Russia has a new government but needs a new economic model and everyone is beavering away at the new plan. Russia's Ministry of Economic Development and Trade last week handed in its first draft of the roadmap to remake Russia Inc.
The ministry's plans focused on measures to ease red tape in the construction and power supply industries, as well as the passage of goods through customs, Andrei Nikitin, general director of the Strategic Initiatives Agency, which drafted the documents, said on Friday.
These are key measures as they the things Russia is worst at in the World Bank's Ease of Doing Business survey where Russia is ranked 120 from about 180 countries. President Vladimir Putin promised at the start of this year to lift Russia to 20 place by 2018 so clearly the ministry is kicking off with some of the most relevant reforms for this goal. Analyst say that just fixing these two things will immediately lift Russia to 80 place on the ranking.
The draft documents seek to cut the number of procedures and time necessary to receive permits for construction, connect to electric grids, and transport goods through customs.
The number of permissions necessary to start construction will be reduced from the current 51 (the highest number in the world) to just 11 and the time to receive the approval will be reduced from 423 days to 56, according to the drafts.
Connecting to electric grids is now to be done within 40 days instead of a previous 281 days. The number of procedures, which businessmen are required to go through, is to halve to five.
A period of time spent in customs is also to be cut three fold and the number of procedures involved in customs is to halve.
The World Bank was upbeat on the changes and said Russia has already risen four places in its ranking, just days before the St Petersburg economic forum kicks off, where the Kremlin is expected to show case a lot more reform.
"But according tothe World Bank we are among the25 countries that made themost progress over thepast year onchanging theregulatory environment," Deputy Economic Minister Stanislav Voskresensky said, RIA-Novosti reported.