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bne July 2019 New Europe in Numbers I 59
RAEX Ratings named the Russian regions with the best governance quality
bne IntelliNews
Russia’s Tambov region has the best governance in Russia, according to a rating by RAEX Rating Review, the com- pany said on June 17.
Russia’s regions are making progress as competition for investment between intensifies and at the same time the subsides from the central budget have been slashed by a cash strapped Ministry of Finance. But the profile is mixed with approximately a third of the total 83 Rus- sian regions doing well, a third treading water and the last third subsisting on handouts from the central government.
The Ministry of Finance is also cracking down on regional debt, which came close to causing a crisis two years ago. The ministry took "manual control" over the most indebted regions in April, but there are only five regions with real problems in the “red” category. The majority (38 regions) are in the “green” category and
allowed to manage their own debt while the rest are allowed to borrow, but have to check their plans with the ministry.
The top 20 regions included in the RAEX ranking is more focused on the investment potential of regions and are able to attract large investors, plan the budget with high quality and provide the population with social services.
Other regions in the top five include the agricultural powerhouse of Voronezh, the oil region Yamal-Nenets, the wine producing Krasnodar and the agricul- tural Chuvash republic.
The Russian capital of Moscow does surprisingly badly and is only ranked
in 60th place in the governance risk’s ranking. Regions are dragged down the rankings if they fail to uphold the rule of law or fail to arrest corrupt members of the administration.
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Ranking of regions with minimal governance risk (according to RAEX for 2018)
Rank
Name
Position in the investment risks main ranking
1 3 5 7 9 11 13 15 17 19
Tambov Oblast 6 Yamalo-Nenets Autonomous Okrug 33 Chuvash Republic 31
Leningrad Oblast 4 Khanty-Mansi Autonomous Okrug Yugra 24 Amur Oblast 45 Tyumen Oblast 14 Kaliningrad Oblast 34
Republic of Tatarstan 7 Kursk Oblast 9
2
Voronezh Oblast
8
4
Krasnodar Krai
2
6
Sakhalin Oblast
28
8
Komi Republic
62
10
Nenets Autonomous Okrug
67
12
Penza Oblast
16
14
Astrakhan Oblast
63
16
Novgorod Oblast
26
18
Ryazan Oblast
13
20
Murmansk Oblast
66
Source: RAEX Ratings
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