Investment climate in the DPR? No, Potemkin villages!


Silence is gold?



One of the fundamental problems of the DPR authorities is the extremely low level of professional competence. Presumably, Donetsk officials from the highest echelons of power are no more stupid than their colleagues from the LPR. However, due to the lack of a good habit well developed by Lugansk residents, provoking scandals is as rare as possible and as best as possible to prepare for public speaking, they repeatedly appear in unflattering light, seriously damaging the image of the republic.

In March, the Minister of Revenue and Duties Yevgeny Lavrenov gave several interviews in which he spoke about the efforts of the DPR government to improve the investment climate and economic indicators in general. The press, of course, was expecting from the minister, first of all, a report on how the strategy for attracting investments and the agreements signed during the International Investment Forum, which was held in Donetsk on October 29-30, 2019, were implemented (about 250 people from 17 countries took part in it) ) As a result of the event, 34 agreements were signed (supposedly) for a total amount of 135,6 billion rubles.

Shocking results


The final declaration of the forum suggests an idea: the minister’s report should contain a lot of indicators and facts. Still, four months passed, and the applications were serious, not only in respect of fabulous profits, but also in terms of reforming the legislation and optimizing the investment climate. We list the most impressive:

- Attracting investment in the fuel and energy sector, ferrous metallurgy, mechanical engineering, agriculture, construction;
- development of special business conditions for foreign investors, providing for the creation of an offshore zone with full exemption from taxes and customs duties, simple and transparent rules for corporate reporting and management;
- adjustment of the regulatory framework to create exclusive conditions for doing business;
- legalization of the blockchain infrastructure and blockchain partnership that provides digital services around the world, with the highest standards of security, confidentiality, etc.

Revelations of the minister


Unfortunately, the minister’s report was very modest and devoid of specificity. So, according to Yevgeny Lavrenov, it’s too early to talk about global results today, because first of all the government has set goals and objectives, and now it’s “systematically moving towards creating an investment climate”.

“In order to improve the quality indicators of the same ministries and departments, we need serious enough capital investments to reduce operating expenses. Therefore, of course, those many things that we are going to ... during the war, we were far behind the world in technical terms. And all the things that have been long gone in large countries, we are only going through today ... Therefore, of course, there are results: our delegation traveled to Syria, we showed some of our achievements that are necessary for the Syrian Arab Republic, and today negotiations are ongoing on specific activities . Unfortunately, we are not recognized by Syria ... One of the things that are really interested in Syria is 3D modeling regarding the production of prostheses ”,

- declared Lavrenov.

Besides news On computer modeling of prostheses for crippled Syrians, Yevgeny Lavrenov said that to create a favorable investment climate in the republic, a serious challenge is “establishing an information exchange between departments”, which, according to the official, requires significant investments, including the purchase of computer hardware and software.

The interview ended with a number of general and theoretical points, devoid of specificity and attachment to the realities of the DPR.

Important to clean up


In order to attract investment in LDNR, in fact, you need to start not with fantastic projects like creating offshore zones. It would be nice to start with the tax system and the customs code. It is worth recognizing: at the end of 2019 and the beginning of 2020, the DPR government made several amendments in these areas, but they did not give conceptual changes. And these changes are vital! First of all, it is worth noting that the LDNR has an extremely unattractive taxation model: high income tax and value added tax rates, the impossibility of adding funds spent on repairs (no more than 10%) to gross expenses, double taxation, 100% tax advance payment payments during export operations, etc. Currently, DNR agrarians are asking the government of the republic for tax holidays for the next five years, but today it looks like a utopia: fiscals in Donetsk are carefully squeezing every penny, without thinking about the development of the economy. So far, all reforms aimed at attracting investors remain at the level of promises.

Entrepreneurs engaged in foreign economic activity in LDNR often complain about “surprises” from customs officers, who can easily raise the amount of customs duties, and illegal actions can only be challenged in theory. Separate mention deserves the very procedure of customs clearance, which takes a lot of time and requires the completion of numerous documents. Unfortunately, there is still customs between the LPR and the DPR, which they promised to abolish back in 2018. This circumstance throws not only foreigners, but also local residents into bewilderment. No one understands what prevents the LPR and the DPR from creating a single economic space.

