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Small Businessmen Burdened by Petty Bureaucracy

Published: September 18, 2013 (Issue # 1778)



  • For dentist Emelyanov, Russias economy is being held back by its rules and regulations.
    Photo: Alexander Zemlianichenko / AP

MOSCOW (AP) Dentist Sergei Emelyanov is being smothered in Russias red tape.

Every day, Emelyanov and his staff have to take time out from tending patients to fill out official logbooks on health and hygiene. Its repetitive and pointless work but required by law and vital if Emelyanov, who has co-owned his Moscow clinic since 1992, wants to avoid a hefty arbitrary fine from inspectors.

Along with many of the small struggling businesses in Russia, Emelyanov knows this comes with the territory.

Regulatory authorities, armed with current rules and regulations, are free to do whatever they want with us, he said. Every inspecting body is tailored to levy fines from businesses. Even if you abide by all the rules, they will always find something to fine you for.

There are growing concerns that Russias burdensome bureaucracy and corruption are holding back the countrys economy, which has become increasingly reliant on massive oil and mining companies.

According to the International Monetary Fund, Russia is the worlds eighth-largest economy just behind Brazil with an annual gross domestic product of some $2 trillion. While it exports a large part of Europes and Asias energy needs, it also helps fill in the order books of companies across the globe.

However, the countrys economic growth has been on a downward path since the start of last year. The Economic Development ministry estimates it will only be 1.8 percent this year the slowest rate since 1999. Economic Development Minister Alexei Ulyukayev has also warned of the risk of recession.

With Russian oil and gas exports slowing, the best hope lies with small and medium-sized businesses, Ulyukayev said in an interview with the Kommersant business daily last month. Russian exports can no longer be the key driver of economic growth, he said.

But businessmen like Emelyanov claim the government isnt backing its words with action.

When President Vladimir Putin was campaigning to win his third term as president in 2012, one of his promises was to increase the pay and benefits of state employees who make up to 40 percent of Russias total workforce. Soldiers saw their pay more than double last year, while teachers got a 14 percent raise. While this lavish spending has improved the lives of millions of Russians, it has put a strain on the countrys budget.

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ALL ABOUT TOWN

Wednesday, Oct. 1


The St. Petersburg International Innovation Forum 2014 kicks off today at Lenexpo, where it will be presenting the latest and greatest ideas until Oct. 3. Focusing on economic development and the decisions and measures necessary to encourage development in Russias most important industries, the event is a possibility to discuss the innovations currently available in a variety of fields.


Representatives of the Russian and international media industries arrive in St. Petersburg for the first ever International Media Forum being hosted by the city until Oct. 10. With a variety of events on tap, including workshops, lectures and film screenings, the event plans to reemphasize the citys reputation as the countrys culture capital and as an emerging market and location for the visual arts.



Thursday, Oct. 2


The celebration of the bicentennial of the birth of Mikhail Lermontov continues with todays free exhibition in the citys Lermontov Library at 19 Liteiny Prospekt. Titled Under the Rustling Wings, the temporary exhibition will feature the costumes and scenery used in the 1917 production of Lermontovs play The Masquerade, which he wrote in 1835 when he was only 21 years old.



Friday, Oct. 3


Learn more about how to manage and evaluate employee performance during SPIBAs Human Resources Committee meeting this morning on Employee Assessment: Global and Local Trends. Starting at 9:30 a.m., the discussion will touch on such topics as the partnership between HR and business, reliable assessment strategies and more, with Tatiana Andrianova, the head of the SHL Russia and CIS branch in St. Petersburg, as the featured guest. Confirm your participation by Oct. 2 by emailing office@spiba.ru or calling 325 9091.


AmChams Procurement Committee Meeting is at 9 a.m. this morning in their office in the New St. Isaac Office Center on Ulitsa Yakubovicha.



Saturday, Oct. 4


Wine and cheese lovers will get their chance to revel during Scandinavia Country Club and Spas Wine Market Weekend. Going on today and tomorrow, wining diners can listen to live music, take part in culinary classes and, of course, sample a variety of fine wines from around the world. The cost of admission is 400 rubles ($10.30) for adults and 200 rubles ($5.15) for children.



Sunday, Oct. 5


Look for the latest fall fashions at the Autumn Market today in Freedom Anticafe at 7 Kazanskaya Ulitsa. The minimarket plans to offer clothes more flattering than the puffy jackets that are a staple of the citys cold-weather fashion, while offering the same amount of protection from the biting winds blowing off of the Baltic.



Monday, Oct. 6


SKA St. Petersburg, the citys KHL affiliate, welcomes Slovakian club HC Slovan in a match-up tonight at the Ice Palace near the Prospekt Bolshevikov metro station. The puck drops at 7:30 p.m. and tickets can be purchased on the clubs website or in person at either the arenas box office or the clubs merchandise store on Nevsky Prospekt.



Tuesday, Oct. 7


Learn more about Russias energy industry at the St. Petersburg Energy Forum that begins today and runs through Oct. 10. Attracting industry experts and political and business representatives, the forum plans to welcome more than 350 plus companies and their representatives to discuss the future of Russias largest economic sector.



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