Zee Beam News

MOSCOW, March 14 (RIA Novosti) - Russian President Vladimir Putin does not like the way small- and medium-scale business is developing in Russia. The government and the regional authorities still have not paved the way for the development of small- and medium-scale business, the president said at the conference with cabinet members. "I'm not talking about taxes. We know that something is going on here. But it is actually impossible to register an enterprise. It is mere violation of human dignity and sober sense. Those who open a business should get a medal for courage", the head of state noted sarcastically. Many questions have been put on the level of regions and municipalities. "We and our colleagues in the federation entities should go for a common framework decision. Without it, the rampaging around will go on", Mr. Putin said. Meanwhile, the Economic Development and Trade Ministry hopes that the new law on state purchases will let small-scale business get access to state purchases. "Small-scale business should play the key role in the system of state purchases. Small enterprises are the motive force, the basic source of growth of the economy", board director at the Economic Development Ministry Kirill Androsov has told RIA Novosti. He takes part in the exhibition-forum Goszakaz-2005 (State Purchase-2005), opened in Moscow on Monday. "The more transparent the procedures followed in the state purchase of commodities and services, the easier it will be for small enterprises to get access to them", Mr. Androsov believes. The ministerial spokesman noted that the Goszakaz-2005 largely represents small enterprises in direct contact with state purchasers and those in command of budget funds. Participants in the forum-exhibition are boards of the governments of Moscow and St.Petersburg managing state purchases. State purchase information portals of Moscow and St.Petersburg are open in the Internet to provide free information to small enterprises on competitions and where to file applications. In Moscow in 2004, out of the 400 billion rubles (1 dollar equals 27.46 rubles) of budget funds over 130 billion rubles were placed to competitions, effecting the saving of 7 billion rubles in the municipal budget. In 2005 the scheduled volume of competition purchases is to be brought up to 160 billion rubles. In St.Petersburg competitions make up only 27 percent of state purchases. Owing to the competition procedures, the municipal budget effected the saving of over two billion rubles in 2004. The Economic Development and Trade Ministry is for a more vigorous involvement of small enterprises in state purchases by natural monopolies, Mr. Androsov said. "We are trying to persuade natural monopolies - Gazprom, UES, Russian Railways - into giving preference to small enterprises in the placement of state orders", he said.