BUSINESS COMMUNITY: THERE WILL BE NO STABILITY IN RUSSIA EVEN IN 10-15 YEARS

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MOSCOW, November 25 (RIA Novosti) - The Expert Institute of the Union of Industrialists and Entrepreneurs has presented a report on the main problems hindering the development of Russian business. Two years ago corruption would have topped the list of the report, whereas violation of laws by federal authorities is what makes the business community suffer at present, the Novye Izvestiya reports.

The structure of crucial problems facing businessmen has changed essentially lately, Andrei Neshchadin, CEO of the Expert Institute, said. Red tape, tax regulations and skills of the personnel are the main problems now, which have outrun scarce funding and corruption, actual a couple of years ago.

Bureaucrats are blamed for infringing the rights of enterprises, first of all. This trend was indicated by 38% of businessmen (the Expert Institute prepared the report on the basis of a survey of small, medium and big business representatives). Businessmen believe the main violators of their rights are federal authorities (39%), regional authorities (30.2%) and municipal administration (20.8%). Among others are rivals, counteragents and mass media.

To give an example of pressure increasingly exerted by federal authorities Neshchadin mentioned amendments to the Administrative Code, currently discussed by the State Duma. Certain federal agencies are authorised to shut down an enterprise for 90 days for failing to submit necessary documents.

It has been stressed in the report that businessmen tend to resort to civilised ways of adjusting conflicts, via arbitration courts and negotiations. However, some 40% of businessmen are sure that the ruling would be in favour of authorities in case of a conflict between an enterprise and authorities. "Evidently, this is an effect of the Yukos story," Neshchadin was quoted as saying.

More than half of front-office representatives believe that there will be no stability in Russia even in 10-15 year, neither economic, nor political, nor social. Businesses are hesitating, which is a stumbling block in the way of investment in major projects," the CEO of the Expert Institute summed up.

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