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Pandemic Causes Closure of Less Than 3% of Enterprises in Russia

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BM.GE
19.08.21 15:00
652
The coronavirus pandemic and the restrictive measures introduced by the authorities to hold it back caused the closure of less than 3% of enterprises in Russia, Presidential Commissioner for Entrepreneurs' Rights Boris Titov said.
 
"Most entrepreneurs survived [the pandemic] even in the industries that suffered most. The majority of enterprises in the catering and events industry are working anyway. I can say that, according to our estimates, less than 3% of enterprises closed," Titov said, as reported by TASS. 
Meanwhile, the economic situation in Russia amid the pandemic remains difficult.
 
"Today, business cannot boast of their rapid growth. They are working in survival mode, in common with most sectors of the economy. Nevertheless, we have not died, we are alive," the official said.
 
The business ombudsman added that according to 60% of entrepreneurs the demand for goods and services has not returned to the pre-pandemic level.
 
"Moreover it (demand - TASS) is distributed in a very strange way - for some items, it is growing rapidly, for example, for air tickets, while, for example, food stores, retailers say that they receive fewer customers," Titov said.
 
Speaking about the problems that Russian business faces today, the ombudsman mentioned "a systemic problem," when small entrepreneurs are held accountable and are even prosecuted following inspections on the use of granted funds.
 
"They [entrepreneurs] take subsidies to create and develop their businesses, use them as intended, their business really works, but after that inspections start, nitpicking, red tape, and charges, sometimes related to prosecution, arise," Titov said.