World Economy

Russia Boosting SMEs

Russia  Boosting SMEsRussia  Boosting SMEs

Russia’s First Deputy Prime Minister Igor Shuvalov wants to encourage major local firms, both private and state-owned, to do more business with domestic small and medium size enterprises. This could give a $105 billion boost to local industry, RT reported. Shuvalov plans to work out the details with Russian antitrust authorities. Global practice has been taken into account and shown that in the US, for example, a company after reaching a certain size in assets, is required to purchase at least 23% of goods and services from small businesses, Shuvalov’s spokesman told Russian business daily Vedomosti. In the first half of 2015, state-backed companies procured only $7 billion worth of goods from domestic small to medium sized businesses, which is only 5.7% of the total amount of orders, according to the Ministry of Economic Development. The new initiative will boost this number to at least $105 billion, says Yuri Danilov, who heads a company that aims to help small businesses access government contracts.