Doing Business 2018 Russian Federation Economy Pro le of Russia Doing Business 2018 Indicators (in order of appearance in the document) Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company Dealing with construction Procedures, time and cost to complete all formalities to build a warehouse and the quality control and permits safety mechanisms in the construction permitting system Getting electricity Procedures, time and cost to get connected to the electrical grid, the reliability of the electricity supply and the transparency of tariffs Registering property Procedures, time and cost to transfer a property and the quality of the land administration system Getting credit Movable collateral laws and credit information systems Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance Paying taxes Payments, time and total tax rate for a firm to comply with all tax regulations as well as post-filing processes Trading across borders Time and cost to export the product of comparative advantage and import auto parts Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the legal framework for insolvency Labor market regulation Flexibility in employment regulation and aspects of job quality About Doing Business The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and regional level. The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life cycle. Doing Business captures several important dimensions of the regulatory environment as it applies to local rms. It provides quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business, it does present the data for these indicators. By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages economies to compete towards more e cient regulation; o ers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy. In addition, Doing Business o ers detailed subnational reports, which exhaustively cover business regulation and reform in di erent cities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region and with the 190 economies that Doing Business has ranked. The rst Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business, also collected data for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has bene ted from feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the regulatory environment for business around the world. Page 2   for insolvency Doing Business Labor market 2018 regulation Russian Federation Flexibility in employment regulation and aspects of job quality About Doing Business The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and regional level. The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life cycle. Doing Business captures several important dimensions of the regulatory environment as it applies to local rms. It provides quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business, it does present the data for these indicators. By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages economies to compete towards more e cient regulation; o ers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy. In addition, Doing Business o ers detailed subnational reports, which exhaustively cover business regulation and reform in di erent cities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region and with the 190 economies that Doing Business has ranked. The rst Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business, also collected data for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has bene ted from feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the regulatory environment for business around the world. The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is re ected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190. The ranking of 190 economies is determined by sorting the aggregate distance to frontier scores, rounded to two decimals. More about Doing Business (PDF, 5MB) Ease of Doing Business in Region Europe & Central Asia DB 2018 Rank 190 1 Russian Federation Income Category Upper middle income 35 Population 144,342,396 DB 2018 Distance to Frontier (DTF) GNI Per Capita (US$) 9,720 0 100 75.50 City Covered Moscow DB 2018 Distance to Frontier (DTF) 0 100 75.50: Russian Federation (Rank: 35) 72.27: Mexico (Rank: 49) 71.33: Regional Average (Europe & Central Asia) 65.29: China (Rank: 78) 56.45: Brazil (Rank: 125) Page 3   aggregate distance to frontier scores, rounded to two decimals. More Doingabout 2018 (PDF, Doing Business Business 5MB) Federation Russian Ease of Doing Business in Region Europe & Central Asia DB 2018 Rank 190 1 Russian Federation Income Category Upper middle income 35 Population 144,342,396 DB 2018 Distance to Frontier (DTF) GNI Per Capita (US$) 9,720 0 100 75.50 City Covered Moscow DB 2018 Distance to Frontier (DTF) 0 100 75.50: Russian Federation (Rank: 35) 72.27: Mexico (Rank: 49) 71.33: Regional Average (Europe & Central Asia) 65.29: China (Rank: 78) 56.45: Brazil (Rank: 125) Note: The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is re ected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190. Rankings on Doing Business topics - Russia 1 10 12 18 28 29 28 51 52 54 55 82 Rank 100 109 115 136 163 190 Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Investors Borders Permits Distance to Frontier (DTF) on Doing Business topics - Russia 100 93.03 92.81 88.72 79.29 80 75.00 72.18 69.20 65.25 61.67 57.83 60 DTF 40 20 0 Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Change:+0.01 Change:+0.37 Change:+5.00 Investors Change:-0.06 Borders Change:0.00 Change:+1.14 Change:+0.01 Permits Change:0.00 Change:+1.49 Change:+0.10 Starting a Business Page 4   This topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sized a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Change:+0.01 Change:+0.37 Change:+5.00 Investors Change:-0.06 Borders Change:0.00 Change:+1.14 Change:+0.01 Permits Change:0.00 Change:+1.49 Doing Business 2018 Russian Federation Change:+0.10 Starting a Business This topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sized limited liability company to start up and formally operate in economy’s largest business city. To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has start-up capital equivalent to 10 times income per capita, engages in general industrial or commercial activities and employs between 10 and 50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two types of local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the other by 5 married men. The distance to frontier score for each indicator is the average of the scores obtained for each of the component indicators. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally start and operate a To make the data comparable across economies, several assumptions company (number) about the business and the procedures are used. It is assumed that any required information is readily available and that the entrepreneur will pay Pre-registration (for example, name verification no bribes. or reservation, notarization) Registration in economy’s largest business city The business: - Is a limited liability company (or its legal equivalent). If there is more than Post-registration (for example, social security one type of limited liability company in the economy, the most common registration, company seal) among domestic rms is chosen. Information on the most common form is Obtaining approval from spouse to start business obtained from incorporation lawyers or the statistical o ce. or leave home to register company - Operates in the economy’s largest business city and the entire o ce Obtaining any gender-specific permission that space is approximately 929 square meters (10,000 square feet). For 11 can impact company registration, company economies the data are also collected for the second largest business city. operations and process of getting national - Is 100% domestically owned and has ve owners, none of whom is a legal identity card entity; and has a start-up capital of 10 times income per capita and has a Time required to complete each procedure turnover of at least 100 times income per capita. (calendar days) - Performs general industrial or commercial activities, such as the production or sale of goods or services to the public. The business does Does not include time spent gathering not perform foreign trade activities and does not handle products subject information to a special tax regime, for example, liquor or tobacco. It does not use Each procedure starts on a separate day (2 heavily polluting production processes. procedures cannot start on the same day) - Leases the commercial plant or o ces and is not a proprietor of real Procedures fully completed online are recorded estate and the amount of the annual lease for the o ce space is equivalent as ½ day to 1 times income per capita. Procedure is considered completed once final - Does not qualify for investment incentives or any special bene ts. document is received - Has at least 10 and up to 50 employees one month after the commencement of operations, all of whom are domestic nationals. No prior contact with officials - Has a company deed 10 pages long. Cost required to complete each procedure (% of The owners: income per capita) - Have reached the legal age of majority. If there is no legal age of majority, Official costs only, no bribes they are assumed to be 30 years old. No professional fees unless services required by - Are sane, competent, in good health and have no criminal record. law or commonly used in practice - Are married and the marriage is monogamous and registered with the authorities. Paid-in minimum capital (% of income per capita) - Where the answer di ers according to the legal system applicable to the Funds deposited in a bank or with third party woman or man in question (as may be the case in economies where there before registration or up to 3 months after is legal plurality), the answer used will be the one that applies to the incorporation majority of the population. Page 5   Starting a Business - Moscow before registration or up to 3 months after is legal plurality), the answer used will be the one that applies to the incorporation majority of the population. Doing Business 2018 Russian Federation Starting a Business - Moscow Standardized Company Legal form Limited Liability Company (OOO) Paid-in minimum capital requirement RUB 0 City Covered Moscow Europe & OECD high Indicator Moscow Central Asia income Overall Best Performer Procedure – Men (number) 4 5.2 4.9 1.00 (New Zealand) Time – Men (days) 11 10.1 8.5 0.50 (New Zealand) Cost – Men (% of income per capita) 1.1 4.4 3.1 0.00 (United Kingdom) Procedure – Women (number) 4 5.2 4.9 1.00 (New Zealand) Time – Women (days) 11 10.1 8.5 0.50 (New Zealand) Cost – Women (% of income per capita) 1.1 4.4 3.1 0.00 (United Kingdom) Paid-in min. capital (% of income per capita) 0.0 3.4 8.7 0.00 (113 Economies) Figure – Starting a Business in Russia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 92.81: Moscow 85.84: Mexico (Rank: 90) 85.47: China (Rank: 93) 65.05: Brazil (Rank: 176) Note: The ranking of economies on the ease of starting a business is determined by sorting their distance to frontier scores for starting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Starting a Business in Moscow – Procedure, Time and Cost Time Cost 0.8 10 0.7 ome per capita) 0.6 8 0.5 (days) 6 Page 6   0.4 starting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Russian Federation Figure – Starting a Business in Moscow – Procedure, Time and Cost Time Cost 0.8 10 0.7 Cost (% of income per capita) 0.6 8 0.5 Time (days) 6 0.4 4 0.3 0.2 2 0.1 0 0 1 2 3 4 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Details – Starting a Business in Moscow – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Notarize company registration application 1 day RUB 200 per Agency : Notary Public signature (stamp duty) + RUB 1,000 Each founder must ll out and sign a standard registration application, (fee for technical which must be notarized. There is a stamp duty of RUB200 per signature. In work) addition to the stamp duty, notaries charge the fees for technical work in amount of RUB 1,000 (in case of certifying signature of individual) or RUB 1,500 (in case of certifying signature of a company representative) per document. Starting from May 5, 2014 this procedure became optional. If the founder is able to attend the Tax Service o ce and le all the documents in person, the application does not have to be notarized and the tax o cer can certify the founder’s signature instead. However, this is possible only in case when all the founders are able to visit the Tax Service in person, otherwise the application must be notarized. 