The work of the Central Republican Bank, which is a de facto monopolist, deserves a lot of complaints. From time to time, the CRH is completely unpredictable and without prior notification “pleases” customers with innovations, changing the rules and tariffs for services. Of course, nowhere to complain about the monopolist.

Unlearned lessons


However, all these factors and even the unrecognized status of the republics, which, according to the head of the Ministry of Social Development of the DPR, Yevgeny Lavrenov, can even be used to benefit and provide certain advantages, fade before a really serious problem - the negative image created by LDNR by the previous head of the Ministry of Revenue and fees Alexander Timofeev, nicknamed Tashkent. An image that for some reason was considered excessive in Donetsk.

It is not known for certain which part of the crimes attributed to Tashkent related to the illegal expropriation of property, business, crops, transportation, etc., is true. Contrary to their own promises, the authorities of the DPR did not make a public assessment of the activities of Alexander Timofeev. And in vain, since the rumor about his "arts" has spread quite far.

It would seem that it is worthwhile to conduct a thorough investigation and publish its results, and return all the illegally taken property to the owners ... However, even the long-suffering market owners in the DPR did not get theirs, although they talked about returning at the highest level and even created a special departmental commission, which gathered in vain several times, then to simply self-abolish.

By the way, nothing was heard about Vadim Savenko's agricultural holding - Kolos D LLC, which, despite the war and the devastation, invested $ 20 million in business and annually paid about 100 million rubles in taxes to the republican budget. In 2018, the enterprise was suddenly imposed exorbitant fines, after which it was seized by the special forces of the Ministry of Health. Moreover, according to Vadim Savenko, only 750 million rubles worth of grain was exported from the elevators. According to the entrepreneur, who, after losing his investment, returned to Russia, Tashkent and its associates to one degree or another seized the assets of 98% of the DPR business enterprises.

Potemkin villages


Do you think someone compensated the entrepreneur for his loss? A rhetorical question ... So, before creating offshore and talking about investments, is it worthwhile to clearly show investors that their investments will be profitable and not become another Tashkent?

It seems that today in the DPR they successfully implement the Ukrainian experience in blowing bubbles: creating a map of tourist routes, programs for socio-economic development, schemes to improve the investment climate, strategies for achieving world peace ... All this is inherent in almost any state, however, in the present Donbass republic their position and against the background of spilling blood simply can not afford the luxury of looking like a props.

Alas, years go by, officials and scenery of Potemkin villages change, but the essence remains the same: imitation of violent activity instead of real work.
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  1. Unfortunately, it’s sad to see some poorly retouched attempts at well-being in these areas. Yes, I remember the Donbass bus, the snowflake, the Donetsk rifle, and hikes in the greenhouses among tomatoes!
    As I remember the mass minuses for trying to doubt such an indicative paradise. And it looks like ... Not everything was lost, but to the milk rivers oh how far ...
  2. bessmertniy 18 March 2020 06: 08 New
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    Perhaps, the situation is the same in most Russian regions - investors are simply afraid to invest their money, because they may be left without them. You see, a lot of delegations come to the region, all with intentions, and then disappear somewhere and do not appear. And in unrecognized republics, the risk is even greater. Therefore, hundreds of participants in investment forums and multi-billion dollar promises ultimately do little to change investment climate and investment activity. hi
    1. Insurgent 18 March 2020 06: 21 New
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      Quote: bessmertniy
      Perhaps, the situation is the same in most Russian regions - investors are simply afraid to invest their money, because they may be left without them.

      Needless to say ... A sick topic for us. Business from Russia is not coming to us, it’s dangerous.
      There are no clear and definite guarantees from the Kremlin that the Donbass will never again be in the sphere of influence of ex-Ukraine.
      Yes, and war ... And money loves silence.
      But, in fact, almost the same picture exists with the investment climate in the Crimea. After 6 years, big business, companies, banks, did not dare to openly enter OUR CRIMEA ...
      1. Ivan Kolodin 18 March 2020 06: 59 New
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        Well, this is nonsense, you must agree that Sberbank is afraid to work in Crimea, one damn thing they got the sanctions of, and about business and the state have billions in accounts that they invest in American bonds, but they could in the economy of their regions ...
        1. Insurgent 18 March 2020 07: 02 New
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          Quote: Ivan Kolodin
          Well, this is nonsense, you agree, Sber is afraid to work in Crimea, one hell of a sanction got what they are afraid of

