The Team of the Acting Governor Wants to Free Businesses From Administrative Pressure

Vice-Governor Alexander Remiga said that the region's authorities are working to create a favorable climate for business

Vladimir entrepreneurs continue to complain about the abundance of scheduled inspections, excessive criminal prosecution under economic articles related to VAT refunds, violations of the terms of criminal proceedings and excessive administrative burden. Alexander Remiga, the acting first deputy governor, told about it in his speech at the session “Protecting Business: Balance between Economic Development and Law Enforcement”, held within the framework of St. Petersburg International Economic Forum.

SPIEF (economic forum) is held in St. Petersburg on June 15 – 18. The delegation of the Vladimir region is headed by the head of the region Alexander Avdeev. It is no exaggeration to say that thoughts and theses expressed by Alexander Remiga clearly reflect not just his personal position, but the position of the entire team of the Acting Governor.

As of today there are more than 50 thousand of small and medium business entities in the Vladimir region, which employ almost 220 thousand people of the region. The sector forms 30% of the gross regional product of the Vladimir region and is a strategically important driver of economic development. For the entrepreneurial sector and the regional economy with it to grow, investments are required. They, in turn, are more likely to go where business is more free from administrative pressure from regional and local administrations, as well as from all kinds of law enforcement agencies.

A representative of the Vladimir region administration explained that representatives of the business community send appeals about excessive administrative pressure to the regional commissioner for entrepreneurs, to the public organization “Opora Russia” and to the regional chamber of commerce and industry. Remiga added that the number of such complaints in relation to the total number of small and medium businesses in the region is small:

“This indicator shows that the power pressure on business in general in the Vladimir region is at a low level, which means that the region is quite attractive for various kinds of investors.”

The Acting Deputy Governor of the Vladimir region reminded that the indicator “Administrative pressure” is taken into account in the National rating of the state of the investment climate in the subjects of the Russian Federation. The index of the same name was introduced in 2018 among the tools of influence on business by Boris Titov, Russian Presidential Commissioner for the Protection of Entrepreneurs’ Rights.

Subjects of the Russian Federation are guided by this index to adjust law enforcement and the activities of control and supervisory bodies. In the rating of regions based on this index, the Vladimir region has dramatically improved its position. At the end of 2021, the region was ranked 12th, whereas in 2019 it was only 26th.

Alexander Remiga

“The joint study of index indicators by the leadership of the Vladimir region, the prosecutor’s office, the heads of the territorial departments of the federal authorities and the Commissioner for the Protection of Entrepreneurs’ Rights showed great opportunities to influence the situation. In particular, almost on all control and supervising bodies the share of warnings increased”, – Alexander Remiga told.

“Special conditions,” which emerged after February 24, were not forgotten in his speech. The country is forced to build a new logistics chain, many businesses are suffering from cash gaps. Foreign investments have practically stopped, and imports and exports are almost completely reoriented. All this put an additional and quite unexpected burden on the shoulders of entrepreneurs. To help them in the current difficult situation, the regional administration has already adopted two packages of support measures.

At the same time, serious problems in the private sector persist. They include an abundance of unplanned inspections, an excessive number of criminal prosecutions under the so-called “economic” articles, violation of the terms of court proceedings and other excessive administrative burdens.

The Vladimir official pointed out the great potential of the digital platform ZaBusiness.rf, which is an electronic resource for receiving appeals from businessmen concerning law enforcement pressure on them. Remiga believes that the functionality of the site should be expanded. 

So, according to a representative of Avdeev’s team in addition to receiving appeals about the activities of law enforcement agencies the portal could collect applications from entrepreneurs about the quality of work of all the authorities in the provision of public services (including access for entrepreneurs to work with government contracts) as well as on the effectiveness of measures of state support for business. Besides if the offers of Vladimir delegation will be accepted, businessmen can complain and on work of the resource supplying organizations and natural monopolies, on poor quality service from their side and unreasonable overestimate of tariffs. 

It was also proposed to organize the portal not only in the online mode, but also offline. In addition to receiving and reviewing appeals, according to Alexander Remiga, the platform could organize educational and scientific events for entrepreneurs, their consultative meetings with representatives of the authorities and law enforcement agencies, and even expert hearings on the impact on business of normative acts that are passed. In fact, it is not so much about the activities of the portal as it is about creating a new state structure to protect entrepreneurship.

Of course, business representatives would be happy to expand the opportunity to protect themselves from “raids” by various government agencies. However, all kinds of law enforcement agencies may not be happy with the additional restriction of their powers. It should be reminded that conflicts with law-enforcement agencies, according to experts, were the basis of the problems that two predecessors of Alexander Avdeev – Svetlana Orlova and Vladimir Sipyagin – acquired in the region. The desire to protect businesses that pay taxes to the regional treasury is understandable, but will Avdeev’s team end up in the same problematic situation?

The Acting First Deputy Governor of the Vladimir region stressed that today it is important to consider the issues of administrative pressure from both the business community and from the power structures, to discuss systemic problems together and try to find solutions for them.

Recall, in 2019, the regional branch of the organization “Opora Russia” reported a reduction in the number of small and medium-sized enterprises in the Vladimir region for the year by 4.7%. Among the reasons were the growth of VAT to 20%, increased administrative barriers and increased pressure from the inspection authorities and law enforcement agencies.

In the fall of 2020, Alexander Remiga announced a decrease in the “Administrative Pressure Index” for entrepreneurs. The Acting Deputy Governor noted that the number of administrative fines imposed and their total amount decreased, as well as the number of warnings issued decreased.

Original publication

Exit mobile version