2 Pay registration fee and register with the uni ed register at the Federal 7 days RUB 4,000 Tax Service on the local level, obtain state registration number and identi cation number of taxpayer (INN) Agency : Federal Tax Service The company must submit the following documents for registration: • Resolution of the founders on the establishment of the company (Minutes of the general meeting of founders); Page 7   • Charter (2 originals required, one is stamped by the Federal Tax Services (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Doing Business 2018 Russian Federation Details – Starting a Business in Moscow – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Notarize company registration application 1 day RUB 200 per Agency : Notary Public signature (stamp duty) + RUB 1,000 Each founder must ll out and sign a standard registration application, (fee for technical which must be notarized. There is a stamp duty of RUB200 per signature. In work) addition to the stamp duty, notaries charge the fees for technical work in amount of RUB 1,000 (in case of certifying signature of individual) or RUB 1,500 (in case of certifying signature of a company representative) per document. Starting from May 5, 2014 this procedure became optional. If the founder is able to attend the Tax Service o ce and le all the documents in person, the application does not have to be notarized and the tax o cer can certify the founder’s signature instead. However, this is possible only in case when all the founders are able to visit the Tax Service in person, otherwise the application must be notarized. 2 Pay registration fee and register with the uni ed register at the Federal 7 days RUB 4,000 Tax Service on the local level, obtain state registration number and identi cation number of taxpayer (INN) Agency : Federal Tax Service The company must submit the following documents for registration: • Resolution of the founders on the establishment of the company (Minutes of the general meeting of founders); • Charter (2 originals required, one is stamped by the Federal Tax Services and returned to applicants after the registration); • Notarized Registration Application; • Receipt of payment of the state registration fee; • Document Certifying the Physical Address of the New Company (this could be a lease agreement or a letter by the property owner of the leased property, certi ed with signature and building company’s stamp. If the leasing o ce space is from an individual owner this document would need notarization.) It is also required to le a notarized power of attorney, if the documents are led by any person other than founder. The tax authorities sometimes implement a number of additional requirements, and failure to comply may lead to the rejection of the application. At the time of application, the applicant receives a con rmation slip, which speci es the date that the registration will be complete and ready for pick up. Starting from December 29, 2015 the registration term is 3 working days, not including the day of submission of documents and the day of issuance of Page 8   At the time of application, the applicant receives a con rmation slip, which Business Doing speci es the2018 Russian date that Federation the registration will be complete and ready for pick up. Starting from December 29, 2015 the registration term is 3 working days, not including the day of submission of documents and the day of issuance of the registration certi cate. The registration fee is RUB 4,000, which can be done through a terminal machine at the o ces of the Federal Tax Service, a wire transfer or any other means which would allow the founders to provide an evidence of payment to the Federal Tax Service. After submitting the application for registration, it is possible to check the readiness of the documents online, including the results of the decision taken (decision about registration,decision about suspension, refusal of registration). In recent times, there have been more cases of suspension of registration in order to verify the information disclosed in the Uni ed State Register of Legal Entities (EGRUL). On the day of pick up, the applicant will receive a package of documents, including Abstract of the state registration, abstract of tax registration with a Tax Identi cation Number (TIN), one of the original company charters (that the applicant submitted) stamped by the government, and proof of business entry in the uni ed State Register of Legal Entities. Since January 1, 2017, Certi cates of state registration of legal entities, which were stamped on the special blanks of the Russian Federal Tax Service, have been cancelled, and the Lists of the record in the Uni ed State Register of Legal Entities are issued instead. The registration documents can be sent by mail, if an applicant indicated in the application form that he wants the documents to be delivered by mail. Upon the completion of the company's registration, the Registration Authority shall send the information about the new company to the Federal State Statistics Service and the social funds (Pension Fund and Social Insurance Fund) for the purposes of the company's registration with these authorities. The procedure could also be done online http://www.nalog.ru/rn77/service/gosreg_eldocs/- with electronic signature. However, obtaining online signature is costly and time consuming. In practice, most businesses do not utilize the online services. The online service has been available since 2012. 3 Make a company seal 1 day RUB 500 Agency : Seal-making service On 6 April 2015, the President of the Russian Federation signed Federal Law #82 that eliminates requirement for a company seal. However, in practice, majority of the businesses still obtain a company seal as part of the process of starting a business. If the new company decides to have a seal it must insert the respective provision to its Articles of Association. A basic company seal typically costs RUB 500. More sophisticated seals can cost RUB 1,000-1,500. 4 Open the company bank account 2 days free if done at the Agency : Bank bank; RUB 200 (signatures and bank According to the Central Bank of Russian Federation instruction No. 153-I card) + RUR 1,000 from May 30, 2014, the following documents are required in order to open a Page 9   (notary fees) business bank account: A basic company seal typically costs RUB 500. More sophisticated seals can Doing cost RUB 1,000-1,500. Business 2018 Russian Federation 4 Open the company bank account 2 days free if done at the Agency : Bank bank; RUB 200 (signatures and bank According to the Central Bank of Russian Federation instruction No. 153-I card) + RUR 1,000 from May 30, 2014, the following documents are required in order to open a (notary fees) business bank account: approximately if done with the notary • A list from Uni ed State Register of Legal Entities; • Founding documents of the legal entity; • Certi cate of tax registration; • The license (permit) issued for a legal entity if such licenses (permits) are directly related to the capacity of the legal entity; • Bank signature card; • Documents con rming authorities of the persons de ned in bank signature card; • Documents con rming authorities of the sole executive body of the legal entity. The signature of the entrepreneur must be certi ed and registered by a bank. There is a special form (provided by the government) that must be completed for this procedure. Entrepreneurs have two options. They can either (a) have the signature form notarized and then it can be brought to the bank when opening the bank account, or (b) they can certify the signature of the entrepreneur at the bank, when opening a bank account. According to the Federal law No. 52-FZ on Introduction of Amendments to Parts One and Two of the Tax Code of the Russian Federation and Certain Legislative Acts of the Russian Federation, as of May 1, 2014 a company is not obliged to inform the Federal Tax Service on opening, closing or changing details of the company's bank account. Applies to women only. Takes place simultaneously with previous procedure. Starting a Business - Saint Petersburg Standardized Company Legal form Limited Liability Company (OOO) Paid-in minimum capital requirement RUB 0 City Covered Saint Petersburg Saint Europe & OECD high Indicator Petersburg Central Asia income Overall Best Performer Procedure – Men (number) 4 5.2 4.9 1.00 (New Zealand) Page 10   Applies to women only. Takes place simultaneously with previous procedure. Doing Business 2018 Russian Federation Starting a Business - Saint Petersburg Standardized Company Legal form Limited Liability Company (OOO) Paid-in minimum capital requirement RUB 0 City Covered Saint Petersburg Saint Europe & OECD high Indicator Petersburg Central Asia income Overall Best Performer Procedure – Men (number) 4 5.2 4.9 1.00 (New Zealand) Time – Men (days) 8 10.1 8.5 0.50 (New Zealand) Cost – Men (% of income per capita) 1.1 4.4 3.1 0.00 (United Kingdom) Procedure – Women (number) 4 5.2 4.9 1.00 (New Zealand) Time – Women (days) 8 10.1 8.5 0.50 (New Zealand) Cost – Women (% of income per capita) 1.1 4.4 3.1 0.00 (United Kingdom) Paid-in min. capital (% of income per capita) 0.0 3.4 8.7 0.00 (113 Economies) Figure – Starting a Business in Russia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 93.56: Saint Petersburg 85.84: Mexico (Rank: 90) 85.47: China (Rank: 93) 65.05: Brazil (Rank: 176) Note: The ranking of economies on the ease of starting a business is determined by sorting their distance to frontier scores for starting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Starting a Business in Saint Petersburg – Procedure, Time and Cost Time Cost 8 0.8 7 0.7 ome per capita) 6 0.6 5 0.5 (days) Page 11   4 0.4 starting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Russian Federation Figure – Starting a Business in Saint Petersburg – Procedure, Time and Cost Time Cost 8 0.8 7 0.7 Cost (% of income per capita) 6 0.6 5 0.5 Time (days) 4 0.4 3 0.3 2 0.2 1 0.1 0 0 1 2 3 4 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Details – Starting a Business in Saint Petersburg – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Notarize company registration application 1 day RUB 200 per Agency : Notary Public signature (stamp duty) + RUB 700 (fee Each founder must ll out and sign a standard registration application, for technical work) which must be notarized. There is a stamp duty of RUB200 per signature. In addition to the stamp duty, a notary will charge the fee for technical work related to certifying the signatures in amount of RUB700. Starting from May 5, 2014 this procedure became optional. If the founder is able to attend the Uni ed State Register and le all the documents in person, the application does not have to be notarized and the registration o cer can certify the founder’s signature instead. However, this is possible only in case when all the founders are able to visit the Uni ed State Register in person, otherwise the application must be notarized. 