"Konstantin spoke about the measures to support the Russian entrepreneurs who want to enter the European Union market, and in particular Italy, but pointed to the serious administrative barriers in the EU, where it is very hard on Russian.  K.V. Krokhin mentioned additional bureaucratic costs and complex taxation which removes any motivation and dramatically reduces any profits.

This, he drew attention, harms business development and may lead to capital flight from Italy.  Why should Russian businessmen to invest in the EU, if more than 50% of the profit takes the state?  While in Russia income tax is only 6% (if the company is small or medium size), 13% income tax for natural persons and individual entrepreneurs, napribyl tax on average 18-20%.

Obviously, having a large market, which sometimes lack of services and modern goods, the Russian entrepreneur can earn much more at home than on the European market.  Now there is not a lot of Russian businessmen who want to open a business in the European Union.

When asked about the effect of sanctions against Russia for relations with Italian partners, K.V. Krokhin said that relations with the Italians have become closer and warmer; he was surprised by the fact they had increased interest in the business in Russia over the past two years.  He noticed that the interest of Italian businessmen to the Russian market (especially for regions far from Moscow) was not active and approach could even be called "lazy" in 2013.

According to K.V. Krokhin, the reason is clear: the Italian business has suffered more than any other developed European countries, the Group of G7.  Konstantin also said that today is actively developing direct links between the regions of the two countries, with what high hopes to overcome the negative consequences of the West's sanctions policy. "

 

Link to article.

http://it.sputniknews.com/italia/20160601/2796315/cooperazione-regioni-muro-tra-russia-ue.html

Author: Marco Fontana