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Business Duty Officer

On the problems of legalizing Russian business

On the problems of legalizing Russian business

As a result of geopolitical confrontation, West, assuming an advantage in sanctions means of conducting a conflict, was forced to lay out all the cards. And they became trump cards of Russian business. However, is the business able to adapt to new realities?, whitewash dejure and defacto, to fully rely on state support and respect for their rights in the course of investigating crimes?

Since the "dashing" 1990s, Russian business has changed significantly, fraudulent shady schemes faded into the background. However, despite the qualitative transformation, there was no absolute transition to the legal sphere, and in society, there is still a stable association of entrepreneurs with "crooks".
Development of the institution of entrepreneurship in 1970-1980 years. was closely connected with the development of "shadow business" - illegal private economic activity. A negative attitude towards business on the part of society is also naturally formed.. After more than 40 Years, the value of entrepreneurship for the economy is clear, but still the entrepreneur himself is far from always seen as a useful figure for society and the state.

An important factor in the criminalization of the economy of post-Soviet Russia in the 1990s was the underestimation of the role of law in the development of a market economy.. Experts talk about "legal vacuum", since in addition to the Civil Code of the Russian Federation, in the Russian state there were no new fundamental legislative acts under the action of many regulations, many of which were adopted by the allied bodies more 10 years ago.

It was during this period of legal uncertainty that loans-for-shares auctions and pyramid schemes entered the economic arena., that caused significant damage to the formation of a positive image of the entrepreneur. The number of officially recognized victims is over 10 thousands of people, the number of investors in financial pyramids is estimated from 16,5 to 21,5 million.
The situation changed dramatically in the 2000s., when the Government set a course to build a single centralized vertical of power and eradicate bribery, which was seen as a direct sabotage of state policy by local actors. There is an active legalization of business, facilitated, among other things, by tax reforms.

In modern Russia, there is a record number of institutions for the protection of the rights of entrepreneurs. However, despite liberal business legislation and a significant amount of work done, Problems, related to the criminalization of the economy at the same time as the dissatisfaction of the business community with the protection of their law enforcers in case of complaints, related to forceful pressure on business, remain.

Survey on the protection of the rights of entrepreneurs, shows, that entrepreneurs do not appreciate the amendments to the criminal law, designed to protect them from unreasonable persecution. For iexample, the prohibition to seize original documents during investigative actions was positively assessed only by 17% respondents. A ban on taking action, that could lead to business interruption, not considered effective even by prosecutors, generally approving the current approach of the authorities to the protection of the rights of entrepreneurs.

So what gives rise to mutual dissatisfaction between business and law enforcement? It can be assumed, what exactly is the formation of entrepreneurship in the Soviet and post-Soviet period of the 90s, related to their illegal shadow economic activity, business criminality, identified the systemic problem of the biased attitude of law enforcement officers towards entrepreneurs.

Without an open public dialogue between law enforcers and business, as well as without the complex impact of organizational and structural, Qualification and procedural measures in the sphere of protection of business rights do not seem possible to qualitatively change the existing system of public relations.

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