Vladimir Putin: Business needs support for crisis

01.04.2020

The President supported the shift to the “left” of public procurement and other proposals that were announced on Thursday during his meeting with entrepreneurs by the builder Dmitry Panov, general director of Trust Development, and the head of the St. Petersburg branch of Delovaya Rossiya.

“We believe that it is possible to think about those public procurements that are planned for the 3rd and 4th quarters of 2020, to be implemented in the second quarter of 2020,” Dmitry Panov expressed the wishes of many housing developers.

He also asked the President to consider the possibility of providing advance payments in the amount of 50 to 75% of the transaction amount as part of settlements by state structures and state-owned companies with small and medium-sized businesses.

“This would be a very significant help,” said the head of the development company.

Vladimir Putin called Panov’s proposal a good idea and promised to think about how to implement it as part of the state program for the participation of small and medium-sized enterprises (SMEs) in public procurement.

“Your proposal to“ shift to the left ”, as they say, the volume of purchases, of course, they must meet the needs of companies and the state, but on the whole you can definitely think about it, this is a good idea,” concluded the President.

He also added that if such a measure is taken, it is necessary to exclude possible overlays when the goods necessary for the customer in November suddenly arrive much earlier – in March or April.

During the meeting between the head of state and entrepreneurs, Deputy Prime Minister Andrei Belousov (pictured) said that next week the authorities together with Sberbank and VTB plan to launch a pilot business lending project.

We are talking about providing short loans at a state-subsidized rate up to zero percent to pay salaries to employees of commercial enterprises while they are in quarantine.

“Because we well understand that small businesses do not have any collateral now,” Belousov explained.

Recall that on Wednesday, Russian President Vladimir Putin, speaking to the Russians, announced a number of important measures of state support for business during the quarantine period caused by the spread of coronavirus infection. Among them:

“adequate taxation” of all payments of income going to offshore: not 2%, but 15%;

  • reduction of the premium rate for small and medium-sized businesses from 30% to 15%;
  • deferral of SME taxes (excluding VAT);
  • Introducing a 6-month moratorium on filing creditors’ applications for bankruptcy of companies and debt collection.

On Thursday, opening the next meeting of the Cabinet of Ministers, its head Mikhail Mishustin (pictured) promised all the above measures proposed by the President to be approved by the relevant decisions of the Government.

“The government will get the right to grant a deferment to small and medium-sized businesses in taxes, and we will do it immediately as soon as the relevant law is completed,” Mishustin said.

Source: Unified Register of Developers