2 Pay the Registration Fee and Registration with the Uni ed State Register 5 days RUB 4,000 Agency : Federal Tax Service Documents needed to start a business in Saint Petersburg: 1. Application for state registration of a legal entity upon its foundation; 2. Decision to found a company formalized by sole founder decision or protocol of the general meeting of founders; 3. Articles of incorporation of a legal entity (charter) (in two original copies – if led in hard copy); 4. documents proving the registered address of the new company (this could be a lease or sub-lease agreement, guarantee letter from the owner of the leased property con rming the intention to conclude lease agreement upon registration of the new company); 5. Receipt of payment of the registration fee. Page 12   Payment of the stamp duty can be made at the payment terminal by the (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Doing Business 2018 Russian Federation Details – Starting a Business in Saint Petersburg – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Notarize company registration application 1 day RUB 200 per Agency : Notary Public signature (stamp duty) + RUB 700 (fee Each founder must ll out and sign a standard registration application, for technical work) which must be notarized. There is a stamp duty of RUB200 per signature. In addition to the stamp duty, a notary will charge the fee for technical work related to certifying the signatures in amount of RUB700. Starting from May 5, 2014 this procedure became optional. If the founder is able to attend the Uni ed State Register and le all the documents in person, the application does not have to be notarized and the registration o cer can certify the founder’s signature instead. However, this is possible only in case when all the founders are able to visit the Uni ed State Register in person, otherwise the application must be notarized. 2 Pay the Registration Fee and Registration with the Uni ed State Register 5 days RUB 4,000 Agency : Federal Tax Service Documents needed to start a business in Saint Petersburg: 1. Application for state registration of a legal entity upon its foundation; 2. Decision to found a company formalized by sole founder decision or protocol of the general meeting of founders; 3. Articles of incorporation of a legal entity (charter) (in two original copies – if led in hard copy); 4. documents proving the registered address of the new company (this could be a lease or sub-lease agreement, guarantee letter from the owner of the leased property con rming the intention to conclude lease agreement upon registration of the new company); 5. Receipt of payment of the registration fee. Payment of the stamp duty can be made at the payment terminal by the registering window. 3 Make a seal in a private company 1 day RUB 350 Agency : Seal maker On 6 April 2015, the President of the Russian Federation signed Federal Law #82 that eliminates requirement for a company seal. However, in practice, majority of the businesses still obtain a company seal as part of the process of starting a business. If the new company decides to have a seal it must insert the respective provision to its Articles of Association. The cost of acquiring a company seal at the average market price is RUB 350. 4 Open a company bank account 1 day RUB 500 Agency : Commercial Bank Fees may vary depending on the bank. According to the Federal law No. 52-FZ on Introduction of Amendments to Parts One and Two of the Tax Code of the Russian Federation and Certain Legislative Acts of the Russian Federation, as of May 1, 2014 a company is not obliged to inform the Federal Tax Service on opening, closing or changing details of the company's bank account. This is done automatically by the bank. Applies to women only. Page 13   Doing The cost of acquiring Business a company 2018 Russian seal at the average market price is RUB 350. Federation 4 Open a company bank account 1 day RUB 500 Agency : Commercial Bank Fees may vary depending on the bank. According to the Federal law No. 52-FZ on Introduction of Amendments to Parts One and Two of the Tax Code of the Russian Federation and Certain Legislative Acts of the Russian Federation, as of May 1, 2014 a company is not obliged to inform the Federal Tax Service on opening, closing or changing details of the company's bank account. This is done automatically by the bank. Applies to women only. Takes place simultaneously with previous procedure. Dealing with Construction Permits This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required noti cations, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional certi cation requirements. The most recent round of data collection was completed in June 2017. See the methodology for more information What the indicators measure Case study assumptions Procedures to legally build a warehouse (number) To make the data comparable across economies, several assumptions about the construction company, the warehouse project and the utility Submitting all relevant documents and obtaining connections are used. all necessary clearances, licenses, permits and certificates The construction company (BuildCo): Submitting all required notifications and - Is a limited liability company (or its legal equivalent) and operates in the receiving all necessary inspections economy’s largest business city. For 11 economies the data are also collected for the second largest business city. Obtaining utility connections for water and - Is 100% domestically and privately owned; has ve owners, none of whom sewerage is a legal entity. Has a licensed architect and a licensed engineer, both Registering and selling the warehouse after its registered with the local association of architects or engineers. BuildCo is completion not assumed to have any other employees who are technical or licensed Time required to complete each procedure experts, such as geological or topographical experts. (calendar days) - Owns the land on which the warehouse will be built and will sell the warehouse upon its completion. Does not include time spent gathering information The warehouse: Each procedure starts on a separate day— - Will be used for general storage activities, such as storage of books or though procedures that can be fully completed stationery. online are an exception to this rule - Will have two stories, both above ground, with a total constructed area of Procedure is considered completed once final approximately 1,300.6 square meters (14,000 square feet). Each oor will document is received be 3 meters (9 feet, 10 inches) high and will be located on a land plot of No prior contact with officials approximately 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the warehouse is valued at 50 times income per capita. Cost required to complete each procedure (% of - Will have complete architectural and technical plans prepared by a warehouse value) licensed architect. If preparation of the plans requires such steps as Official costs only, no bribes obtaining further documentation or getting prior approvals from external Building quality control index (0-15) agencies, these are counted as procedures. - Will take 30 weeks to construct (excluding all delays due to administrative Sum of the scores of six component indices: and regulatory requirements). Page 14   Quality of building regulations (0-2) Applies to women only. Takes place simultaneously with previous procedure. Doing Business 2018 Russian Federation Dealing with Construction Permits This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required noti cations, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional certi cation requirements. The most recent round of data collection was completed in June 2017. See the methodology for more information What the indicators measure Case study assumptions Procedures to legally build a warehouse (number) To make the data comparable across economies, several assumptions about the construction company, the warehouse project and the utility Submitting all relevant documents and obtaining connections are used. all necessary clearances, licenses, permits and certificates The construction company (BuildCo): Submitting all required notifications and - Is a limited liability company (or its legal equivalent) and operates in the receiving all necessary inspections economy’s largest business city. For 11 economies the data are also collected for the second largest business city. Obtaining utility connections for water and - Is 100% domestically and privately owned; has ve owners, none of whom sewerage is a legal entity. Has a licensed architect and a licensed engineer, both Registering and selling the warehouse after its registered with the local association of architects or engineers. BuildCo is completion not assumed to have any other employees who are technical or licensed Time required to complete each procedure experts, such as geological or topographical experts. (calendar days) - Owns the land on which the warehouse will be built and will sell the warehouse upon its completion. Does not include time spent gathering information The warehouse: Each procedure starts on a separate day— - Will be used for general storage activities, such as storage of books or though procedures that can be fully completed stationery. online are an exception to this rule - Will have two stories, both above ground, with a total constructed area of Procedure is considered completed once final approximately 1,300.6 square meters (14,000 square feet). Each oor will document is received be 3 meters (9 feet, 10 inches) high and will be located on a land plot of No prior contact with officials approximately 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the warehouse is valued at 50 times income per capita. Cost required to complete each procedure (% of - Will have complete architectural and technical plans prepared by a warehouse value) licensed architect. If preparation of the plans requires such steps as Official costs only, no bribes obtaining further documentation or getting prior approvals from external Building quality control index (0-15) agencies, these are counted as procedures. - Will take 30 weeks to construct (excluding all delays due to administrative Sum of the scores of six component indices: and regulatory requirements). Quality of building regulations (0-2) The water and sewerage connections: Quality control before construction (0-1) - Will be 150 meters (492 feet) from the existing water source and sewer Quality control during construction (0-3) tap. If there is no water delivery infrastructure in the economy, a borehole Quality control after construction (0-3) will be dug. If there is no sewerage infrastructure, a septic tank in the smallest size available will be installed or built. Liability and insurance regimes (0-2) - Will have an average water use of 662 liters (175 gallons) a day and an Professional certifications (0-4) average wastewater ow of 568 liters (150 gallons) a day. Will have a peak water use of 1,325 liters (350 gallons) a day and a peak wastewater ow of 1,136 liters (300 gallons) a day. - Will have a constant level of water demand and wastewater ow throughout the year; will be 1 inch in diameter for the water connection and 4 inches in diameter for the sewerage connection. Dealing with Construction Permits - Moscow Page 15   and 4 inches in diameter for the sewerage connection. Doing Business 2018 Russian Federation Dealing with Construction Permits - Moscow Standardized Warehouse Estimated value of warehouse RUB 28,539,762.40 City Covered Moscow Europe & OECD high Indicator Moscow Central Asia income Overall Best Performer Procedures (number) 15 16.0 12.5 7.00 (Denmark) Time (days) 230.5 168.3 154.6 27.5 (Korea, Rep.) Cost (% of warehouse value) 1.4 4.0 1.6 0.10 (5 Economies) Building quality control index (0-15) 10.0 11.4 11.4 15.00 (3 Economies) Figure – Dealing with Construction Permits in Russia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 68.28: Mexico (Rank: 87) 65.18: Moscow 49.83: Brazil (Rank: 170) 47.28: China (Rank: 172) Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their distance to frontier scores for dealing with construction permits. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Dealing with Construction Permits in Moscow – Procedure, Time and Cost Time Cost 0.4 200 0.35 Cost (% of warehouse value) 0.3 150 0.25 Time (days) 0.2 100 0.15 0.1 50 0.05 0 0 1 2 3 *4 5 6 7 *8 9 10 11 12 13 14 15 Page 16   component indicators. Doing Business 2018 Russian Federation Figure – Dealing with Construction Permits in Moscow – Procedure, Time and Cost Time Cost 0.4 200 0.35 Cost (% of warehouse value) 0.3 150 0.25 Time (days) 0.2 100 0.15 0.1 50 0.05 0 0 1 2 3 *4 5 6 7 *8 9 10 11 12 13 14 15 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Dealing with Construction Permits in Moscow and comparator economies – Measure of Quality 14 11.7 11.4 12 10.0 9.6 10 9.0 Index score 8 6 4 2 0 Moscow Brazil China Mexico Europe & Central Asia Details – Dealing with Construction Permits in Moscow – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Request and obtain the development plan of land plot (GPZU) at the 30 days no charge Moscow Architecture and City Planning Committee Agency : The Moscow Architecture and City Planning Committee The development plan of land plot (GPZU) must be obtained prior to obtaining any studies of the land plot or the technical conditions. It is the rst step in the sequence of steps to obtain a building permit. A one-stop shop has been implemented at the Moscow Architecture and City Planning Committee (MoskomArchitektura) in order to deal with all procedures related to land. BuildCo does not have to visit each agency in order to obtain the documents. Rather, BuildCo applies for the copy of the Page 17   development plan of the land plot at MoskomArchitektura and they take care Moscow Brazil China Mexico Europe & Central Asia Doing Business 2018 Russian Federation Details – Dealing with Construction Permits in Moscow – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Request and obtain the development plan of land plot (GPZU) at the 30 days no charge Moscow Architecture and City Planning Committee Agency : The Moscow Architecture and City Planning Committee The development plan of land plot (GPZU) must be obtained prior to obtaining any studies of the land plot or the technical conditions. It is the rst step in the sequence of steps to obtain a building permit. A one-stop shop has been implemented at the Moscow Architecture and City Planning Committee (MoskomArchitektura) in order to deal with all procedures related to land. BuildCo does not have to visit each agency in order to obtain the documents. Rather, BuildCo applies for the copy of the development plan of the land plot at MoskomArchitektura and they take care of all the steps. 2 Request a topographic survey of the land plot 30 days RUB 100,000 Agency : Private Organization BuildCo must obtain a land survey at a scale of 1:500/1 by a specialized organization. A report is prepared as a result of the topographic survey with a layout of the building and structure. 3 Request and obtain an engineering, geological and ecological survey and 45 days RUB 100,000 obtain Act of Moscow Geological - Geodesic Department Agency : Mosgorgeotrest or Private Licensed Companies Information about conditions of the land plot (geological, geodesic and ecological) is needed for project design. There are 5 types of mandatory engineering surveys. All or a few of them are requested, depending on the land plot and surrounding territorial conditions. In the Doing Business case, there could be 2 -- 3 types of surveys. Mosgorgeotrest conduct these surveys, but private licensed companies can also conduct these surveys but in that case, the companies are requested to get the results ‘stamped’ by Mosgorgeotrest. 4 Request and obtain technical conditions for water and sewage 30 days no charge Agency : Moscow Water and Sewage Company - Mosvodokanal The technical conditions are de ned by the Moscow Water and Sewage Company. 5 Obtain compliance certi cate from Moscow Water and Sewage Company 30 days no charge Agency : Moscow Water and Sewage Company - Mosvodokanal BuildCo must obtain approval of the nal construction design from the Moscow Water and Sewage Company, which will verify if the nal design is in compliance with the technical conditions. 6 Request and obtain permission for construction 14 days no charge Agency : Moscow State Committee of Construction Supervision To obtain the building permit (permission for construction), BuildCo must submit the following documents to the Moscow State Committee of Page 18   Moscow Water and Sewage Company, which will verify if the nal design is in Business with Doing compliance 2018 Russianconditions. the technical Federation 6 Request and obtain permission for construction 14 days no charge Agency : Moscow State Committee of Construction Supervision To obtain the building permit (permission for construction), BuildCo must submit the following documents to the Moscow State Committee of Construction Supervision: • Application form • Documents con rming title to the land • Town (planning) plan of land • Relevant project documentation After reforms implemented in 2006, the statutory time line of issuing the permit was reduced from 30 business days to 10 business. The permit is free of charge. 7 Request and obtain an opening order of production of works from the 7 days no charge Union of Administrative Technical Inspections (UATI) Agency : Union of Administrative Technical Inspections (UATI) The construction company must obtain an order of conducting of construction works and for building the utility networks. It is possible to obtain the order at once or in stages, individually for each network and for each phase of construction. The list of required document to apply for this order are listed on the website oati.mos.ru. The order must be closed after completion of construction works. 8 Receive control-geodesic survey from Mosgorgeotrest 1 day RUB 30,000 Agency : Mosgorgeotrest Prior to beginning the construction, Mosgorgeotrest conducts topographic and geodesic surveys (geodesic base, general construction plan). This is conducted in order to verify the compliance of the project design documentation with the existing schemes of underground infrastructure lines. 9 Receive random inspection during construction 1 day no charge Agency : Union of Administrative Technical Inspections (UATI) Construction activities are not interrupted during inspections. 10 Notify Moscow Water and Sewage Company (Mosvodokanal) of 1 day no charge completion of construction works Agency : Moscow Water and Sewage Company - Mosvodokanal When construction works are completed, BuildCo noti es Moscow Water and Sewage Company (Mosvodokanal) that the construction site is ready for inspection and water and sewage connection. 11 Connect to water and sewage services 30 days RUB 109,259 Agency : Moscow Water and Sewage Company - Mosvodokanal An agreement must be concluded between BuildCo and the Moscow Water and Sewage Company. The connection to water service is then installed. 12 Close the order on conducting of construction works from the Union of 0.5 days no charge Administrative Technical Inspections (UATI) Agency : Union of Administrative Technical Inspections (UATI) After the completion of construction works, it is mandatory to close the order on conducting of construction works from the Union of Administrative Page 19   Technical Inspections (UATI). The request to close the order is submitted An agreement must be concluded between BuildCo and the Moscow Water Doing and Company. Sewage 2018 Business The connection Russian to water service is then installed. Federation 12 Close the order on conducting of construction works from the Union of 0.5 days no charge Administrative Technical Inspections (UATI) Agency : Union of Administrative Technical Inspections (UATI) After the completion of construction works, it is mandatory to close the order on conducting of construction works from the Union of Administrative Technical Inspections (UATI). The request to close the order is submitted online at www.stroi.mos.ru. The documents that are required for the closing of the order are requested by UATI through an online interaction with other agencies, without the involvement of the investor. The closing of the order can take up to 8 business days. However, the investor does not need to wait for for the order to be o cially close before beginning other procedures, as submitting the request is su cient. The requirement to submit the request online was introduced by Resolution of the Government of Moscow № 284-PP on May 19, 2015. 13 Request and receive the disposition on operation of building (occupancy 14 days no charge permit) Agency : Moscow State Committee of Construction Supervision 14 Request and receive the technical plans / cadastre passports of the 14 days RUB 40,000 building Agency : Federal Agency for Technical Inventory 15 Register the building after completion in Rosreestr 14 days RUB 22,000 Agency : Federal Service for State Registration, Cadastre and Cartography (Rosreestr) According to the Russian Federation Civil Code, the right to own and "create" immovable things, including buildings, is subject to state registration at the Uni ed State Register of rights to immovable assets and associated transactions. To complete the registration, BuildCo must submit an application, the real property plan, and approval of the building, con rming that real property has been built. Takes place simultaneously with previous procedure. Details – Dealing with Construction Permits in Moscow – Measure of Quality Answer Score Building quality control index (0-15) 10.0 Quality of building regulations index (0-2) 2.0 How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0 Free of charge. Which requirements for obtaining a building permit are clearly speci ed in the building List of required 1.0 regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees to be paid; Required preapprovals. Page 20   Takes place simultaneously with previous procedure. Doing Business 2018 Russian Federation Details – Dealing with Construction Permits in Moscow – Measure of Quality Answer Score Building quality control index (0-15) 10.0 Quality of building regulations index (0-2) 2.0 How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0 Free of charge. Which requirements for obtaining a building permit are clearly speci ed in the building List of required 1.0 regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees to be paid; Required preapprovals. Quality control before construction index (0-1) 1.0 Which third-party entities are required by law to verify that the building plans are in Licensed 1.0 compliance with existing building regulations? (0-1) architect; Licensed engineer. Quality control during construction index (0-3) 2.0 What types of inspections (if any) are required by law to be carried out during Inspections by 1.0 construction? (0-2) in-house engineer. Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 1.0 inspections are always done in practice. Quality control after construction index (0-3) 0.0 Is there a nal inspection required by law to verify that the building was built in Final inspection 0.0 accordance with the approved plans and regulations? (0-2) is not required by law. Do legally mandated nal inspections occur in practice? (0-1) Final inspection 0.0 does not always occur in practice. Liability and insurance regimes index (0-2) 1.0 Which parties (if any) are held liable by law for structural aws or problems in the Architect or 1.0 building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) engineer; Construction company. Which parties (if any) are required by law to obtain an insurance policy to cover No party is 0.0 possible structural aws or problems in the building once it is in use (Latent Defect required by law Liability Insurance or Decennial Insurance)? (0-1) to obtain insurance . Professional certi cations index (0-4) 4.0 What are the quali cation requirements for the professional responsible for verifying Minimum 2.0 Page 21   Liability Insurance or Decennial Insurance)? (0-1) to obtain Doing Business 2018 Russian Federation insurance . Professional certi cations index (0-4) 4.0 What are the quali cation requirements for the professional responsible for verifying Minimum 2.0 that the architectural plans or drawings are in compliance with existing building number of years regulations? (0-2) of experience; University degree in architecture or engineering; Passing a certi cation exam. What are the quali cation requirements for the professional who supervises the Minimum 2.0 construction on the ground? (0-2) number of years of experience; University degree in engineering, construction or construction management; Passing a certi cation exam. Dealing with Construction Permits - Saint Petersburg Standardized Warehouse Estimated value of warehouse RUB 28,539,762.40 City Covered Saint Petersburg Saint Europe & OECD high Indicator Petersburg Central Asia income Overall Best Performer Procedures (number) 13 16.0 12.5 7.00 (Denmark) Time (days) 260 168.3 154.6 27.5 (Korea, Rep.) Cost (% of warehouse value) 1.1 4.0 1.6 0.10 (5 Economies) Building quality control index (0-15) 10.0 11.4 11.4 15.00 (3 Economies) Figure – Dealing with Construction Permits in Russia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 68.28: Mexico (Rank: 87) 65.43: Saint Petersburg 49.83: Brazil (Rank: 170) Page 22   47.28: China (Rank: 172) certi cation exam. Doing Business 2018 Russian Federation Dealing with Construction Permits - Saint Petersburg Standardized Warehouse Estimated value of warehouse RUB 28,539,762.40 City Covered Saint Petersburg Saint Europe & OECD high Indicator Petersburg Central Asia income Overall Best Performer Procedures (number) 13 16.0 12.5 7.00 (Denmark) Time (days) 260 168.3 154.6 27.5 (Korea, Rep.) Cost (% of warehouse value) 1.1 4.0 1.6 0.10 (5 Economies) Building quality control index (0-15) 10.0 11.4 11.4 15.00 (3 Economies) Figure – Dealing with Construction Permits in Russia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 68.28: Mexico (Rank: 87) 65.43: Saint Petersburg 49.83: Brazil (Rank: 170) 47.28: China (Rank: 172) Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their distance to frontier scores for dealing with construction permits. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Dealing with Construction Permits in Saint Petersburg – Procedure, Time and Cost Time Cost 0.4 250 0.35 Cost (% of warehouse value) 200 0.3 0.25 Time (days) 150 0.2 100 0.15 0.1 50 0.05 Page 23   0 0 component indicators. Doing Business 2018 Russian Federation Figure – Dealing with Construction Permits in Saint Petersburg – Procedure, Time and Cost Time Cost 0.4 250 0.35 Cost (% of warehouse value) 200 0.3 0.25 Time (days) 150 0.2 100 0.15 0.1 50 0.05 0 0 1 2 3 *4 *5 6 7 8 9 10 11 12 13 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Dealing with Construction Permits in Saint Petersburg and comparator economies – Measure of Quality 14 11.7 11.4 12 10.0 9.6 10 9.0 Index score 8 6 4 2 0 Saint Petersburg Brazil China Mexico Europe & Central Asia Details – Dealing with Construction Permits in Saint Petersburg – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Request and obtain the development plan of land plot (GPZU) 30 days no charge Agency : Saint-Petersburg Architecture and City Planning Committee The development plan of land plot (GPZU) must be obtained prior to obtaining any studies of the land plot or the technical conditions. It is the rst step in the sequence of steps to obtain a building permit. It is also required at the end of the construction in order to obtain the occupancy certi cate. 2 Request a topographic survey of the land plot 30 days RUB 100,000 Agency : Specialized Organization BuildCo must obtain a land survey at a scale of 1:500/1 by a specialized Page 24   Saint Petersburg Brazil China Mexico Europe & Central Asia Doing Business 2018 Russian Federation Details – Dealing with Construction Permits in Saint Petersburg – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Request and obtain the development plan of land plot (GPZU) 30 days no charge Agency : Saint-Petersburg Architecture and City Planning Committee The development plan of land plot (GPZU) must be obtained prior to obtaining any studies of the land plot or the technical conditions. It is the rst step in the sequence of steps to obtain a building permit. It is also required at the end of the construction in order to obtain the occupancy certi cate. 2 Request a topographic survey of the land plot 30 days RUB 100,000 Agency : Specialized Organization BuildCo must obtain a land survey at a scale of 1:500/1 by a specialized organization. A report is prepared as a result of the topographic survey with a layout of the building and structure. 3 Request and obtain an engineering, geological and ecological survey of 45 days RUB 100,000 the land plot Agency : Licensed Private Company Information about conditions of the land plot (geological, geodesic and ecological) is needed for project design. There are 5 types of mandatory engineering surveys. All or a few of them are requested, depending on the land plot and surrounding territorial conditions. In the Doing Business case, there could be 2 -- 3 types of surveys. Engineering surveys are performed by private companies which belong to self-regulated organizations (SRO). 4 Request and obtain technical conditions for water and sewage 30 days no charge Agency : Saint-Petersburg Water and Sewage Company (Vodokanal) After obtaining a topographic survey of the land plot and an engineering, geological, and ecological survey, BuildCo can obtain the technical conditions for water and sewage. According to the applicable regulations, the technical conditions should be provided within 16 business days. However, in practice it takes about 45 days to obtain the technical conditions for the water and sewage connection. 5 Request terms of connection to utility networks and request a contract 30 days no charge for water and sewage connection Agency : Saint-Petersburg Water and Sewage Company (Vodokanal) BuildCo submits the following documents to Vodokanal of Saint-Petersburg in order to request a water and sewage connection: - Copies of constituent documents (registration documents and other supporting documentation verifying the legal status of BuildCo) - Cadastral plan of the land - Technical conditions for water and sewage - Estimated balance of water consumption and wastewater usage - Topographic map of the land on a scale of 1:500 - Urban development plan for the land 6 Request and obtain permission for construction 14 days no charge Agency : State Agency of Construction Supervision and Expertise of Saint- Page 25   Petersburg - Topographic map of the land on a scale of 1:500 Urban development Doing -Business plan for the 2018 Russian land Federation 6 Request and obtain permission for construction 14 days no charge Agency : State Agency of Construction Supervision and Expertise of Saint- Petersburg To obtain the building permit (permission for construction), BuildCo must submit the following documents to the State Agency of Construction Supervision and Expertise of Saint-Petersburg: • Application form • Documents con rming title to the land • Town (planning) plan of land • Relevant project documentation The permit is free of charge. 7 Request and obtain an opening order of production of works from the 14 days no charge State Administrative Technical Inspectorate Agency : State Administrative Technical Inspectorate 8 Receive inspection from the State Agency of Construction Supervision 1 day no charge and Expertise to check working conditions Agency : State Agency of Construction Supervision and Expertise of Saint- Petersburg The State Agency of Construction Supervision and Expertise of Saint- Petersburg will generally perform one inspection during construction to check that the working conditions at the construction site are appropriate for the workers and that there is temporary electricity, running water, and safety mechanisms in place. 9 Obtain connection to water and sewage services 30 days RUB 37,161 Agency : Saint-Petersburg Water and Sewage Company (Vodokanal) BuildCo signs the contract prepared by the water and sewage company and requests the date of connection to water and sewage services. The water and sewage company will provide the connection according to the date speci ed in the contract. 10 Close the order on conducting of construction works from the State 16 days no charge Administrative Technical Inspectorate Agency : State Administrative Technical Inspectorate After the completion of construction works, it is mandatory to close the order on conducting of construction works from the State Administrative Technical Inspectorate. According to the Decree of the State administrative and technical inspection of the Government of St. Petersburg from January 22, 2008 N 4 "On Approval of Rules of earthwork, construction and repair work related to the improvement of St. Petersburg", the closing of the order on conducting of construction works shall be done within 12 business days (16 calendar days). 