          With this issue, we must turn to business and government. But, if they wanted to say something about this, they would have done it a long time ago.
          And not just in words.
          1. Ivan Kolodin 18 March 2020 07: 08 New
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            It’s annoying, like everyone’s window dress, when the same head of VTB speaks of a difficult investment climate for investments, but at the same time he takes an apartment in New York for tens of millions of Basques ... And his greasy cheeks shine, and you’ll understand why there are such people in 1917 to the wall without further ado ....
            1. Insurgent 18 March 2020 07: 11 New
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              Quote: Ivan Kolodin
              it is clear why the likes in 1917 to the wall without unnecessary words

              "Such", usually the first to "ski" laughing
            2. Victorio 18 March 2020 08: 37 New
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              Quote: Ivan Kolodin
              It annoys me like all the window dressing when the same head of VTB speaks of a difficult investment climate for investments, but at the same time he takes apartment in new york for tens of millions of Basques ... And his greasy cheeks shine at the same time, and you’ll think it’s clear why they were similar to the wall in 1917 without a word ....

              ===
              expose the events of four years ago ?!
              1. Insurgent 18 March 2020 08: 44 New
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                Quote: Victorio
                four years ago

                But what, after these years, did VTB enter openly into the Crimea at least (not to mention the Donbass) as an investor?
                Or an apartment, was sold, and the money transferred to the treasury of the Russian Federation?

                No, everything was cocoa, cocoa is ...
                1. Victorio 18 March 2020 10: 06 New
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                  Quote: Insurgent
                  Quote: Victorio
                  four years ago

                  But what, after these years, did VTB enter openly into the Crimea at least (not to mention the Donbass) as an investor?
                  Or an apartment, was sold, and the money transferred to the treasury of the Russian Federation?

                  No, everything was cocoa, cocoa is ...

                  ===
                  no, I just clarify, read something then, at 14 or earlier. the property was, but there is no evidence / case of its illegality. here there are problems, and not only Kostya, I think, almost everyone in business and government. and, unfortunately, swap the poor engineer on the bone, it will be the same.
                  1. Insurgent 18 March 2020 10: 10 New
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                    Quote: Victorio
                    unfortunately, swap the poor engineer on the bone, it will be the same

                    Moving beds in a house of tolerance, you won’t make a profit ...

                    Managers and staff, you are not bad,control system, "political management" - no
                    1. Victorio 18 March 2020 10: 23 New
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                      Quote: Insurgent
                      Quote: Victorio
                      unfortunately, swap the poor engineer on the bone, it will be the same

                      Moving beds in a house of tolerance, you won’t make a profit ...

                      Managers and staff, you are not bad,control system, "political management" - no

                      ===
                      I don’t know about tolerance and beds, but there is a problem with the people of business and the system installed by them.
              2. Ivan Kolodin 18 March 2020 09: 57 New
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                Since then, he also bought a plane, a little?
            3. COJIDAT 23 March 2020 22: 49 New
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              and between the cheeks - give him a drive)))
        2. tech3030 18 March 2020 08: 38 New
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          Maybe just because the sber is controlled from the outside!?
      2. Po-tzan 19 March 2020 17: 33 New
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        Quote: Insurgent
        Needless to say ... A sick topic for us. Business from Russia is not coming to us, it’s dangerous.
        There are no clear and definite guarantees from the Kremlin that the Donbass will never again be in the sphere of influence of ex-Ukraine.
        Yes, and war ... And money loves silence.
        But, in fact, almost the same picture exists with the investment climate in the Crimea. After 6 years, big business, companies, banks, did not dare to openly enter OUR CRIMEA ...


        International foreign companies cautiously begin cooperation even with hefty Russian companies such as Rosneft, fearing sanctions, there, yesterday the article was how the Chinese sent Rosneft nafig (https://topwar.ru/169116-kitaj-vstupil-v-neftjanuju-vojnu-na -storone-protivnikov-rossii.html). What can we say about business development in gray, impoverished, depressive regions with an incomprehensible status, such as LDNR, Abkhazia, Ossetia, Transnistria.

