Russian business income lowest since 1990s

RUSSIA / FSU POLITICS - In Brief 07 Aug 2020 by Alex Teddy
On August 3 data was published showing that revenue for businesses during Q2 2020 was its lowest for over 20 years. SMEs have been particularly hard hit. The Russian Statistics Agency said that 3.5% of household income derived from entrepreneurs in Q2. By entrepreneurs it meant SMEs and small renters. In Q1 entrepreneurial activity accounted for 5.9% of income. The drop has been USD 4 billion. SMEs have been slowly declining for some years but coronavirus has sped up this decline. SMEs lament that the government does not help them enough. Huge semi-state companies, on the other hand, get ample support. Welfare benefits amount to 22% of household income in Q2. The government gave bonuses to doctors and nurses and extra money to parents of children under 18.40% of people say they are worse off since COVID-19 broke out. Mass unemployment has been averted by the government threatening onerous inspections on businesses that lay off staff. The government also offered low interest loans to businesses that retain over 90% of their workforce. The loans will be forgiven once normality returns.

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