Competitiveness of Russian Jurisdiction: Rebooting the Legal Environment for Business as a Pathway towards a Trust Economy
Digitalization to give Russian jurisdiction precedence
New laws drafted and adopted to form the legal framework for the national economy’s transition towards a digital path resulted in the Russian jurisdiction acquiring new competitive advantages. Objectives set by ‘traditional’ economy retain their relevance: what are the best international practices that should be used to ensure advanced development of Russian jurisdiction? Where are the limits of the regulator's trust in business? How can improvement of Russian legal system stimulate development of the economy of trust? — Vladimir Gruzdev, Chairman of the Board, Association of Lawyers of Russia.
Modern technologies help protect entrepreneurs
We are using the modern technologies opportunities to protect entrepreneurs. For two years, we’ve had a direct channel for communication with them. Introduction of this resource helped us reduce the time it takes prosecutors to react to violations of rights threefold, if compared to traditional written appeals — Yury Chayka, Prosecutor General of the Russian Federation.
Fewer arrests of entrepreneurs
The message that entrepreneurs can not be arrested at the preliminary investigation stage gradually began to work. Over the last year, we’ve recorded 500 fewer arrests, which is almost 10%. But the number of house arrests went up — Boris Titov, Presidential Commissioner of the Russian Federation for the Protection of Entrepreneurs’ Rights.
More government against entrepreneurs lawsuits
We are witnessing a steady increase in the lawsuit burden on the Russian economy. According to the Supreme Court, every year it goes up by 7%. We see an upsurge, comparable only to what was observed in 2015. But if back then it was driven by bankruptcy of individuals and an increased number of legal entities bankruptcies, now it’s an increment of administrative lawsuits. This can be regarded as the government’s pressure on business. The total number of registered non-bankruptcy lawsuits went up by 20% — Boris Boltyanskiy, Editor-in-Chief, Pravo.ru.
Violations in public procurement
Poor performance of government and municipal contracts by customers remains a pressing issue. In July last year, we initiated adding significant fines for such violations to the Administrative Code. Over less than a year, three hundred officials have already been brought to justice under this article by prosecutors decrees — Yury Chayka, Prosecutor General of the Russian Federation.
Exorbitant electricity tariffs
Our preliminary calculations show that just the network component of electricity tariffs is 28% higher than the legally accepted methods — Boris Titov, Presidential Commissioner of the Russian Federation for the Protection of Entrepreneurs’ Rights.
Sanctions driven pressure
The main obstacle in Russia is lack of predictability. If you do business in Russia, then what about the sanctions? — Markus Jerger, Chief Executive Officer, German Association for Small and Medium-Sized Businesses.
Lack of arbitration courts
Do you know how many arbitration courts we have in the country? According to the latest information, it’s four. This is absolutely not enough, if we want a quick and cheap trial for financial case on the one hand, and on the other if we want fewer cases to go to the public court — Pavel Krasheninnikov, Chairman, State Duma Committee of the Federal Assembly of the Russian Federation State Building and Legislation .
Officials’ compliance with antitrust laws
If officials observe the antimonopoly legislation, they don’t have to deviate instructions — Andrey Tsarikovskiy, Stats-Secretary, Deputy Head of the FAS Russia.
Prosecutors reauthorized to supervise investigation
We expect a significant improvement in the business climate after prosecutors are returned the full authority to oversee investigation — Yury Chayka, Prosecutor General of the Russian Federation.
Making judicial system more transparent. Upgrading Civil Code
Improving Russia’s investment attractiveness requires an increase in judicial transparency, an upgrade of the Civil Code and established feedback mechanisms — Dmitry Afanasiev, Chairman, Co-founding Partner of Egorov, Puginsky, Afanasiev & Partners.
Changes to the Civil Code on financial transactions will become effective on 1 June. The financial system has been waiting for these changes for over 15 years — Elena Borisenko, Deputy Chairman of the Management Board, Gazprombank.
The material was prepared by the Russian news agency TASS