Page 10 - RusRPTJul20

There are no new direct fiscal measures planned for SMEs. The government promises instead to reduce red tape, and full digitalisation of reporting and controls.
Digital systems are the main stress of the plan, according to ​Vedomosti​, as previously anticipated from Mishustin's government. The recovery plan proposes to set up one-stop shop online platform for SMEs for issuing permits and licences, a consolidated healthcare information system, including a nation-wide digital medical ID, and to launch an educational digital platform.
The govenment's usual focus on stimulating investment through large real sector projects is understandable, analysts surveyed by Vedomosti note, reminding that this is a well-developed and known economic policy.
Chief economist at BCS Global Markets Vladimir Tikhomirov notes that stimulating consumer demand would not necessarily yield high multipliers, as the population is not certain to start spending and might resort to saving after the epidemic shock. However, stronger consumer demand would facilitate private investment.
"It is important that this crisis pushes new technologies and structural economic reforms, instead of becoming another excuse to strengthen the role of the state in the economy and expanding bureaucracy," Tikhomirov argues, echoing the recent ​urge by policymaking veteran Alexei Kudrin for visionary reform​.
2.4 ​ ​Russia’s Exxon Valdez oil spill in the Arctic
The fragile Russian Arctic this week experienced its most serious environmental disaster in history when over 20,000 tons of diesel leaked from a fuel reservoir at an electric power station​. The fuel has already made its way into the soil, local rivers, and one of the area’s largest lakes, and may even reach the Arctic Ocean. The federal authorities took five days to react.
10​ RUSSIA Country Report​ July 2020 ​ ​www.intellinews.com