11 Request and receive the disposition on operation of the building 30 days no charge (occupancy permit) Agency : State Agency of Construction Supervision and Expertise of Saint- Petersburg In order to obtain permission to use the building, it is necessary to apply to the State Agency of Construction Supervision and Expertise of Saint- Page 26   Petersburg with the following documents: business days (16 calendar days). Doing Business 2018 Russian Federation 11 Request and receive the disposition on operation of the building 30 days no charge (occupancy permit) Agency : State Agency of Construction Supervision and Expertise of Saint- Petersburg In order to obtain permission to use the building, it is necessary to apply to the State Agency of Construction Supervision and Expertise of Saint- Petersburg with the following documents: 1) land ownership documents 2) development plan of the land plot 3) building permit 4) a document con rming that the constructed building meets the requirements of technical regulations signed by the person responsible for conducting the construction works 5) a detailed map showing the location of the construction, location of the utility networks within the boundaries of the land plot and the schematic plan of the land plot. The document should be signed by the person responsible for conducting the construction works. 12 Request and obtain a technical plan of the building 20 days RUB 55,000 Agency : Cadastral Engineers / Bureau of Technical Inventory BuildCo has to provide technical and cadastral plans of the building in order to be able to register the building at the Federal Service for State Registration, Cadastre and Cartography. Preparation of the technical plan of the building can be done by either a licensed cadatstral engineer or the Bureau of Technical Inventory. The preparation of the technical plan can take from 10 to 30 days. 13 Register the building at Rosreestr 30 days RUB 22,000 Agency : Federal Service for State Registration, Cadastre and Cartography (Rosreestr) According to the Russian Federation Civil Code, the right to own and "create" immovable things, including buildings, is subject to state registration at the Uni ed State Register of rights to immovable assets and associated transactions. Takes place simultaneously with previous procedure. Details – Dealing with Construction Permits in Saint Petersburg – Measure of Quality Answer Score Building quality control index (0-15) 10.0 Quality of building regulations index (0-2) 2.0 How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0 Free of charge. Which requirements for obtaining a building permit are clearly speci ed in the building List of required 1.0 regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees to be paid; Required preapprovals. Page 27   Quality control before construction index (0-1) 1.0 Takes place simultaneously with previous procedure. Doing Business 2018 Russian Federation Details – Dealing with Construction Permits in Saint Petersburg – Measure of Quality Answer Score Building quality control index (0-15) 10.0 Quality of building regulations index (0-2) 2.0 How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0 Free of charge. Which requirements for obtaining a building permit are clearly speci ed in the building List of required 1.0 regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees to be paid; Required preapprovals. Quality control before construction index (0-1) 1.0 Which third-party entities are required by law to verify that the building plans are in Licensed 1.0 compliance with existing building regulations? (0-1) architect; Licensed engineer. Quality control during construction index (0-3) 2.0 What types of inspections (if any) are required by law to be carried out during Inspections by 1.0 construction? (0-2) in-house engineer. Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 1.0 inspections are always done in practice. Quality control after construction index (0-3) 0.0 Is there a nal inspection required by law to verify that the building was built in Final inspection 0.0 accordance with the approved plans and regulations? (0-2) is not required by law. Do legally mandated nal inspections occur in practice? (0-1) Final inspection 0.0 does not always occur in practice. Liability and insurance regimes index (0-2) 1.0 Which parties (if any) are held liable by law for structural aws or problems in the Architect or 1.0 building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) engineer; Construction company. Which parties (if any) are required by law to obtain an insurance policy to cover No party is 0.0 possible structural aws or problems in the building once it is in use (Latent Defect required by law Liability Insurance or Decennial Insurance)? (0-1) to obtain insurance . Professional certi cations index (0-4) 4.0 What are the quali cation requirements for the professional responsible for verifying Minimum 2.0 Page 28   Liability Insurance or Decennial Insurance)? (0-1) to obtain Doing Business 2018 Russian Federation insurance . Professional certi cations index (0-4) 4.0 What are the quali cation requirements for the professional responsible for verifying Minimum 2.0 that the architectural plans or drawings are in compliance with existing building number of years regulations? (0-2) of experience; University degree in architecture or engineering; Passing a certi cation exam. What are the quali cation requirements for the professional who supervises the Minimum 2.0 construction on the ground? (0-2) number of years of experience; University degree in engineering, construction or construction management; Passing a certi cation exam. Getting Electricity This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally, the reliability of supply and transparency of tari s index measures reliability of supply, transparency of tari s and the price of electricity. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions are (number) used. Submitting all relevant documents and obtaining The warehouse: all necessary clearances and permits - Is owned by a local entrepreneur and is used for storage of goods. Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the receiving all necessary inspections data are also collected for the second largest business city. Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is purchasing material for these works in an area with no physical constraints. For example, the property is not Concluding any necessary supply contract and near a railway. obtaining final supply - Is a new construction and is being connected to electricity for the rst time. Time required to complete each procedure - Has two stories with a total surface area of approximately 1,300.6 square (calendar days) meters (14,000 square feet). The plot of land on which it is built is 929 Is at least 1 calendar day square meters (10,000 square feet). Each procedure starts on a separate day Does not include time spent gathering The electricity connection: information - Is a permanent one with a three-phase, four-wire Y connection with a subscribed capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1, Reflects the time spent in practice, with little when 1 kVA = 1 kilowatt (kW). follow-up and no prior contact with officials - Has a length of 150 meters. The connection is to either the low- Page 29   or certi cation exam. Doing Business 2018 Russian Federation Getting Electricity This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally, the reliability of supply and transparency of tari s index measures reliability of supply, transparency of tari s and the price of electricity. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions are (number) used. Submitting all relevant documents and obtaining The warehouse: all necessary clearances and permits - Is owned by a local entrepreneur and is used for storage of goods. Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the receiving all necessary inspections data are also collected for the second largest business city. Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is purchasing material for these works in an area with no physical constraints. For example, the property is not Concluding any necessary supply contract and near a railway. obtaining final supply - Is a new construction and is being connected to electricity for the rst time. Time required to complete each procedure - Has two stories with a total surface area of approximately 1,300.6 square (calendar days) meters (14,000 square feet). The plot of land on which it is built is 929 Is at least 1 calendar day square meters (10,000 square feet). Each procedure starts on a separate day Does not include time spent gathering The electricity connection: information - Is a permanent one with a three-phase, four-wire Y connection with a subscribed capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1, Reflects the time spent in practice, with little when 1 kVA = 1 kilowatt (kW). follow-up and no prior contact with officials - Has a length of 150 meters. The connection is to either the low- or Cost required to complete each procedure (% of medium-voltage distribution network and is either overhead or income per capita) underground, whichever is more common in the area where the warehouse is located and requires works that involve the crossing of a 10- Official costs only, no bribes meter road (such as by excavation or overhead lines) but are all carried out Value added tax excluded on public land. There is no crossing of other owners’ private property The reliability of supply and transparency of because the warehouse has access to a road. tari s index (0-8) - Does not require work to install the internal wiring of the warehouse. This has already been completed up to and including the customer’s service Duration and frequency of power outages (0–3) panel or switchboard and the meter base. Tools to monitor power outages (0–1) Tools to restore power supply (0–1) The monthly consumption: Regulatory monitoring of utilities’ performance - It is assumed that the warehouse operates 30 days a month from 9:00 (0–1) a.m. to 5:00 p.m. (8 hours a day), with equipment utilized at 80% of capacity Financial deterrents limiting outages (0–1) on average and that there are no electricity cuts (assumed for simplicity reasons) and the monthly energy consumption is 26,880 kilowatt-hours Transparency and accessibility of tariffs (0–1) (kWh); hourly consumption is 112 kWh. Price of electricity (cents per kilowatt-hour)* - If multiple electricity suppliers exist, the warehouse is served by the Price based on monthly bill for commercial cheapest supplier. warehouse in case study - Tari s e ective in March of the current year are used for calculation of the price of electricity for the warehouse. Although March has 31 days, for * N o t e : Doing Business m e a s u r e s t h e p r i c e o f calculation purposes only 30 days are used. electricity, but it is not included in the distance to frontier score nor the ranking on the ease of getting electricity. Page 30   Getting Electricity - Moscow frontier score nor the ranking on the ease of getting electricity. Doing Business 2018 Russian Federation Getting Electricity - Moscow Standardized Connection Price of electricity (US cents per kWh) 7.8 Name of utility MOESK City Covered Moscow Europe & OECD high Indicator Moscow Central Asia income Overall Best Performer Procedures (number) 3 5.4 4.7 2 (United Arab Emirates) Time (days) 80 113.7 79.1 10 (United Arab Emirates) Cost (% of income per capita) 35 344.3 63.0 0.00 (Japan) Reliability of supply and transparency of tariff 8 5.3 7.4 8.00 (28 Economies) index (0-8) Figure – Getting Electricity in Russia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 93.15: Moscow 82.46: Brazil (Rank: 45) 70.99: Mexico (Rank: 92) 68.83: China (Rank: 98) Note: The ranking of economies on the ease of getting electricity is determined by sorting their distance to frontier scores for getting electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Getting Electricity in Moscow – Procedure, Time and Cost Time Cost 80 40 70 35 (% of income per capita) 60 30 50 25 Time (days) 40 20 30 Page 31   15 getting electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Russian Federation Figure – Getting Electricity in Moscow – Procedure, Time and Cost Time Cost 80 40 70 35 Cost (% of income per capita) 60 30 50 25 Time (days) 40 20 30 15 20 10 10 5 0 0 1 2 3 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Getting Electricity in Moscow and comparator economies – Measure of Quality 9 8 8 7 7 6 6 5.4 Index score 5.3 5 4 3 2 1 0 Moscow Brazil China Mexico Europe & Central Asia Details – Getting Electricity in Moscow – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Submit application to MOESKand await contracts for technological 7 calendar days RUB 200,000 connection and electricity supply Agency : MOESK The application is submitted electronically through the “Personal cabinet” internet portal on technological connection on the MOESK website http://utp.moesk.ru/my/ without visiting the client services o ce, along with doing a preliminary calculation of the connection cost online. The application should be supported by the documents required by the utility, including internal wiring and equipment location plan, justi cation of the requested capacity, copy of the license of the rm which prepared the plan, documents certifying the legal status of the customer. Page 32   Within 7 days after receiving the connection application MOESK provides the Moscow Brazil China Mexico Europe & Central Asia Doing Business 2018 Russian Federation Details – Getting Electricity in Moscow – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Submit application to MOESKand await contracts for technological 7 calendar days RUB 200,000 connection and electricity supply Agency : MOESK The application is submitted electronically through the “Personal cabinet” internet portal on technological connection on the MOESK website http://utp.moesk.ru/my/ without visiting the client services o ce, along with doing a preliminary calculation of the connection cost online. The application should be supported by the documents required by the utility, including internal wiring and equipment location plan, justi cation of the requested capacity, copy of the license of the rm which prepared the plan, documents certifying the legal status of the customer. Within 7 days after receiving the connection application MOESK provides the customer with technical conditions for connection along with signed connection and supply contracts. All the documents are available online in the “Personal cabinet”, where those can be signed electronically, if the customer has a digital signature. Alternatively those can be sent to the customer via free courier service for signing. On every stage of the application processing, the applicant receives a text- message noti cation to the cellular phone indicated on the application form. It is also possible to track the status of the application by visiting the online “Personal cabinet”. Upon signing the connection contract the customer makes the payment of the connection cost. Since September 1, 2015 MOESK o ers the customers an option of paying the connection cost by installments over up to 3 years without charging any interest on the amount. 2 Await completion of external works by MOESK 66 calendar days RUB 0 Agency : MOESK Upon having the connection contract signed by the customer, the utility prepares project design for building a network for connection and obtain all approvals for construction work (such as, a permit required for the laying of underground or overhead lines), and carry out all the external works according to the contract and the technical conditions. Before energizing, utility checks the readiness of the internal network and equipment of the customer, including the meter and sealing it, to receive electric energy. If there are no any issues on the customer side, the utility energizes the object and provided the customer with the nal set of documents, including the technological connection act, the balance inventory act and attachments to the supply contract. Utility performs all work up to the land boundaries of the applicant and assumes the responsibility of the performed work, and the customer is responsible for the performance of work within the boundaries of their plot. The customer is responsible for having the internal network ready with all the necessary equipment installed, including the metering equipment. The customers have a right to design and build the internal network with their own resources, or can outsource that to a specialized electric company/utility under a separate contract. 3 Receive inspection, nal documents and connection 7 calendar days RUB 0 Page 33   Agency : MOESK own resources, or can outsource that to a specialized electric Doing company/utility Business 2018 under a separate Russian contract. Federation 3 Receive inspection, nal documents and connection 7 calendar days RUB 0 Agency : MOESK Utility conducts an inspection to check the compliance of the equipment installed on the customer side (cabling up to the metering box, and the box itself) in order to receive the connection according to the technical conditions outlined in the technological connection contract for both parties. Provides the connection documents to the customer, including the inspection certi cate, certi cate of ful llment of the obligations mentioned in the technical conditions, balance separation certi cate, certi cate of responsibilities of both sides. Takes place simultaneously with previous procedure. Details – Getting Electricity in Moscow – Measure of Quality Answer Reliability of supply and transparency of tari index (0-8) 8 Total duration and frequency of outages per customer a year (0-3) 3 System average interruption duration index (SAIDI) 0.0 System average interruption frequency index (SAIFI) 0.0 What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 5.0 Mechanisms for monitoring outages (0-1) 1 Does the distribution utility use automated tools to monitor outages? Yes Mechanisms for restoring service (0-1) 1 Does the distribution utility use automated tools to restore service? Yes Regulatory monitoring (0-1) 1 Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on Yes reliability of supply? Financial deterrents aimed at limiting outages (0-1) 1 Does the utility either pay compensation to customers or face nes by the regulator (or both) if outages Yes exceed a certain cap? Communication of tari s and tari changes (0-1) 1 Are e ective tari s available online? Yes Link to the website, if available online http://www.mosener gosbyt.ru/website/fa ces/legals/tari s-n- prices?_adf.ctrl- state=11iei8idwi_17& _afrLoop=457846438 209203& Are customers noti ed of a change in tari ahead of the billing cycle? Yes Page 34   Takes place simultaneously with previous procedure. Doing Business 2018 Russian Federation Details – Getting Electricity in Moscow – Measure of Quality Answer Reliability of supply and transparency of tari index (0-8) 8 Total duration and frequency of outages per customer a year (0-3) 3 System average interruption duration index (SAIDI) 0.0 System average interruption frequency index (SAIFI) 0.0 What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 5.0 Mechanisms for monitoring outages (0-1) 1 Does the distribution utility use automated tools to monitor outages? Yes Mechanisms for restoring service (0-1) 1 Does the distribution utility use automated tools to restore service? Yes Regulatory monitoring (0-1) 1 Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on Yes reliability of supply? Financial deterrents aimed at limiting outages (0-1) 1 Does the utility either pay compensation to customers or face nes by the regulator (or both) if outages Yes exceed a certain cap? Communication of tari s and tari changes (0-1) 1 Are e ective tari s available online? Yes Link to the website, if available online http://www.mosener gosbyt.ru/website/fa ces/legals/tari s-n- prices?_adf.ctrl- state=11iei8idwi_17& _afrLoop=457846438 209203& Are customers noti ed of a change in tari ahead of the billing cycle? Yes Note: If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tari index. If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index. If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index. Getting Electricity - Saint Petersburg Standardized Connection Price of electricity (US cents per kWh) 8.0 Page 35   If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index. Doing Business 2018 Russian Federation Getting Electricity - Saint Petersburg Standardized Connection Price of electricity (US cents per kWh) 8.0 Name of utility Lenenergo (Ленэнерго) City Covered Saint Petersburg Saint Europe & OECD high Indicator Petersburg Central Asia income Overall Best Performer Procedures (number) 3 5.4 4.7 2 (United Arab Emirates) Time (days) 90 113.7 79.1 10 (United Arab Emirates) Cost (% of income per capita) 56.5 344.3 63.0 0.00 (Japan) Reliability of supply and transparency of tariff 8 5.3 7.4 8.00 (28 Economies) index (0-8) Figure – Getting Electricity in Russia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 92.00: Saint Petersburg 82.46: Brazil (Rank: 45) 70.99: Mexico (Rank: 92) 68.83: China (Rank: 98) Note: The ranking of economies on the ease of getting electricity is determined by sorting their distance to frontier scores for getting electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Getting Electricity in Saint Petersburg – Procedure, Time and Cost Time Cost 90 60 80 50 (% of income per capita) 70 60 40 Time (days) 50 30 40 Page 36   30 20 getting electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Russian Federation Figure – Getting Electricity in Saint Petersburg – Procedure, Time and Cost Time Cost 90 60 80 50 Cost (% of income per capita) 70 60 40 Time (days) 50 30 40 30 20 20 10 10 0 0 1 2 3 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Getting Electricity in Saint Petersburg and comparator economies – Measure of Quality 9 8 8 7 7 6 6 5.4 Index score 5.3 5 4 3 2 1 0 Saint Petersburg Brazil China Mexico Europe & Central Asia Details – Getting Electricity in Saint Petersburg – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Submit application to Lenenergo and await contracts for technological 10 calendar days RUB 322,724 connection and electricity supply Agency : Lenenergo The application is submitted electronically through the “Personal cabinet” internet portal on technological connection on the Lenenergo website https://lkk.lenenergo.ru/SiteAssets/tags.aspx without visiting the client services o ce, along with doing a preliminary calculation of the connection cost online. The application should be supported by the documents required by the utility, including internal wiring and equipment location plan, justi cation of the requested capacity, copy of the license of the rm which prepared the plan, documents certifying the legal status of the customer. Page 37   Within 7 days after receiving the connection application Lenenergo provides Saint Petersburg Brazil China Mexico Europe & Central Asia Doing Business 2018 Russian Federation Details – Getting Electricity in Saint Petersburg – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Submit application to Lenenergo and await contracts for technological 10 calendar days RUB 322,724 connection and electricity supply Agency : Lenenergo The application