Russia rises to 28th place in doing business rating

24.10.2019

Russia rose from 31st to 28th place in the Doing Business 2020 World Bank ranking. It reflects the ease of registering companies, paying taxes, performing customs formalities and other standard business procedures in some countries compared to others. The first places are occupied by New Zealand, Singapore and Hong Kong.

With regard to Russia, the World Bank noted a reduction in terms of connection to electric networks (according to this indicator, Russia moved from 12th to seventh place in the ranking, this is the most successful direction for it), strengthening protection of minority shareholders, reducing the terms of VAT refunds, improving 1C programs used for paying taxes and salaries.

In the ranking, Russia remains the best of the BRICS countries, ahead of half of Europe, between Austria and Japan, the head of the Ministry of Economic Development Maxim Oreshkin told reporters. “But the competition, of course, is intensifying, China, from 46th place, moved to 31st place, is already running out of steam, so even in order to just maintain our position, we will have to move forward very actively,” said Oreshkin .

For this, the Ministry of Economic Development launched a mechanism for transforming the business climate in 2018 – on the basis of proposals from business associations in early 2019, a plan was approved to eliminate all sorts of redundant or outdated restrictions and requirements, shorten the procedure, create new services for entrepreneurs, switch to electronic document management, and so on. Further. It is anticipated that this plan will be constantly updated.

The Doing Business rating is not a complete reflection of the investment climate, in particular, it does not measure the stability of regulation, noted Oreshkin. “Frequent changes in conditions, low predictability, are what investors are most concerned about right now, because we have managed the procedures, now we need to cope with stability,” he concluded.

According to the “May” decree of 2012, the government was to take measures to improve the business environment, as a result of which Russia was to move in the World Bank ranking from 120th place (where it was then) to 20th place in 2018 .

Experts have repeatedly noted the convention of rating indicators. So, in Russia they are calculated only in Moscow and St. Petersburg. According to the most “problematic” indicator for Russia, “International Trade” (the Russian Federation remained in 99th place), export procedures are estimated for steel exports to Italy, import procedures for auto parts import from Germany.

Of the countries of the post-Soviet space, Georgia (seventh place), Lithuania (11th) and Estonia (18th) managed to advance farthest in the ranking.

Source: Rossiyskaya gazeta