We do not see any significant changes. Today, 84% of entrepreneurs believe that doing business is a dangerous thing, that <...> administrative pressure is increasing. Nearly 50% believe that it is growing. <...> The number of fines has increased. Liability, financial responsibility of entrepreneurs has increased dramatically, and today it is <...> nearly 150 billion roubles. <...> The decision of the Russian President that warnings should be used as the first measure to penalize businesses, works in virtually no agencies [with the exception of the Ministry of Emergency Situations, – Ed.] — Boris Titov, Presidential Commissioner of the Russian Federation for the Protection of Entrepreneurs’ Rights.
The criminal process is still a problem. <...> If a criminal case is initiated, 135 people, on average, lose their jobs in a company. Each criminal case is not only a shock to the entrepreneur, it is a shock to the people who work for the enterprise — Boris Titov, Presidential Commissioner of the Russian Federation for the Protection of Entrepreneurs’ Rights.
Experts <...> note that in recent years <...> factors affecting the attractiveness and competitiveness of the Russian jurisdiction <...> are rather in the context of criminal, rather than economic disputes — Boris Boltyanskiy, Editor-in-Chief, Pravo.ru.
According to the Supreme Court, the number of lawsuits in arbitrations is growing by more than 10% annually. <...> Disputes with government agencies drive the growth. <...> Just in the first quarter of 2019, the amounts of lawsuits to government bodies increased by 42% year over year. That is combined with a with a known background problem: the so-called pro-budget orientation of the courts — Boris Boltyanskiy, Editor-in-Chief, Pravo.ru.
Many risks are directly related to the rule of law. This is a big restriction for international investors. <...> Many clients do not want to trade in countries, including Russia — Giovanni Salvetti, Managing Director, Head of Russia & CIS, Rothschild.