With the goverment behind, President Dmitry Medvedev couldn't promise much to the business.
Photo: Alexander Miridonov
| Other Photos |
 |
|
 |
President Gives Promise to Business
Spokesman of Russia’s big business finally managed yesterday to express to President Dmitry Medvedev their concern about the market condition, starting from aftereffects of the war with Georgia to the methods that the government applies to rescue private firms. The only promise given by Medvedev was to answer the question about the VAT reduction in a few days. The sources say it will be Prime Minister Vladimir Putin who will give that answer.
Russia’s President Dmitry Medvedev met spokesmen of the national big business in the Kremlin yesterday, September 15, 2008. The event took two hours and a half and was described by the president’s news service “as the meeting with representatives of the entrepreneurial community.”
Interros CEO Vladimir Potanin and chief of Russia’s Union of Industrialists and Entrepreneurs Alexander Shokhin didn’t conceal that their purpose was to persuade Medvedev to fulfill his February promise and trim the Value Added Tax. But that target would be hardly attainable, it became clear from the very beginning. Neither Economic Development Minister Elvira Nabiullina (that stands for the tax reduction) nor Vice Premier and Finance Minister Alexei Kudrin (who is its key opponent) attended the meeting. Besides, the president didn’t intend to focus on taxes during that get-together with the business - First Deputy Chief of President's Administration Vladislav Surkov, First Vice Premier Igor Shuvalov, President's Administration Chief Sergei Naryshkin were in the hall to welcome the business spokesmen.
The meeting started by one minute’s silence in remembrance of the victims of the Saturday air crash in Perm. After it, the president set to describing the situation in Russia and worldwide in the wake of the clashes with Georgia for South Ossetia. Medvedev proceeded to the economic aspects of political situation in the second half of his speech, describing a raft of issues (no more than five sentences for each), ranging from the chances for the WTO membership, establishment of the International Financial Center to the slump on the stock market.
The burning issue for the business, the position of companies after the drop in capitalization and the need to refinance loans taken on security of their own stocks was raised closer to the end of the event. To no avail though, Medvedev didn’t give any definite orders related to refinancing the banking system by the Central Bank of Russia and Finance Ministry.
The strategic issue for entrepreneurs, the reduction in VAT, was raised as well. Of interest is that the businessmen didn’t manifest their uncompromising attitude in respect of it. Vladimir Lisin, who heads Novolipetsk Iron & Steel Works said the VAT reduction for the big primary business wasn’t as vital as for the middle one.
Nevertheless, Medvedev made a firm promise exactly in relation to VAT reduction. The president pledged to clarify the situation in the nearest few days, pointing out that the response would be final and unambiguous. According to the sources, it will be Prime Minister Vladimir Putin that will actually give the answer during the meeting of the Government’s Council for Entrepreneurship and Competitive Ability that is slated for September 18, Sochi.
www.kommersant.com
All the Article in Russian as of Sep. 16, 2008
|
|
|