        And our companies do not go to the Crimea, because their owners, friends, "zeroed out" all the families, property and loot are in the west. If personal sanctions are introduced against Putin's officials, then instead of the EU they will have to be treated with their native Russian medicine, which is incompatible with life. There, Kobzona when the EU did not allow oncology to be treated, he died immediately.
  3. Donbass19 18 March 2020 07: 44 New
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    And no big investments are needed. There are people, the infrastructure is almost whole and there should be a head. But if you have a higher salary in your library than in a mine, if you have a lot of people sweeping streets for days, if everything in your store is imported, not local. then the result. But officials do not need it. They would have to sit out the night and wait out the day while deciding their interests. Where are the 80% local stores that Zakharchenko had promised? And if you sweep the streets, the streets will be clean, but no bread will be added. the problem is that local features are not used. Including for selfish motives. After all, production is difficult, here you need to think and work. And so blah, blah, blah 6 years in a row. Thanks to Russia for raising pensions and salaries, it’s easier for locals to refer to the war.
    1. Insurgent 18 March 2020 08: 21 New
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      Quote: Donbass19
      And so blah, blah, blah 6 years in a row. Thanks to Russia for raising pensions and salaries, it’s easier for locals to refer to the war.

      And "blah, blah, blah" is yes . But without the help of Russia, which had been destroyed before the war by the “independent” power and finished off by the war, it would not work out for us. Not enough urine.
      Moreover, the war has not yet stopped, 2/3 of our territory, in occupation.

      Pensions, and other social benefits? And who else but Russia pays them to us? On Pushilin and Co., only the responsibility in their distribution is entrusted. There was no “pressure” on the DPR authorities from the Russian Federation.
      Raising pensions is Russia's goodwill, and understanding that it is very, very difficult for us.
      1. Donbass19 18 March 2020 08: 59 New
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        Well, about 2/3 it's not for us to decide when to release them and how to turn them on !!! into the economy. The question is that local opportunities are used very poorly. Well, they used to do canned food, juices, etc. at the collective farm levels. In the morning, go to the central market until 8-00 and look. Imported wholesale, controlled by "people of Caucasian nationality." Do we have land? We are not able to produce our own vodka, beer, etc. Of course, it is easier to share what Russia stands out with a low bow to it, but it’s time to try to live by ourselves and not sit on our necks. otherwise we’ll hear again that Kurchenko is to blame or who else will come up with.
        1. Insurgent 18 March 2020 09: 12 New
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          Quote: Donbass19
          Well, about 2/3 it's not for us to decide

          And to whom? This is our land !
          Quote: Donbass19
          The question is that local opportunities are used very poorly. Well, they used to do canned food, juices, etc. at the collective farm levels.

          Keyword "once upon a time". Only in my city in the" blessed 90s ", the ukrovlada was ruined by a meat factory and a dairy." There were no raw materials, "because before that the collective farms you mentioned were safely killed ... No collective farms, in the Soviet perception of powerful agricultural holdings.
          Quote: Donbass19
          In the morning, go to the central market until 8-00 and look. Imported wholesale, controlled by "people of Caucasian nationality." Do we have land?

          On the indoor? The fact that there are all sorts of "from the Caucasus," abound, so it was both in the USSR and before the war ... "Selyavy" wassat
          There is land, no collective farms, there’s no technology, no money for fuel, seed, etc. - either ...

          Quote: Donbass19
          We are not able to produce our own vodka, beer, etc.


          But about the "beer-water", please LEARN MORE, as I begin to doubt that you are really from the DPR, and you own the situation ...

          Answer, and then I, no matter what you answer to the account of “beer and vodka produced by the DPR”,I will add a separate comment.
          1. Donbass19 18 March 2020 09: 25 New
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            There is no doubt about my whereabouts. What is local I see myself. Question in% relation. At least go to “Milk”, at least to “First.” “Semerochka” and “Five Peaks” have gone somewhere. In Makeevka there is still a "Vector". You can, of course, import everything, but you can produce it. These are jobs and taxes. It’s just that in a war environment, a mobilization economy is practiced. Then the tractor and everything else will appear. And Russia allocates fuel and seed.
            1. Insurgent 18 March 2020 09: 34 New
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              Quote: Donbass19
              There is no doubt about my whereabouts.


