Tiraspol, 11 December. /Novosti Pridnestrovya/. From 6 to 6 December a governmental delegation and the heads of the major export-driven enterprises from Pridnestrovie took part in a business forum organised by Business Russia. A memorandum of mutual understanding and cooperation was signed between Pridnestrovie's government, Chamber of Commerce and Industry, and Business Russia. The Pridnestrovian delegation visited a number of industrial enterprises in the Moscow region where they got familiar with the introduction of innovative technologies and management at these facilities. Prime minister Alexander Martynov spoke about the visit's outcome and plans for further interaction with the Russian business.
At the start of a long way
According to the prime minister, the tripartite memorandum is a framework which will be implemented as early as 1 January 2018.
"This cooperation aims to promote Pridnestrovian exports anв cooperation in terms of attracting investment. These are the two main areas on which we'll cooperate in 2018," said Martynov.
Another area will be assistance by the Russian business in providing access for Pridnestrovian enterprises to cheap loans.
"A group of specialists will work to help us to work out a scheme to attract cheap loans to Pridnestrovie's economy which would contribute to the development of production. Working groups representing the government, business and Business Russia will be formed to work in these three areas," added Martynov.
Expanding ties
It is essential for Pridnestrovie to increase its exports. The key areas are Russia and the European Union. This may be facilitated by representatives of the business elite whose trade ties transgress the borders of Russia.
"We've had a good friend in the person of Business Russia. These are businesspeople, the people of word and action. The organisation has offices in other countries as well. The leadership of Business Russia will help Pridnestrovian businessmen to promote their goods, especially to the markets of Russia and the Customs Union. The organisation has great potential in this regard and extensive business ties, which will be good for our business," noted Martynov.
He underscored that Pridnestrovian businessmen had been able to engage in business contacts with Russian organisations.
"We hope these contacts will develop next year and will result in additional capacity utilisation and increased sales," added the prime minister.
"One of the main tasks is to create new jobs"
The prime minister noted that it was impossible to achieve economic growth, an increase in budget revenues and new jobs without export development.
"You know this [new jobs] is one of the main tasks before the president, government and all authorities, and this includes additional tax payments to the budget. That is, the well-being of Pridnestrovian citizens and export growth are two interrelated phenomena. We have already said that without an increase in the export of our goods and economic growth, our citizens will not become more self-sufficient, and there will be no additional budget revenues. This is why so much attention is being paid to this issue by the authorities," said the prime minister.
Competitive investment legislation
An agreement was also reached during the forum to provide methodological assistance to the PMR in the area of building investment legislation and cooperation with business.
"We are drafting an investment law. This not a law for the sake of law; this is a rule we are working out for investors who should encourage the opening of new businesses here. We'll draft and finalisу this law with experts from Business Russia and the Agency of Strategic Initiatives (ASI). Why is it important? It is important because we are developing this law, in fact, for them, for the Russian business. Whether they will work under this law, invest money in the Pridnestrovian economy or not will depend on the extent to which this law will be comprehensible and efficient," explained Martynov.
The draft law will be soon finalised and submitted to the Supreme Council, and approximately in February or March, Pridnestrovie will have new investment legislation.
According to the prime minister, the essence of the innovation is to implement a single window principle. "The investor does not have to go from one official to another but comes to one department instead, which will further maintain him," he said.
It is also suggested to conclude individual contracts with investors, which will include long-term tax rates and tariff plans.
"We guarantee the investor the most important thing — the stability legal regulation, the stability of taxation... For people, this means new jobs, tax payments to the budget, a prospect in the foreseeable future for an increase in salaries and pensions. Everything is done, ultimately, to ensure that our citizens feel a bit better every year," said the prime minister.
According to him, "investments come to the countries where they feel the safest and the return on investment is superior to others."
"There is now a competition for investors in external markets; states are competing with each other to attract investors to their countries. Our today's task is to minimise investment risks, to make them lower than in other countries. This is, above all, stable working conditions, respect for private property rights; the return on investment should be higher than in other countries," said Martynov, adding that among the competitive advantages the Pridnestrovian authorities could offer are preferential taxation and tariff policies, as well as preferential trade with the EU.
"If all these factors are out together, we'll get the most favourable environment for a foreign investor," he concluded.
Adopting experience
The main purpose of visiting enterprises in the Moscow region was, according to the prime minister, to study the experience of business development in today's environment.
"The example of Russia, and in particular of the Moscow Oblast, is illustrative. The way in which new technologies are implemented, in which credit resources are efficiently used, in which modern management is efficient is illustrative. This is not only the establishment of trade relations but also the exchange of experience. Our manufacturers see the way efficient business is made in Russia, what technologies are used there not only in manufacturing but also in enterprise management," said the prime minister.
"Making officials work efficiently"
Alexander Martynov said that at the start of the following year a group of Pridnestrovian businessmen would visit the ASI to take part in a number of seminars and round tables.
"They will be advised on how to properly communicate with the state. They will consult our businessmen how to insist on officials working efficiently," explained the prime minister.
The PMR has conducted a great deal of work for small business development in 2017. Measures to stimulate business have formed the basis of the road map. However, according to Martynov, it is very important that bureaucratic mechanisms do not interfere with the implementation of this instrument.
"Though confidence in the state is growing, the past experience is negative, and it will be very difficult for the state to return this confidence. We understand that and, on the contrary, propose business to be more active in defending their rights. We welcome the fact that our business unions will have new tools to control officials so that they work honestly, transparently and efficiently, so that our road map does not remain on paper but will be efficiently implemented," said the president.
"Business Russia will help to achieve this goal sooner"
"The Pridnestrovian economy has great potential for growth. Our production capacities are not fully engaged. We very much hope that contacts with Business Russia and the Russian Federation will not only allow us to create new production facilities but also engage the existing ones. This will be a powerful impetus to replenish the budget and to create jobs. The main thing is that the president, government and the Supreme Council have an understanding of how to improve the situation in the country. The assistance provided by Business Russia will help us to achieve this goal sooner," concluded Martynov.
