Business Russia LLC: Alexey Repik and Mikhail Sutyaginsky spoke on the Russian economic recovery at the meeting of All-Russia People's Front

The working meeting of the All-Russian Popular Front (ONF) coordination center for the economic recovery was held On June 4.

 Business Russia was represented by the chairman of the organization Alexey Repik and member of the coordination council Mikhail Sutyaginsky. The main topic of the meeting was the National Action Plan to recover the economy, employment and incomes of the population, developed by the Russian government to overcome the crisis. Around 70 experts such as the heads of industrial enterprises, industry unions, business associations and public organizations became the participants of the meeting. The distant meeting was attended by about 70 experts representing the heads of industrial enterprises, industry unions, business associations and public organizations.

The event was moderated by Ilya Semin, director of the ONF coordination center on economy recovery.  “The national plan should pose more ambitious challenges but not just to recover the economy and move to economic growth as soon as possible,” he said. According to him, a powerful investment block is required for the inflow of new investments and the creation of high-performance jobs. “We will consider the opinions of industrial enterprises, expert communities and business associations and submit our proposals to the government,” summed up Ilya Semin.

National plan contains a well-developed block with measures to support citizens in the current difficult conditions; however, from the economic perspective the plan has no groundbreaking ideas which could contribute to its recovery and growth. Further during the discussion Alexey Repik also noted that plan does not correlate with national projects to this date.

“It should be noted that one very important point appeared in the plan, which can really stimulate the growth of investment activity. We are talking about the possibility of compensating the costs of the production infrastructure in the amount of incoming taxes,” said Alexey Repik. He also proposed to take care about citizens’ lives and health by operative introducing hospital-substituting forms of medical care, which should be taken into account in the mandatory medical insurance system.

Mikhail Sutyaginsky announced a series of proposals meant to support the real economy. In his opinion, at present the government should support non-resource exports by lowering tariffs of railway transportation for petrochemists thus fulfilling the goals of the “International cooperation and export” national project. Many enterprises have increased production volumes and currently they are unable to export finished products. It is also necessary to correct the commission fees of the products of Russian EXIAR Insurance Agency, because currently they are higher than those of European agencies. He also touched on the issues related to the implementation of the investment projects in the industrial sphere, including the procedure and timing of the expertise and the use of financial support tools.

The national plan for economic recovery, employment and income of the population is designed for 1.5 years; it contains more than 500 points and contemplates the GDP growth rate at the level of minimum 2.5% per year by the end of 2021.

The Prime Minister Mikhail Mishustin presented the draft plan to President Vladimir Putin on 2^nd of June. The President of the Russian Federation pointed out that the participation of the business community is inevitable in the modification of the plan: “We have agreed to continue working with business associations. We always do this, but in this situation, this co-working is even more required”.

Source: Business Russia LLC, 05.06.2020

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