Rieker
Business in Russia
12.05.2012 1990

Business in Russia

Russia turned out to be one of the cheapest countries for doing business

Russia has overtaken the United States in the ranking of the cheapest countries for doing business. Taking fourth place from 19, Russia lost only to India, China and Mexico. Relatively low costs for electricity and gas helped to achieve a high place in the ranking of the country.

By 2018, Russia should rise from 120th to 20th place in the Doing business ranking, newly elected President Vladimir Putin instructed the government immediately after the inauguration. The least effort in this “stepwise” step is the problem of reducing the cost of doing business. According to a KPMG study compiled on the basis of an assessment of the cost of labor, insurance, connection to communications, transportation costs, taxation and fundraising, Russia ranks fourth out of 19 in terms of the cheapest business.

As a baseline, the experts took the cost of entrepreneurship in the United States. In comparison with it, China and India were recognized as the most "profitable" countries, where, due to low wages, business costs were about 25% lower. Among the developed countries, the leaders were the United Kingdom and the Netherlands (where entrepreneurs' expenses turned out to be almost 5% less than in the United States). The most expensive business is in Australia (where an entrepreneurial initiative costs 3,7% more) and Japan (9,4% more). In Russia, the cost of doing business was 19,7% lower than in the United States. Among the fast-growing countries, Russia has become the leader in terms of attractiveness in terms of electricity and gas costs. "Bright spots" in the Russian economy were the IT market, where doing business is 39,4% cheaper than in the United States (the sector leader, China, - by 45,4%), and the professional services sector (60,4% of the expenses in the USA).

On the other hand, experts note that the high cost of renting production and office premises is a sore spot for entrepreneurs. The country ranks first in the first indicator, and second in the second (after Great Britain).

The cost of doing business is not a decisive factor for making a decision to open a business in a particular country, says Elena Khromova, BDO partner in Russia. According to company research, among the main problems cited by company leaders, as a rule, is the problem of personnel selection. In addition, business in Russia is negatively impacted by high administrative costs and an unregulated tax system. “As a result, Russian enterprises open production in China and India, where business is cheaper,” she said.

For business, it is not costs that are more important, but payback and comfortable conditions, agrees FBK expert Igor Nikolaev. Against this background, Russia looks unattractive. "In the first quarter of this year alone, $ 35,1 billion flowed out of the country. Despite the economic growth, entrepreneurs are not satisfied with the conditions for doing business in Russia," he says. RBC daily writes about this.

Russia turned out to be one of the cheapest countries for doing business Russia overtook the United States in the ranking of the cheapest countries for doing business. Taking fourth place from 19, Russia lost only to India, ...
5
1
Rating
Euro Shoes Exhibition

Latest News

Expo Riva Schuh & Gardabags took place in Italy

The January exhibition of shoes, bags and accessories Expo Riva Schuh & Gardabags in Italy has ended. The event was attended by 430 exhibitors from more than 30 countries, the exhibition received 3500 visitors from 86…
21.01.2022 212

OR Group made a technical default on bonds

OR Group (former Obuv Rossii Group of Companies) failed to redeem bonds for 0,6 billion rubles on time, allowing a technical default. The holder of the bonds is Promsvyazbank (PSB), with which negotiations are underway. If they fail, the group...
21.01.2022 252

The collaboration between New Balance and artist Joshua Wades has released an updated version of the New Balance 57/40

In the design of the new New Balance 57/40 NB model, created in collaboration with the artist Joshua Vaidsaom, there are flecks - traces of paint that are reminiscent of the artist's youth and his passion ...
20.01.2022 195

MICAM postponed to March

The organizers of Europe's largest international footwear exhibition MICAM have announced the postponement of the date of the event. The exhibition will be held from 13 to 15 March instead of the originally scheduled dates - from 20 to 22…
20.01.2022 278

Detsky Mir recycled about 3 tons of footwear and textile waste

Detsky Mir Group and Dmitrovsky RTI Plant, the largest waste processing plant in Russia, summed up the results of the campaign “New life for unwanted clothes and shoes with benefits for you” for 2021…
20.01.2022 376
When you sign up, you will receive weekly news and articles about the shoe business on your e-mail.

To the beginning