News – Russian Government

M. Mishustin: “It is necessary to help domestic business. Create an environment in which it is convenient to create and implement projects. And the presence of equal conditions for entrepreneurship is one of the fundamental components of success.”

Opening remarks by Mikhail Mishustin:

Good afternoon, colleagues!

We continue a series of strategic sessions aimed at further economic development. We just took part in the “Made in Russia” forum. We discussed topics that are of interest to our exporters. Including such an important issue as ensuring equal conditions for doing business.

Now we will take a closer look at the situation in this area. It directly affects technological and economic dynamics.

Healthy competition allows our businesses – even leaders in their segments – to continue to move forward. Constantly improve the quality and attractiveness of your product. Improve production processes and update equipment. Train employees and implement best practices. And increase labor productivity.

Such work is especially relevant when the country faces serious challenges, including those related to possible changes in global trade. And this factor is very important to take into account.

It is necessary to help domestic businesses. Create an environment in which it is convenient to create and implement projects. And the presence of equal conditions for entrepreneurship is one of the fundamental components of success.

This is also important for maintaining the dynamics of domestic production, especially the manufacturing sector, which has been the driver of the economy for a long time. After two years of accelerated growth, its output increased by almost 20%. This year the pace has decreased slightly, at the end of eight months it amounted to 3.2%. The main contribution comes from mechanical engineering, where the figures are close to 11%.

Double-digit indicators are also recorded in such technological areas as “computers, electronics and optics”, “medicines and medical materials”.

The growth of the economy as a whole is also supported by the construction industry and agriculture.

At the end of the year, the implementation of the current National Competition Development Plan will be completed. Within its framework, constant monitoring of food products was carried out. We worked with retail chains. It was possible to achieve a multiple reduction in markups on so-called first-price products – the most affordable in their segments.

Exchange trading expanded to balance supply and demand. The saturation of pharmacies with medicines was actively underway.

The Government recently approved a new plan. It is designed for the period until 2030 and is aimed at helping to achieve the national goals set by the President.

There is also a project “Development of Competition”. Its main task is to form an effective system in this area at all levels: federal, regional and municipal.

There is still much to be done. It is important to ensure that government policy instruments encourage businesses to introduce modern, innovative methods of work.

To do this, we need not only to look at what is happening inside the country, but also to actively interact with our trading partners abroad. Level conditions within the Eurasian Economic Union. Differences still remain in indirect payments and in approaches to administration. There are also questions and differences in technical, sanitary and veterinary standards.

There are cases when minimal control measures essentially encourage the import of goods from third countries into the Russian Federation without proper taxation. Every year, mobile customs teams identify significant volumes that show signs of evading value added tax.

Payment is made either in cash or through digital currencies. And subsequent implementation is through those who use the simplified system and, accordingly, do not pay indirect taxes.

Our key task is to develop conditions under which the existence of such gray schemes will become impossible.

On the international front, as many present know, we are working on bringing together customs risk management systems in the states that are members of the EAEU. As well as rules in other areas of control and supervisory activities.

This is a rather labor-intensive and painstaking process. But we need to do it, it is necessary. It is important to create competitive opportunities for market participants and move along the entire chain. From control of the legality of the import of goods and the formation of a fair input cost to the transparency of all monetary transactions in Russia, regardless of the form of their execution.

It is also necessary to close loopholes in labor market regulation. So that there is no substitution of labor relations when a legal entity attracts self-employed people to work, thereby reducing tax deductions for social insurance.

The special regime for the self-employed continues. But here it is important that there is no abuse when using it.

The fight against illegal lending, which contributes to the flow of borrowers and lenders into the gray zone, deserves special attention. And it is simply necessary to suppress illegal activities of this kind.

Today we will discuss in detail what other steps are necessary to ensure equal conditions for doing business – for those enterprises that operate in the country and those that are developing foreign sites. With a common goal: increasing the efficiency of our economy.