Monthly News Digests
Russian Prime Minister Dmitry Medvedev met with the heads of the country’s leading steel companies to discuss the key challenges the industry currently faces. An unfavorable global steel market situation and a decelerating demand in the sector were named among the central issues leading to a rapidly declining profitability of the Russian steel sector along with excessive debt load of the companies. The Government suggested a number of measures to alleviate the situation including stimulated steel consumption, introduction of restructuring programs and easing the increased regulatory burden on the steel sector.
Source: Government of Russia, Vedomosti
Russia has climbed up 19 positions in the World Bank’s Doing Business rankings from 111th to 92nd place. The World Bank praised Russia's performance in the speed of being hooked up to electric grids, the streamlining of property registration procedures and the ease of opening of new businesses. Experts note that the country has until now focused on the red-tape elimination while further progress would require substantial institutional and legislative change.
Source: RIA Novosti
The Russian Parliament has drafted a law changing the system of property tax in the country which would lead to a substantial 200-400% tax burden increase for industrial enterprises. The initiative follows a similar reform in the land tax with comparable consequences for the industry. Several thousand legal cases on the increased land tax are still in process in numerous regions of Russia.
Source: State Duma, Vedomosti
Russia’s Prime Minister Dmitry Medvedev met with the heads of the country’s leading steel companies to discuss the key challenges the industry currently faces. Mr.Medvedev highlighted a rapidly declining profitability of the Russian steel sector and a decelerating demand in the sector. Government officials and industry representatives elaborated a number of initiatives aimed at stimulating domestic steel demand, easing the regulatory burden and seizing the opportunities provided by the country’s WTO membership.
Source: Government of Russia
The President of Russia announced the budget address which determines the main public finance priorities for the period 2014-2016. The address includes plans to invest state reserves in returnable infrastructure projects run on public-private partnership. During the St. Petersburg International Economic Forum the President also noted that $15blnof the national welfare fund will be invested in three key projects, including the high-speed railway from Moscow to Kazan.
Source: President of Russia website, Vedomosti