one needs to be aware of the calculation methodology: for example, during the pandemic, the number of conflicts declined as a result of a reduction in business activity, as well as the moratorium on bankruptcies and restrictions in the courts," explained Stepan Zemtsov.