A socially oriented non-financial development institution and a major organizer of nationwide and international conventions; exhibitions; and business, public, youth, sporting, and cultural events.

The Roscongress Foundation is a socially oriented non-financial development institution and a major organizer of nationwide and international conventions; exhibitions; and business, public, youth, sporting, and cultural events. It was established in pursuance of a decision by the President of the Russian Federation.

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, 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 5,000 people working in Russia and abroad.

The Foundation works alongside various UN departments and other international organizations, and is building multi-format cooperation with 173 economic partners, including industrialists’ and entrepreneurs’ unions, financial, trade, and business associations from 78 countries worldwide, and 188 Russian public organizations, federal and legislative agencies, and federal subjects.

The Roscongress Foundation has Telegram channels in Russian t.me/Roscongress, English – t.me/RoscongressDirect, Spanish – t.me/RoscongressEsp and Arabic t.me/RosCongressArabic. Official website and Information and Analytical System of the Roscongress Foundation:roscongress.org.

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A Life without Bankruptcy: Saving and Revitalizing Businesses Here and Now
30 June 2022
14:30—16:00
KEY CONCLUSIONS
Long recovery from bankruptcy

It takes us a long time to recover [from bankruptcy – Ed.], we need to act earlier — Vadim Soldatenkov, Head of the Bankruptcy Proceedings Department of the Federal Tax Service of Russia.

Despite how numerous they are, SME are vulnerable. They have fewer opportunities for getting legal assistance than big business. Often, in a borderline situation, where they have not formally entered bankruptcy, but the signs are already there, entrepreneurs make the worst decision – to do nothing — Ivan Podbereznyak, Deputy General Director, Russian Small and Medium Business Corporation.

Customer-oriented FTS

The most important thing for us is becoming as customer-oriented as possible. All we are interested in is how we meet the needs of the taxpayer. <…> We have become a different kind of service. <…> We have the Federal Tax Service Manifesto… The budget and taxes, as it says in the manifesto, are my and our investment in the future. <…> We are creating rules to encourage openness, integrity, and honesty. <…> Another principle from the manifesto is 100% mutual trust and 0% costs. These principles would be difficult to understand if we did not try to follow them in practice — Konstantin Chekmyshev, Deputy Head, Federal Tax Service of the Russian Federation.

ISSUES
Ineffective bankruptcy rehabilitation methods

Essentially, none of the bankruptcy rehabilitation methods are working today. This is because creditors and debtors do not work together enough and do not trust each other. <…> As for the supervisory procedure … in 2021, supervision was introduced in 8,987 cases. <…> Financial rehabilitation is introduced by the commercial court after the first creditors meeting, and is a rehabilitation measure like settlement agreements and external administration, but in practice we can see that this procedure does not work. Because trust is missing, as I already said, between debtors and creditors. Debtors, as a rule, try to conceal their financial position, they go past the point of no return, after which it is practically impossible to restore solvency. Creditors also lose faith in debtors, because they have been let down once, they want to get some cash, without knowing the real financial situation of the debtor. <…> Debtors enter the bankruptcy procedure when they have exhausted the other means of paying their debts. There is little effectiveness in carrying on the business once the main assets have already been removed. The debtor cannot be returned to solvency in that situation. So neither supervision nor financial rehabilitation is performing its function today — Aleksandr Selivanov, Deputy Director of the Department of Legislative Activities, Chamber of Commerce and Industry of the Russian Federation.

One of the key issues is freezing accounts and how quickly it is applied. The entrepreneur is often simply not prepared. <…> The entrepreneur is at a loss. <…> It is important to grasp the situation and act appropriately — Ivan Podbereznyak, Deputy General Director, Russian Small and Medium Business Corporation.

SOLUTIONS
Debt restructuring instead of the usual bankruptcy methods

We need to think of a new approach that would enable the debtor to remain afloat and creditors to receive their funds. One approach could be debt restructuring. <…> The Law comes first, but we also need different approaches there, to prepare the infrastructure to increase trust between debtors and creditors — Aleksandr Selivanov, Deputy Director of the Department of Legislative Activities, Chamber of Commerce and Industry of the Russian Federation.

The [SME – Ed.] Corporation has a feedback service – 360 degrees – operating on the SME Corporation digital platform. We often hear from entrepreneurs: “Please help us talk to the tax service”, – or, for instance, a situation where accounts have been frozen and the company is most likely sinking into bankruptcy, will be liquidated. <…> There are concrete case histories. We received a query through the digital platform from an entrepreneur in Moscow who was in a frozen accounts situation and was asking for assistance with restructuring debts and looking for potential solutions. That was done. A settlement was reached with the entrepreneur, we found a way to restructure the debt, and in the end, it was paid over three years — Ivan Podbereznyak, Deputy General Director, Russian Small and Medium Business Corporation.

Creating a new portrait of the debtor

We cannot let ourselves, considering all the challenges we are facing, continue to wait for something. <…> Taxpayers and business make the budget. Our task is not just to take the last penny, but to help every businessperson handle any difficult financial situation. Covid made that easier, there were obvious identifying numbers, industries, we made several markers for directing the support procedure. <…> In 2022, we began trying to replicate those actions, doing a lot of what had already been done, – if they rejected bankruptcy… let's see who can delay recovery. <…> We have situational centers that gather problems from businesses. When we started trying to understand how we can structure each “struggler”, we understood that it cannot be done systemically and quickly. Every unsuccessful story is different. <…> We began thinking about how to put together a new method, which could be used to put together a portrait of the debtor for which we are preparing an individual action plan, using the digital data we already have — Konstantin Chekmyshev, Deputy Head, Federal Tax Service of the Russian Federation.

The material was prepared by the Russian news agency TASS