Foreign business evaluates the business climate in Russia before the crisis

© RIA Novosti / Vladimir Traveloperator in photobacteria bills. Archive photoForeign business evaluates the business climate in Russia before the crisis© RIA Novosti / Vladimir Traveloperator the image Bank

Assessment of business climate in Russia by foreign business rose to pre-crisis 2013: the number of respondents, marking a positive trend, has increased almost in one and a half times and amounted to 33% in 2017, follows from the research conducted by the Russian Union of Industrialists and entrepreneurs (RSPP) and FleishmanHillard Vanguard/KG Horta.

However, still very negative entrepreneurs appreciate the level of administrative barriers in the country, nearly 2 times increase in the number of respondents reporting corruption in government as a factor impeding the development of business in Russia.

Annually RSPP conducts research on the assessment of the business climate in the country. Since 2011 to include a unit devoted to the assessment of Russia’s foreign investors operating in the country. Respondents answer questions about the business sentiment, business climate, its prospects and the current challenges they face.

«Foreign investors in 2017, reported a significant improvement in the business climate 33% of respondents noted the positive dynamics of the business climate in the Russian Federation. In previous years the figure was significantly lower — 23% in 2016 and 6% in 2015. Thus, the share of pessimistic assessments fell by more than two times and amounted to 22% of respondents against 53% in 2016», — stated in the results of the study, which examined RIA Novosti.

So, the leaders in 2017 steel areas such as telecommunications (6 points in 2017, 5.5 points in 2016) and heating system (5.7 in 2017, 4.8 points in 2016). Also the high position occupied by the banking system (5.1 points in 2017, 4.4 points in 2016), educational institution (5 points in 2017, 3.4 points in 2016) and airports (5 points in 2017, and 5.4 points in 2016).

The greatest positive dynamics demonstrated education and roads (4.7 points in 2017, and 3.5 points in 2016). The study also notes that outsiders rankings in 2017 became available to real estate (3.4 points in 2017, and 3.2 points in 2016), while maintaining a positive trend. All other areas such as exchange, system water, wastewater and gas, Railways, insurance, electricity, and leasing services as a whole was estimated by the respondents is above average and amounted to no less than 4.1 points.

Among the key problems hindering the development of entrepreneurship in Russia, foreign businesses have identified a lack of key personnel, which grew compared with the year 2016 almost 1.5 times (67% in 2017 and 47% in 2016).

«Another very important issue according to respondents, is corruption in government — they increased by almost 2 times and amounted to 56% (vs. 35% in 2016). For several years remains strong, the factor of high administrative barriers (48% in 2017 and 47% in 2016). The factor of political uncertainty remains at a substantially lower position after the peak in 2014 (82%) and in 2017 amounted to 14% (29% in 2016),» reads the study.

Speaking about the factors that can stimulate business based on the principles of social responsibility, the respondents mentioned the increasing transparency of processes (67% in 2017, 60% in 2016) and tax cuts for the responsible entrepreneurs (58% in 2017, 45% in 2016).

The week of Russian business (NRB) will start in Moscow on Monday, February 5, one of the key themes of the XI Russian business Week will be the digital economy.

The Agency «RIA Novosti|Russia today» is the General information partner of the Russian business Week of the 2018 and provides online broadcast of the news forum on the site. Organizer NRB-2018 is the Russian Union of Industrialists and entrepreneurs.