MOSCOW, RUSSIA - General Director of WTC Moscow Vladimir Salamatov participated in press-briefing of organizers and business partners of the National Award “Golden Mercury” in the sphere of Entrepreneurship. In his comments Vladimir Salamatov talked about the role of small and midsize business in Russian economy in terms of Russia’s membership in the WTO.

In his speech regarding the importance of supporting small and midsize entrepreneurship in the Russian Federation, Vladimir Salamatov noted that this segment of Russian business has considerable potential for further growth, which in turn can be instrumental for country’s economy in general.

“This year GDP growth has slowed. Clearly, in this situation a lot depends on the largest industrial enterprises of Russia. However, it seems to me that small and midsize business embodies considerable reserve of GDP growth as well. Nowadays only 18 million people declare themselves as small and midsize entrepreneurs. In total, their share of GDP is only 21%, while in developed countries this index ranges from 50 to 80%,” – said General Director of World Trade Center.

Vladimir Salamatov stressed that powerful integration processes, in which Russia participates directly, oblige domestic business to adapt to new economic conditions. Particularly, it concerns the functioning of small and midsize enterprises within the WTO. According to General Director of World Trade Center Moscow, changes in Russian legislation are smooth enough not to harm the interests of business sector.

“The response of our economy to Russia's joining the WTO has not yet come in full force. We are just beginning to feel its effects. Reduction of tariff protection, which affects business, has been conducted gradually for over 7 years; therefore changes in small and midsize entrepreneurship sector cannot be called radical. In addition, certain inertia is necessary and indicative when it comes to large economy and established trade relations”, - noted Vladimir Salamatov.

WTC Moscow’s CEO took a favorable view of the effect of the Customs Union on the economies of all member countries. It was also added that Russian entrepreneurs yet do not use full range of opportunities offered by the CU common market.

“Belarusian companies exploit advantages of the Customs Union common market to a greater extent than Russian business. Here in Russia the CU potential has not been fully realized. Now all countries of the Customs Union continue the transition towards unification of operational standards in different areas. However, everything will ultimately depend on the activity of each and every company”, - marked Vladimir Salamatov.

He also expressed confidence that in the nearest future the competition on the Russian market is expected to increase. “The government's efforts will be focused on preventive measures against unfair competition that arises as a result of a wave of counterfeit goods, smuggling of goods from abroad, reducing the customs duties via changing the code of product. These measures will smoothen the situation, but Russian business has to become stronger and more competitive”, - stated Vladimir Salamatov.

The National Award “Golden Mercury” of the Chamber of Commerce and Industry of the Russian Federation in the area of Entrepreneurship with the support of the RF Federation Council, Ministry of Economic Development of the Russian Federation and the RF Ministry of Regional Development was established in 2002. This principle business award in Russia is to promote dynamic development of the Russian small and midsize business and strengthen positions and traditions of Russian entrepreneurship. World Trade Center Moscow acted as business partner of the Award.

For more information on this article, please contact Yulia S. Ivanova, WTC Moscow, at YSIvanova@wtcmoscow.ru.