Over 60% Of Foreign Investors Note Russia's Business Climate Improving - Report

As many as 61 percent of foreign companies present in the Russian market note that the business climate in the country is getting better and welcome the government's efforts in this regard, according to a report by global consulting company EY

MOSCOW (UrduPoint News / Sputnik - 22nd October, 2019) As many as 61 percent of foreign companies present in the Russian market note that the business climate in the country is getting better and welcome the government's efforts in this regard, according to a report by global consulting company EY.

The report was commissioned by the Foreign Investment Advisory Council (FIAC), a body that was jointly established by the Russian government and foreign investors back in 1994 in a bid to improve the country's business climate. The release was timed to the anniversary FIAC meeting, chaired by Russian Prime Minister Dmitry Medvedev on Monday.

Though the research, titled "Prospects for International Business Development in Russia," showed that the lion share of investors note the improving conditions for doing business in the country, only 10.5 percent of them fully share this view, while 50.5 percent of them partially agree with it.

One-fifth of respondents say that they would rather disagree with this positive assessment, with another 11 percent seeing no change in the business climate.

"Among the curbs for business development in Russia, companies mention the rapidly changing legislation, a large number of supervisory bodies in various areas, the lack of a clear regulatory strategy for most industries, as well as poorly coordination between Federal and regional authorities," the report said.

Ninety-one percent of investors surveyed, however, still view the Russian market as strategic, with 85 percent of respondents expecting growth of their businesses in Russia.

As for the geography of investors, the revenues of US companies in Russia are five times higher than those of their Asian competitors. The US revenues are also 50 percent bigger than those generated by European investors.

In total, Russia has received $585 billion in foreign direct investment over the past 25 years, with FIAC members accounting for $184 billion, the report pointed out.

The survey was conducted among 95 foreign companies active in Russia.