Private companies will pay for state aid to small and medium businesses

Private companies will pay for state aid to small and medium businesses

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The government is discussing a scenario of expansion of assistance to small businesses


Photo: urban news Agency “Moscow”

Large private companies receiving state aid, may be required to make purchases from small and medium-sized businesses. This idea is now being discussed in the government, have informed “news” in a press-service FAS. The size of the quotas for the purchase has not yet been determined, but the business enterprises believe it is fair to set the same level as for state-owned companies — 18% of total purchases.

The government is discussing with experts and market participants the idea of establishing quotas for procurement from small and medium enterprises to large private companies that have received any support from the state. This “news” have informed in a press-service of Federal Antimonopoly service (FAS).

— The mechanism of the possible introduction of quotas and its size is still under discussion with experts, market participants and authorities, — have informed “news” in a press-service FAS.

To the state in this matter may include any form of financial assistance, including subsidies, incentives and other. A decision thereon is pending.

First, the government discussed the introduction of quotas for purchases from small and medium enterprises for all large private companies regardless of whether they received assistance from the state or not, told “Izvestia” head of “Business Russia” Alexey Repik. However, this proposal sparked opposition from business associations.

This would be intervention in economic activity — we don’t really want to accept measures which are non-market in nature, — said Alexey Repik.

He added later that the proposal was revised taking into account the interests of the state and business.

Companies that at least in some extent be supported by the government, within the dimensions of the state must support small and medium-sized businesses, but again, in the part of the quotas that are set for state-owned companies, — said Alexey Repik.

Now state companies are obligated to give 10% of orders for small and medium businesses on spectrah for the procurement of up to 200 million rubles and 18% of total orders.

The head of “OPORA Russia” Alexander Kalinin the idea of extending this rule to the private sector was supported, adding that it is necessary to establish a quota for procurement from small businesses for companies operating on public-private partnerships and concessions (the partnership agreement between the state and a private company).

— If the company operates on a system of public-private partnerships, such as “Rosvodokanal”, takes something in concession, because this is a private-public partnership, it would be absolutely correct quota of purchases from small businesses. We share this position, — said Alexander Kalinin.

Professor, Department of Economics and Finance of public sector of the Institute of state service and administration of Russian presidential Academy of national economy and public administration (Ranepa) Lyudmila Pronina supports the establishment of a quota for procurement from small businesses for private companies receiving state support.

It will contribute to the development of public-private partnerships, concessions. Small and medium enterprises have very high quality goods, works and services that private companies could purchase. For example, repair services. Small business can work well and efficiently. This is a positive trend — sure, Lyudmila Pronin.

If the idea is to compel private companies to cooperate with small businesses will be implemented, it will affect most of the major private companies. Among them, for example, is NOVATEK, the largest private supplier of natural gas. This company in 2015 received for the construction of the gas liquefaction plant “Yamal LNG” 150 billion rubles from the national welfare Fund.

May also be subject to the initiative of such companies — participants of PPP projects as “Mostotrest”, DSK Avtoban, a group of construction companies vis “Tamanneftegas”, LSR “RT-invest the Transport system” and others.