Page 45 - BNE_magazine_06_2019

bne June 2019 Eastern Europe I 45
appreciate that," he said, according to a transcript of his speech.
Reactions
Meanwhile, a member of the Petro Poroshenko Bloc faction Ivan Vinnyk believes that Zelenskiy's statement
on the termination of the Rada's mandate does not effectively lead to
its dissolution, as this requires a formal presidential decree.
"On condition that such a decree is signed and promulgated, perhaps
the country will have to prepare
for elections, because President Zelenskiy's statement from the rostrum doesn't as such launch an election process," Interfax quoted him as saying the same day. "It can be launched by
a presidential decree calling early elections, which is signed and officially published... In this particular case, the discussion about the legitimacy [of Zelenskiy's decision to dissolve
the Rada] doesn't have any relation to elections, which might perhaps be held on July 14."
Some lawmakers from the People’s Front also supported Zelenskiy's move, according to local media.
Head of the Samopomich faction Oleh Bereziuk believes that the president's statement on the dissolution of the parliament is "a political and legal decision".
"If someone wants to contest it [...] If
a person is democratic, he shouldn't
be afraid of elections," Bereziuk told Interfax. At the same time, he admitted that the Rada needs "to see a decree, after which the Central Elections Commission should declare the results in several days". "The early election should be on July 21 or July 27," he said.
A legal battle looms
Zenon Zawada at Kyiv-based brokerage Concorde Capital wrote in a note
on May 20 that having made the declaration, Zelenskiy is likely to sign the presidential decree dismissing the Verkhovna Rada today.
"What remains unclear is whether he
Hegemony of state in Russian economy deepens, warns watchdog
bne IntelliNews
The process of the strengthening of the state's role in the economy has switched gears, as the state is no longer simply setting the rules of engagement, but attempts to regulate the whole economic system of the country, the Federal Anti-Monopoly Service (FAS) watchdog warns in a report on competition in 2018.
The new trends are evident on both federal and regional levels, where authorities are interfering in local business relations and engage in regional protectionism.
FAS reminds that before the 1998 crisis the state's share in the economy was estimated at about 25%, growing to 40-45% by 2008, and exceeding 50% in 2013. FAS assumes that in 2017-2018 the share of the state in the economy already exceeds 60-70% of GDP. FAS’s share of the state in the economy has proven controversial and remains the subject of debate amongst economists.
"In many regions we see what I would call economic feudalism, in which there is no private sector, no capitalistic relations, but vassals and lords – the state apparatus, which meddles in private business affairs," Vedomosti daily reminded of the controversial remarks made by the head of FAS Igor Artemyev in October 2018.
Analysts surveyed by Vedomosti remind that state intervenes in specific markets so often, as in the case of direct regulation of fuel prices, that it would be unreasonable to expect the companies themselves to refrain from coordination and tacit collusions.
Other estimates are more moderate, with the International Monetary Fund (IMF) estimating the share of the state and state companies in the Russian economy at 32-33% of GDP, using such metrics as ratio of consolidated budget to GDP. However, should one account for quasi-state companies or private companies too close to authorities to take independent decision, the ratio would increase to 50%-70%.
One of the main sources of confusion is how to count social, public sector and pension spending. While technically this spending doesn't form a part of calculating GDP, in Russia these outgoings are much higher than in western economies and have a very large, but technically indirect, impact on the size and performance of the economy.
FAS also notes that state spending through procurement, which does form part of the GDP calculation, amounted to RUB6.9 trillion in 2019 went mostly to state companies. State acquires 77% of financial and insurance services from state banks, 65% of scientific and engineering services from state institutions, as well as 51% of healthcare services, 45% of information and communication, and 42% of transportation and storage.
Previous reports notes that the Russian state procurement system has formed a special government-to-government or G2G segment.
www.bne.eu