              And the answer is "vodka with beer" that are not "produced in the DPR", where ?

              For your part, this is blah, blah, blah ...

              For readers from the Russian Federation, and other former parts of the USSR, I must explain that something, but vodka and beer, balms, our production - VALOM. Moreover,QUALITYat a very modest price good
              I answer as a consumer yes

              And for beer, it should be noted separately that in addition to a large brewery in Donetsk, small and private breweries that produce mostly elite and more expensive varieties of foamy drink, "draft", work in cities and towns.

              Tell me more “Donbass19” that we don’t have our own “Debaltsevsky“ Marlboro “”, and other “LM” and “Winston” laughing

              You did not convince me with your answer, you did not convince me no
          2. The comment was deleted.
            1. Insurgent 18 March 2020 11: 11 New
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              Quote: Ryan
              This is Ukrainian land !!!

              Merge, ukrosvidomit stubborn.
              1. Insurgent 18 March 2020 11: 13 New
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                Quote: Insurgent
                Merge, ukrosvidomit stubborn.


                Merged fellow lol

                That's what wordlife-giving does laughing laughing laughing !
          3. Ryan 18 March 2020 11: 13 New
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            This is our land
            ____________________________
            This is Ukrainian land !!! Ask the residents of Kramatorsk, Severodonetsk, Lysychansk, Slavyansk, Rubezhnoy, Svatovo, Toretsk, Mariupol (especially since Mariupol is actually not territorially and mentally Donbass, Mariupol is the Sea of ​​Azov) if they want to enter your gangster enclave, they will answer NO! Thank God the majority of the population of these cities is for Ukraine, they love and support Ukraine and constantly conduct pro-Ukrainian patriotic marches and flash mobs with blue-yellow and red-black flags!
            1. Insurgent 18 March 2020 11: 18 New
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              Quote: Ryan
              This is Ukrainian land !!!


              Quote: Ryan
              flash mobs with blue-yellow and red-black flags


              Sin, evil Bandera!
      2. Po-tzan 19 March 2020 17: 37 New
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        Quote: Insurgent
        2/3 of our territory, in occupation


        Those. Do you have any complaints about any other left-bank territories of Ukraine, except for the border established by Ukrainian laws of the Lugansk and Donetsk regions?
  4. Ros 56 18 March 2020 08: 36 New
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    Well, what serious investments can be in the Donbass, locals don’t have that kind of money, and if anyone has it, questions may arise, and it’s problematic for newcomers to go there. And most importantly, the situation is unstable.
  5. Ryan 18 March 2020 11: 18 New
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    It's ridiculous! What can be foreign investment in these occupational gangster enclaves (occupied dwarf stubs), which they call themselves "Deneer" and "Leneer"!
    1. Insurgent 18 March 2020 11: 27 New
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      Quote: Ryan
      It's ridiculous! What can be foreign investment in these occupational gangster enclaves (occupied dwarf stubs), which they call themselves "Deneer" and "Leneer"!

      Rights, dill, NO FOREIGNERS, only from Russia - mother.
      She is for us, and we are for hernot abroad wink

      Come on, “screw up” further laughing

      Shaw belay , already dead, bobik, exhausted? Puppy vmerlo ?
  6. Ryan 18 March 2020 11: 22 New
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    When will the Ukrainian Warriors-Liberators liberate and purify the Ukrainian Donbass from these rashists, bandits, invaders, colorado!
    1. Insurgent 18 March 2020 11: 34 New
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      Quote: Ryan
      When will the Ukrainian Warriors-Liberators liberate and purify the Ukrainian Donbass from these rashists, bandits, invaders, colorado!

      Yes NIKADA wassat Sin, wretched negative
  7. Ryan 18 March 2020 11: 32 New
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    I don’t understand - how is it that the minister, leader, civil servant has a clique (drove), for example - "Tashkent"! This suggests that the bandit and the gopnik with a gun was a minister! By the way, his last name is Russian - Timofeev, obviously Russian (obviously not Ukrainian) and obviously from Russia, somewhere from Ryazan or Barnaul or Magadan!