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A GUIDEBOOK OF RUSSIAN BUSINESS: DIFFICULT CHALLENGES FOR THE DOMESTIC ECONOMY
18.01.2016
    On November 24th 2015 the III international business Congress "Security and protection of business" was held in Chamber of Commerce and Industry of Russian Federation (CCI RF). It was organized by the National Association of Armed Forces reserved officers (MEGAPIR), together with the Committee for entrepreneurship in sphere of real estate economy of the CCI RF.
    During the Congress, experts discussed the key challenges and solutions for the urgent economic and political problems. Some special attention was paid to the issues of import substitution in the framework of the Eurasian economic Union, the investment climate in the regions of Russia, strategic partnership with the countries of APEC, BRICS and the SCO, and the relevant measures of state protection and support of entrepreneurship in the context of international economic integration, the participation of businesses in large public projects (in the framework of the state defense order), and other topics.



        The Congress was attended by ambassadors and embassy representatives of over 20 countries, the CCI RF Vice-President Dmitry KUROCHKIN, a member of the Board (Minister) for economy and financial policy Eurasian economic Commission Timur SULEIMENOV, academician of the Russian Academy of Sciences Abel AGANBEGYAN, representatives of the Analytical center under the Government of the Russian Federation, Agency for strategic initiatives, Business Union of Eurasia, ministries and agencies of Russian regions, Chambers of Commerce of Russia, major banks, development and investment companies, scientists, experts.
       The Congress participants noted that the situation in the economic and social spheres of Russia remains difficult. On the background of increasing budget crisis at Federal and regional levels there are risks emerged, but there are also new chances for the development of specific industries, business sectors, primarily those related to import substitution and advanced technologies.
      The difficult geopolitical situation has a great impact on the operations and major export-oriented business in Russia. Amid the exchange of sanctions there was an urgent need to reduce dependence on Russian imports. It was noted that in many strategic industries, the share of consumption of imported goods is more than 80% and it poses a potential threat to national security and the competitiveness of the Russian economy as a whole.



     "The turbulence of the global political situation raises difficult challenges for the Russian economy and Russian society. In these circumstances, the business community and the public authorities should adopt a unified policy aimed at sustainable and efficient development of all sectors of the economy in line with international best practices, proper substitution and the expansion of international political and business contacts. The era of focusing on Western society as the only right model of development, rooted in the past. Thanks to a sharp spurt of Economics and technology in the late XX – early XXI century, the modern world is increasingly becoming a truly multi-polar and multi-vector. Now the business community has a unique opportunity to catch this trend and not be left in the rear", - said the Chairman of the organizational committee of the Congress, CEO of the Association "MEGAPIR", the Chairman of Committee on entrepreneurship in sphere of real estate economy Alexander Kanshin.
       Many participants of the Congress noted the need to abandon outdated economic dogmas and the adoption of a new course in economic policy corresponding to new economic realities.
In order to ensure sustainable long-term growth of the gross domestic product of Russia at the level of 7-8% annually, we need to launch a new model of economic growth based, first, on adequate substitution and, secondly, on the active stimulation of domestic demand and consumption. Meanwhile, the primary means of economic acceleration should be "the transition to accelerated growth of investments into fixed capital". During the period from 2015 to 2020 the growth of investment must be at least 8% per year, then 10% per year. The share of investments in GDP is expected to grow from 19% in 2014 to 30% in 2025. In the context of the sanctions restrictions the principal source of investment will be domestic resources – primarily Federal budget and reserve funds of the country.



      Members of the Congress stressed that special role in solving problems in the field of import substitution in the Russian Federation can be played by countries of the Eurasian economic Union Treaty which came into force on 1st of January 2015. It was suggested that special attention can be paid to large investment projects – a potential "growth points" of regional economy.
The Congress participants noted that a long-term investment planning must be the selection of zones of advanced economic growth – potential "growth points" of regional economy. "Any innovative product can be produced if the industry really works, and businesses have access to credit resources, which are the "lifeblood" of a properly working economic chain", - said A. Kanshin.



     The delegation from China also participated in the Congress. The President and Chairman of the Chinese Corporation "Kaishi" Kai Cheng-Lian noted that friendly trade and friendly economic relations with Russia is a priority. He talked about possible projects of cooperation between the RF CCI and the Corporation "Kaishi". Today the Corporation is building the "Russian town" in Luishun (Port Arthur). This set includes: ecological resort, international centre for cultural exchanges between Russia and China, a school for children with disabilities, the residential complex and the international University for the Asia-Pacific countries.
      In the framework of the Congress there was signed a memorandum on cooperation between CCI of Russia and the Chinese Corporation "Kaishi" for the development of business, cultural and humanitarian ties.

A few words about the National Association «Megapir».

         During the 90’s thousands of armed forces’ officers appeared to be on a sideline of life, it was a tragedy for most of them, because they’ve spent so much time serving the army. In 1993 a small group of reserved officers founded The National Association of Armed Forces’ Reserved Officers (MEGAPIR).
The main idea was to create a strong economical base that would solve a wide range of social issues concerning the support of reserved officers and their family members.
        There is a General Directorate, which implements economic projects in the field of real estate development, property management, investment and consulting services. For more than two years we chair the Committee for entrepreneurship in sphere of real estate economy of the CCI RF, which promotes the establishment of an effective dialogue between the business community, experts and public authorities in the field of land-property complex.
       While organizing The International Business Congress, we set ourselves the task to consider the issues of economic development in a broader context, not only in the field of real estate. Our goal is also to consolidate the efforts of experts and find ways out of the current economic situation".



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