Russian business climate needs radical overhaul to attract investors

Author: Alex Freedmann Section: Major Events of the Month

Issue: End-of-year 2011 report, Vol. 6. No.10

Tags: Investment climate

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Unattractive Business Environment

President Dmitry Medvedev has declared Russia's current investment climate a poor business environment in need of urgent radical overhaul so as to create more favorable conditions for investors. “There are standard business principles based on national regime and minimal administrative barriers in civilized countries. Business is business everywhere. Therefore, we need to dramatically improve our investment climate to make it attractive for Russian and foreign business,” he said. “Legislation is not all that is needed. We also have to lose the illusion that good laws can radically change this situation as good laws must be superimposed on normal bureaucrats.”