Favorable business climate is to be formed in Russia through legislative changes

27th February 2015

The State Duma intends to release the domestic business from excessive administrative burdens, - says the head of the relevant committee Igor Rudensky

In the first reading the State Duma of the Russian Federation’s Federal Assembly adopted a draft law to protect the rights of legal entities and individual entrepreneurs during the implementation of state control, supervision and municipal control in part of exercising the powers of regulatory and supervisory agencies during business inspections. “The document contains a ban for supervisory authorities to require documents and information during business inspections that have already been provided previously or are available to the authorities. It is also forbidden to demand the information contained in state or municipal information systems, registries or registers from entrepreneurs”, - said the chairman of the State Duma Committee on Economic Policy, Innovation and Entrepreneurship Development Igor Rudensky.

He emphasized that “this will reduce the administrative burden on business and the cost of doing business in relations with authorities”.

The objectives to mitigate the limitations for business were set by Russian President Vladimir Putin in his December Address to the Federal Assembly and, according to Igor Rudensky, this draft law aims to implement them.

As part of work aimed at formation of a quality business environment in Russia, a draft law on the contract system in the procurement of goods, works and services for state and municipal needs in part of the ban on participation of offshore companies in the procurement, was passed in the first reading. This is about banning “to purchase goods and services for government needs from companies under offshore jurisdiction”. “These organizations have a dual exchange control system. Many offshore jurisdictions have quite low interest rates of taxes or they are not charged at all. The Public Procurement Commission will have to check if a company is involved into the offshore. If such information is found, the Commission rejects the application of the participant and excludes him from participating in the tender”, - said the deputy.

According to Igor Rudensky, the draft law aims to support domestic producers and encourage import substitution.

“All these complex legislative measures will stimulate the formation of a favorable business climate and reduce administrative pressure on business”

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