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Russia rises by 20 places in “Doing Business-2014” ranking

1st of November 2013

The country is ranked 92nd in the world annual ranking “Understanding Regulations for Small and Medium-Size Enterprises”

The country is ranked 92nd in the world annual ranking “Understanding Regulations for Small and Medium-Size Enterprises”

According to “Doing Business-2014”, Russia is ranked 92nd in the world annual ranking of the World Bank (WB) and the International Finance Corporation (IFC), Russia rose by 20 places compared to last year’s 112th place in “Doing Business-2013” and ranks between Barbados and Serbia.

“Doing Business 2014: Understanding Regulations for Small and Medium-Size Enterprises” is the 11th edition of the Doing Business series. The report assesses regulations affecting domestic firms in 189 economies and ranks the economies in 10 areas of business regulation, such as starting a business, resolving insolvency and trading across borders. This year’s report data cover regulations measured from June 2012 through May 2013.

Singapore topped the global ranking on the ease of doing business. Joining it on the list of the top 10 economies with the most business-friendly regulatory environments are Hong Kong SAR, China; New Zealand; the United States; Denmark; Malaysia; the Republic of Korea; Georgia; Norway; and the United Kingdom.

The authors of “Doing Business-2014” identified Russia's success in carrying out the five reforms: facilitating conditions for starting a business, simplified construction permits, connection to the electricity grid, registration of property rights and improvement of international trade procedures.

Compared with last year's results, our country has achieved the greatest success in connecting to the electricity networks (rose by 67 places to the 117th place), registering of property (rose by places to the 17th place), and opening of new businesses (rose by 12 places to 88th place).

 “Russia has simplified starting a business by abolishing the requirement to have an authorized bank card to open an account. Getting electricity has also being made less costly by setting the standard tariffs for connection to networks and eliminating many procedures required before”, - the report says. The procedure of connection itself in Russia takes is 162 days, while the world average is only 26 days.

Registration of property rights in Russia has become easier by streamlining procedures and the introduction of time limits for the consideration of the relevant statements. Now, in Russia, according to the ranking, it takes an average of 22 days versus 12 days in Rwanda and 45 days in the Ukraine.

In the field of international trade our country has implemented electronic system for submission of import and export documents, and reduced the number of inspections, which resulted in jumping five places up to 157th place.

Russian tax administration for the year rose by 8 places up to 56th place despite the fact that the World Bank and the IFC did not record any reforms in this field.

The indicator that considers the enforcement of contracts in Russia rose by one place and Russia joined top ten countries on this indicator. Investor protection has also improved slightly – rise by two places up to 115th place.

At the same time, Russia could not achieve serious progress on such indicator as obtaining construction permits with 178th place in the ranking.

On credit availability Russia dropped by 5 places to 109th place, on bankruptcy procedures - by two places up to 55 places.

Former Minister of Economic Development Andrey BELOUSOV before leaving office forecasted: Russia may rise up to 50th place in Doing Business according to the results of 2013 if all the measures in the frames of approved “road maps” under the National Entrepreneurial Initiative are implemented.

Meanwhile, according to the Agency for Strategic Initiatives (ASI), road maps for improving business climate in Russia are completed by one-half. The leader in the implementation of road maps is the Ministry of Energy. The “outsider” on the implementation of road map in the field of road construction is the Ministry of Regional Development due to the change of leadership in the Ministry and the State Construction Committee.

Four new road maps on improving tax administration, on improving the assessment activities, on access of non-profit organizations to the social sector and on the national system of competences and qualifications will be prepared by the end of the year.

Russian government currently approved nine “road maps”, which include 520 initiatives. (According to the Doing Business, Prime)

Источник: Doing Business, research