Russian Prime Minister Mikhail Mishustin presented President Vladimir Putin with an anti-crisis plan to overcome the consequences of Western sanctions imposed in response to the military operation in Ukraine. The government proposes to reduce the number of procedures for businesses, as well as extend the validity of licenses. Mr. Mishustin also said that the government is proposing to introduce external administration for foreign companies if they leave the Russian market. Vladimir Putin supported the idea.
Mikhail Mishustin stressed that most foreign companies have temporarily suspended work in Russia, and also stated that they would retain jobs and wages during the suspension period.
The government will introduce external administration over companies that are finally going to leave the Russian market. “If foreign owners unreasonably close the company, then in such cases the government proposes to introduce an external administration. Depending on the decision of the owner, it will determine the future fate of the enterprise. At the same time, the key task will be to preserve the profile of the organization’s activities and jobs,” said Mr. Mishustin.
The government will also help companies develop new supply chains. In addition, the Cabinet proposes to extend the validity of business licenses and reduce the number of procedures for companies to reduce costs. Mikhail Mishustin stressed that freedom of business should remain a basic principle within the country.
The Cabinet is also developing measures to attract IT specialists. In particular, the industry will be exempted from paying income tax and inspections by regulatory authorities.
“We have identified as the main tasks the protection of the domestic market, ensuring the smooth functioning of enterprises through the elimination of violations of logistics and production chains and, of course, maintaining employment,” Mikhail Mishustin said.
For more information on how Russia responds to external restrictions, see Kommersant’s “Conveyor of Counter-Sanctions” article.