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The Roscongress Foundation – a socially oriented non-financial development institution and a major organizer of international conventions; exhibitions; and sporting, public, and cultural events.

The Foundation was established in 2007 with the aim of facilitating the development of Russia’s economic potential, promoting its national interests, and strengthening the country’s image. One of the roles of the Foundation is to comprehensively evaluate, analyse, and cover issues on the Russian and global economic agendas. It also offers administrative services, provides promotional support for business projects and attracting investment, and helps foster social entrepreneurship and charitable initiatives.

Each year, the Foundation’s events draw participants from 208 countries and territories, with more than 15,000 media representatives working on-site at Roscongress’ various venues. The Foundation benefits from analytical and professional expertise provided by 5000 people working in Russia and abroad. In addition, it works in close cooperation with 126 economic partners; industrialists’ and entrepreneurs’ unions; and financial, trade, and business associations from 69 countries worldwide Russia also cooperates with 92 Russian public organizations and 54 regional governments.

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Share and Earn: The Sharing Economy
26 May 2018
11:45—13:00
KEY CONCLUSIONS
Sharing economy in Russia is developing actively

Last year we did a research on what happens in the Russian market. <...> The Russian market of the sharing economy is estimated at 119 billion dollars. <...> 80% of surveyed noted that sharing various digital platforms is an opportunity to save money and use goods and services whenever they are needed. It is also protection of the environment and conscious approach to consumption, which is becoming more and more in demand among the younger generation in Russia, people from 25 to 40 — Dominic Fean, Vice President for Public Affairs, Hill+Knowlton Strategies.

Models of sharing economy are evolving

When we speak about the sharing economy, many people think that it is C2C. And that is a large part of this economy. <...> The next frontier for this economy is B2B, in order to generate joint revenues or to create joint ownership for the shareholder in order to take advantage of the cost structure. We formed co-working, a joint creation of jobs which allows <...> people to work together at lower costs — Marc-Andre Kamel, Partner, Leader, Global Retail Practice, Bain & Company..

Sharing economy contributes to growing trust between people

10 years ago, when we started this business, it seemed impossible that people would be riding together with BlaBlaCar. <...>But now in Russia many people travel this way: 15 million people, or 10% of the population. The service has very large market penetration. Technology is changing too — Nicolas Brusson, Chief Executive Officer, Co-founder, BlaBlaCar.

Sharing economy benefits the government

By using the sharing economy, we pursue several goals: to save city government funds; to increase efficiency of those investments; for the convenience of the residents — Artem Ermolaev, Minister of the Government of Moscow; Head, Department of Information Technologies, Government of Moscow.

“[The idea of the sharing economy] is supported by the federal and local governments. That is because of the challenges that we are facing, for example, protecting the environment from unnecessary use of cars. Sometimes we even get financial help, as, for example, from the administration of Paris — Nicolas Brusson, Chief Executive Officer, Co-founder, BlaBlaCar.

Internet technologies remain attractive for investors

One of the main areas where we have been investing for more than 20 years is Internet technology. <...> That area is strategically important for us. It allows to create services that have a strong network effect. <...> Most services of that kind become the most interesting for both users and service providers. When they grow up and become independent, they do not need to spend a lot of money on marketing. <...> Yes, they require large initial investments, but then they deliver very good return. <...> In Russia, that is promising because of the large territory and relatively low cost of good engineers’ labour — Elena Ivashentseva, Senior Partner, Baring Vostok Capital Partners..

ISSUES
Lack of legislative regulation of the sharing economy in Russia

Much like in many jurisdictions in the world, the sharing economy in Russia does not comply with the current legislation. Online platforms in Russia face the same challenges in terms of compliance with legislation as other Internet companies, <...> and they do not correspond to regulation of certain industries. The question of how to regulate such platforms becomes a challenge for sustainable development of this kind of economy — Dominic Fean, Vice President for Public Affairs, Hill+Knowlton Strategies.

Low fiscal discipline of users

Among users there is no tradition of strictly filing tax returns, paying taxes — Dominic Fean, Vice President for Public Affairs, Hill+Knowlton Strategies.

Strict licensing requirements hinder development

Participation in the communities of certain platforms, where users offer services that require a license, is a bottleneck. Rigid licensing requirements are the reason why many services that exist in foreign countries are not available in Russia. That is because there are no documents that not only specify how to regulate it, but also how to generally identify it — Dominic Fean, Vice President for Public Affairs, Hill+Knowlton Strategies.

Lack of special services for guests of major events

The World Cup presents big challenges for cities, especially with regard to the use of infrastructure. A significant number of additional residential parking spaces is needed, and there are other problems that the city authorities, hoteliers and others are not able to handle — Andrey Verbitsky, Regional Managing Director for Russia, Central and Eastern Europe, Turkey and Israel, Airbnb.

SOLUTIONS
Development of adequate regulatory norms

“[The market] will grow in the next few years. <...> Appropriate regulatory norms will be adopted — Dominic Fean, Vice President for Public Affairs, Hill+Knowlton Strategies.

Infrastructural support from the city and regional government

One fifth of the world's cities have programmes in the sharing economy. Certainly, Moscow is among them — Karen Kazaryan, Director, Institute for Internet Research.

There are several areas of focus. Firstly, that’s infrastructure interaction, when the city creates infrastructure that may later be used by a large market player, no matter if it’s fibre optics, wi-fi or something else, or if it’s physical infrastructure, like, for instance, parking spaces for car sharing. We have now started discussing the 2030 strategy, and we’re introducing the niches that we can use together with the businesses — Artem Ermolaev, Minister of the Government of Moscow; Head, Department of Information Technologies, Government of Moscow.

Balance of interests of consumers and service providers

Modern transportation services are created so that additional costs for users could be eliminated, and so that taxi drivers could make money. <...> Today many people use taxis almost on a daily basis. We recently did a joint research with VCIOM: many people say that they are ready to sell their car and use public transport, including taxis. That’s where taxis are in the lead — Daniil Shuleyko, Managing Director, Yandex.Taxi.

Development of special services for tourists

Thanks to the principles of the sharing economy, we create services for fans who travel to the cities hosting the World Cup. It creates a unique opportunity to make money for host cities, and <...> local businesses have the opportunity to serve those customers. Thus, we take them out of the grey area — Andrey Verbitsky, Regional Managing Director for Russia, Central and Eastern Europe, Turkey and Israel, Airbnb.

The material was prepared by the Russian news agency TASS