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RUSSIAN BUSINESS DOES NOT TRUST LAW

According to a survey conducted by the Federal Security Service, Russian business does not trust law enforcement agencies, considers them ineffective and corrupt.

The Federal Security Service asked to assess the business climate of specialists (lawyers, legal scholars, prosecutors and human rights defenders) and entrepreneurs who were prosecuted. In total, 181 specialists and 211 entrepreneurs in 37 regions were interviewed.

According to the survey, 69.2% of experts consider doing business in Russia unsafe. In 2017, there were 57.1%, in 2018 - 67.2%. Businessmen are even more skeptical about the prospects of doing business in the country - 84.4% consider this unsafe.

Most still do not trust Russian laws. 70.7% of respondents believe that they do not guarantee protection of the business from unjustified criminal prosecution. In 2018, 70.5% thought so.

More than half (55% of respondents) do not trust the courts. Only 43.3% of respondents are ready to resolve economic disputes in a state court, 30.1% - in an arbitration, 10.8% - do not trust anyone at all.

The Federal Security Service also revealed an increase in doubts about the anti-corruption work of the security forces. 69.4% called it ineffective or rather ineffective. 37.7% noted that the level of corruption over the past year has not changed, and 30.8% reported an increase in corruption.

As a result of the criminal prosecution, 84.3% of entrepreneurs completely or partially lost their business, 73.8% as a consequence called the loss of jobs.

On average, one entrepreneur who has been prosecuted has 130 employees who have lost their jobs.

For more than 60% of entrepreneurs, criminal prosecution led to loss of health and reputation, 54.5% lost their business, 38.7% - most of their assets, 29.3% - money to resolve the issue of refusing to prosecute, 27.7% - reduced investment.