Russian ombudsman pledges support for businessmen

MOSCOW (AP) ? Russia's commissioner for the rights of entrepreneurs said Wednesday he will combat illegal prosecutions and biased court rulings against businessmen.

President Vladimir Putin set up the ombudsman's post in June in a bid to address investors' concerns about the country's investment climate. Russia is ranked 120th in the World Bank's Doing Business Index, between Cape Verde and Costa Rica, reflecting how difficult it is to operate in the country.

Thousands of businessmen have been jailed across Russia on charges trumped up by corrupt officials, some of whom use their powers in order to seize businesses from their owners.

In the most publicized case, lawyer Sergei Magnitsky died in jail in 2009 after he accused police officers of seizing assets from the firm he was working for.

Commissioner Boris Titov, a former chairman of the well-respected business lobby Delovaya Rossiya, said on Wednesday that his main mission in the new job is "the safety of doing business in Russia," so that no one will have to lose their business because of corrupt or heavy handed officials.

Russian authorities, including Putin, have pledged support and a friendly environment business for years, but their promises have not matched the reality. Titov met with a group of Moscow-based European businessmen to address their concerns on Wednesday, assuring them this time the government "has a genuine desire to support business people and solve their problems."

Titov said that the current "business climate in Russia is inadequate" for an economy striving for "ambitious goals of developing a strong economy ? an economy of private business, a competitive economy."

Although Titov was appointed commissioner in June, he will not enjoy all of the powers of his post until December when he will finally be able to represent business owners in courts, file claims on their behalf and suspend rulings of tax and customs bodies pending a court decision.

Russia been a difficult place to do business, but a booming market and high returns have outweighed concerns for many investors. Thousands of foreign businesses have entered the Russian market with a hope for a change in the business environment but most of them are patient in waiting for these changes to materialize.

Georges Barbey of chemicals producer Lanxess said that the problems that Russia faces are typical of any developing economy, and foreign investors understand that in a country as big as Russia any changes are slow to come. But a tangible improvement could attract new investors who are not prepared for an expensive market entry.

"The less bureaucracy there is, the less corruption is induced, the cheaper it will be for companies to come forward."

Source: http://news.yahoo.com/russian-ombudsman-pledges-support-businessmen-145135771--finance.html

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