Page 49 - RusRPTFeb23

The Russian Union of Industrialists and Entrepreneurs, which unites big business, asked Vladimir Putin to sign a decree depriving foreigners from "unfriendly countries" of the right to vote with their stakes in backbone enterprises with revenues of over 100 billion rubles. “About 14 enterprises” should fall under the decree. In fact, the RSPP already made such a proposal last spring, and then it was supposed to be extended to all companies with foreign participation, but then the proposal did not pass. Now the chances are higher: according to RBC, the draft decree has already been approved by the Presidential Administration and the government, and the foreign shareholders themselves allegedly do not mind - participation in corporate decision-making in Russian companies threatens some of them with criminal liability.
Over 40% of Russian businesses do not plan to launch any new product lines in the next year or two, and those who are going to do so mainly seek to adapt existing products to “new” conditions, RBC business portal reported citing a joint study by the Expert RA rating agency, the Institute for Complex Strategic Studies (ICSS) and the Stolypin Institute.
The survey performed in November 2022 among SMEs shows that most of Russia's businesses are not focused on business development and innovation, but rather on survival and adaptation to the fallout from Russia’s military invasion of Ukraine.
The respondents were mainly construction companies, wholesale and retail trade organisations, and manufacturing companies. The economic climate has had an overall negative impact on business, according to 43% of respondents.
48% of the companies surveyed said that they plan to maintain their current production levels for the next one to two years or simply to stay in business as usual. Optimists who plan to increase output by more than 30% are far fewer, at around 12%.
The survey results indicate that there are high risks of prolonged stagnation in the Russian economy, the survey authors warn. "Companies following a survival strategy are not investing in personnel, developing new products, or exploring new markets. As a result, many market opportunities may be missed, and the recovery will be very slow," they wrote.
Rising costs, insufficient or unstable market demand are hampering the development and launch of new products, the survey's authors emphasise.
Only 22.5% of respondents said they plan to launch more technologically advanced products or services in the next two years. Only 10% of respondents spend more than 2% of their annual revenues on research and development (R&D).
49 RUSSIA Country Report February 2023 www.intellinews.com