The survey of Russian business environment by the foreign companies

Compared to 2011, 44 percent of the respondents noted an improvement, with 34 percent saying it was a minor one, while 48 percent said no changes had taken place, and 8 percent said the business climate deteriorated. These are the results of a study released by the Russian Union of Industrialists and Entrepreneurs and Fleishman-Hillard Vanguard.

Every year Russian Union of Industrialists and Entrepreneurs (RSPP) conducts research dedicated to evaluating the business climate in Russia. Since 2011 the research includes the results of the poll of foreign companies active on the Russian market prepared by the Fleishman-Hillard Vanguard communication agency.

General Director of Fleishman-Hillard Vanguard, head of Communications Group of RSPP Elena Fadeeva: «As many as 50 percent of the respondents said red tape was a major obstacle for business (19 percent growth), while 42 percent named corruption, and 37 percent noted underdeveloped infrastructure.  Of those polled, 52 percent said tax incentives(double increase from 27 percent) would be a key stimulus for economic development, while 48 percent said transparent decision making by government agencies was a priority, and 40 percent said they would like the government to end overregulation.»

A comparison with the 2011 data demonstrates that the share of those reporting administrative obstacles from Russia’s regulatory bodies has increased in respect of such bodies as the Federal Customs Service (from 33% up to 49%), licensing bodies (from 31% up to 41%), the Federal Consumer Protection Service  (from 20% up to 34%). Meanwhile, 36 percent of the respondents experienced problems with tax authorities, down from 51 percent in 2011, and 20 percent said there had been obstacles connected with the Federal Anti-Monopoly Service, down from 49 percent.

The current condition of infrastructure necessary for business activities can also be described as average – the overall score for 14 spheres is 4.0 out of 7 in 2012, which is almost identical to the 2011 score (3.9). The most complicated situation is related to the parameter of “availability of real estate/land” ( 2.7) with almost no visible changes comparing to the last year (2.6).

In the survey the respondents were asked to name interaction tools that are actively applied between business and government bodies. The most popular turned out to be personal contacts (83%), business associations and industry associations (63%). The number of interaction tools has decreased over the last years: Work in constantly operating advisory deliberative bodies has dropped from 45% to 17% and public and collective interaction has fallen from 35% to 23%.

The survey of Russian business environment by the foreign companies is conducted since 2011. Responders share their opinions on the business environment in Russia, its perspectives and the current problems they are facing with. The report reflects a wide range of foreign businesses’ opinions regarding current conditions of business climate in Russia, the data are compared with the previous year results. The research represents a wide range of industries from manufacturing, energy, trade, HoReCa, transport, telecommunication, financial services, realty, agriculture, forestry, education, healthcare and social services.

The Russian Union of Industrialists and Entrepreneurs /RSPP/ is an independent non-governmental organization. The Union has a membership base of over 120 regional alliances and industry associations representing key industries of the economy, including the fuel and energy industry, the machine-building industry, the investment-banking sector as well as the military industrial complex, the building industry, the chemical industry, and light and food industries. The RSPP has in its ranks more than 328 thousand members representing industrial, scientific, financial and commercial organizations and individual members in all Russian regions.