is submitted electronically through the “Personal cabinet” internet portal on technological connection on the Lenenergo website https://lkk.lenenergo.ru/SiteAssets/tags.aspx without visiting the client services o ce, along with doing a preliminary calculation of the connection cost online. The application should be supported by the documents required by the utility, including internal wiring and equipment location plan, justi cation of the requested capacity, copy of the license of the rm which prepared the plan, documents certifying the legal status of the customer. Within 7 days after receiving the connection application Lenenergo provides the customer with technical conditions for connection along with signed connection and supply contracts. All the documents are available online in the “Personal cabinet”, where those can be signed electronically, if the customer has a digital signature. Alternatively those can be sent to the customer via free courier service for signing. On every stage of the application processing, the applicant receives a text- message noti cation to the cellular phone indicated on the application form. It is also possible to track the status of the application by visiting the online “Personal cabinet”. Upon signing the connection contract the customer makes the payment of the connection cost. 2 Await completion of external works by Lenenergo 70 calendar days RUB 0 Agency : Lenenergo Upon having the connection contract signed by the customer, the utility prepares project design for building a network for connection and obtain all approvals for construction work (such as, a permit required for the laying of underground or overhead lines), and carry out all the external works according to the contract and the technical conditions. Before energizing, utility checks the readiness of the internal network and equipment of the customer to receive electric energy. If there are no any issues on the customer side, the utility energizes the object and provided the customer with the nal set of documents, including the technological connection act, the balance inventory act and attachments to the supply contract. Utility performs all work up to the land boundaries of the applicant and assumes the responsibility of the performed work, and the customer is responsible for the performance of work within the boundaries of their plot. The customer is responsible for having the internal network ready with all the necessary equipment installed, including the metering equipment. The customers have a right to design and build the internal network with their own resources, or can outsource that to a specialized electric company/utility under a separate contract. 3 Receive inspection, nal documents and connection 10 calendar days RUB 0 Agency : Lenenergo Utility conducts an inspection to check the compliance of the equipment Page 38   installed on the customer side (cabling up to the metering box, and the box own resources, or can outsource that to a specialized electric Doing company/utility Business 2018 under a separate Russian contract. Federation 3 Receive inspection, nal documents and connection 10 calendar days RUB 0 Agency : Lenenergo Utility conducts an inspection to check the compliance of the equipment installed on the customer side (cabling up to the metering box, and the box itself) in order to receive the connection according to the technical conditions outlined in the technological connection contract for both parties. Provides the connection documents to the customer, including the inspection certi cate, certi cate of ful llment of the obligations mentioned in the technical conditions, balance separation certi cate, certi cate of responsibilities of both sides. Takes place simultaneously with previous procedure. Details – Getting Electricity in Saint Petersburg – Measure of Quality Answer Reliability of supply and transparency of tari index (0-8) 8 Total duration and frequency of outages per customer a year (0-3) 3 System average interruption duration index (SAIDI) 0.0 System average interruption frequency index (SAIFI) 0.0 What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 5.0 Mechanisms for monitoring outages (0-1) 1 Does the distribution utility use automated tools to monitor outages? Yes Mechanisms for restoring service (0-1) 1 Does the distribution utility use automated tools to restore service? Yes Regulatory monitoring (0-1) 1 Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on Yes reliability of supply? Financial deterrents aimed at limiting outages (0-1) 1 Does the utility either pay compensation to customers or face nes by the regulator (or both) if outages Yes exceed a certain cap? Communication of tari s and tari changes (0-1) 1 Are e ective tari s available online? Yes Link to the website, if available online http://www.pesc.ru/f or_clients/disclosure _of_information/St_P etersburg/ http://www.pesc.ru/f or_clients/disclosure _of_information/len_ obl/ Page 39   Are customers noti ed of a change in tari ahead of the billing cycle? Yes Takes place simultaneously with previous procedure. Doing Business 2018 Russian Federation Details – Getting Electricity in Saint Petersburg – Measure of Quality Answer Reliability of supply and transparency of tari index (0-8) 8 Total duration and frequency of outages per customer a year (0-3) 3 System average interruption duration index (SAIDI) 0.0 System average interruption frequency index (SAIFI) 0.0 What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 5.0 Mechanisms for monitoring outages (0-1) 1 Does the distribution utility use automated tools to monitor outages? Yes Mechanisms for restoring service (0-1) 1 Does the distribution utility use automated tools to restore service? Yes Regulatory monitoring (0-1) 1 Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on Yes reliability of supply? Financial deterrents aimed at limiting outages (0-1) 1 Does the utility either pay compensation to customers or face nes by the regulator (or both) if outages Yes exceed a certain cap? Communication of tari s and tari changes (0-1) 1 Are e ective tari s available online? Yes Link to the website, if available online http://www.pesc.ru/f or_clients/disclosure _of_information/St_P etersburg/ http://www.pesc.ru/f or_clients/disclosure _of_information/len_ obl/ Are customers noti ed of a change in tari ahead of the billing cycle? Yes Note: If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tari index. If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index. If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index. Registering Property This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the Page 40   quality of the land administration system in each economy. The quality of land administration index has ve dimensions: reliability of If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index. Doing Business 2018 Russian Federation Registering Property This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality of land administration index has ve dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally transfer title on immovable To make the data comparable across economies, several assumptions property (number) about the parties to the transaction, the property and the procedures are used. Preregistration procedures (for example, checking for liens, notarizing sales agreement, The parties (buyer and seller): paying property transfer taxes) - Are limited liability companies (or the legal equivalent). Registration procedures in the economy's largest - Are located in the periurban area of the economy’s largest business city. business citya. For 11 economies the data are also collected for the second largest Postregistration procedures (for example, filling business city. title with municipality) - Are 100% domestically and privately owned. Time required to complete each procedure - Have 50 employees each, all of whom are nationals. (calendar days) - Perform general commercial activities. Does not include time spent gathering information The property (fully owned by the seller): - Has a value of 50 times income per capita, which equals the sale price. Each procedure starts on a separate day - though - Is fully owned by the seller. procedures that can be fully completed online - Has no mortgages attached and has been under the same ownership for are an exception to this rule the past 10 years. Procedure is considered completed once final - Is registered in the land registry or cadastre, or both, and is free of title document is received disputes. No prior contact with officials - Is located in a periurban commercial zone, and no rezoning is required. Cost required to complete each procedure (% of - Consists of land and a building. The land area is 557.4 square meters property value) (6,000 square feet). A two-story warehouse of 929 square meters (10,000 square feet) is located on the land. The warehouse is 10 years old, is in Official costs only (such as administrative fees, good condition, has no heating system and complies with all safety duties and taxes). standards, building codes and legal requirements. The property, Value Added Tax, Capital Gains Tax and illicit consisting of land and building, will be transferred in its entirety. payments are excluded - Will not be subject to renovations or additional construction following the Quality of land administration index (0-30) purchase. - Has no trees, natural water sources, natural reserves or historical Reliability of infrastructure index (0-8) monuments of any kind. Transparency of information index (0–6) - Will not be used for special purposes, and no special permits, such as for Geographic coverage index (0–8) residential use, industrial plants, waste storage or certain types of agricultural activities, are required. Land dispute resolution index (0–8) - Has no occupants, and no other party holds a legal interest in it. Equal access to property rights index (-2–0) Registering Property - Moscow Standard Property Transfer Property value RUB 28,539,762.40 Page 41   Doing Business 2018 Russian Federation Registering Property - Moscow Standard Property Transfer Property value RUB 28,539,762.40 City Covered Moscow Europe & OECD high Indicator Moscow Central Asia income Overall Best Performer Procedures (number) 4 5.3 4.6 1.00 (4 Economies) Time (days) 13 20.4 22.3 1.00 (3 Economies) Cost (% of property value) 0.2 2.5 4.2 0.00 (5 Economies) Quality of the land administration index (0-30) 26.0 19.8 22.7 29.00 (Singapore) Figure – Registering Property in Russia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 88.72: Moscow 76.15: China (Rank: 41) 60.81: Mexico (Rank: 99) 52.60: Brazil (Rank: 131) Note: The ranking of economies on the ease of registering property is determined by sorting their distance to frontier scores for registering property. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Registering Property in Moscow – Procedure, Time and Cost Time Cost 0.16 12 0.14 10 Cost (% of property value) 0.12 8 0.1 Time (days) 0.08 6 0.06 4 0.04 2 0.02 0 0 1 *2 *3 4 Procedures (number) Page 42   registering property. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Russian Federation Figure – Registering Property in Moscow – Procedure, Time and Cost Time Cost 0.16 12 0.14 10 Cost (% of property value) 0.12 8 0.1 Time (days) 0.08 6 0.06 4 0.04 2 0.02 0 0 1 *2 *3 4 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Registering Property in Moscow and comparator economies – Measure of Quality 30 26.0 25 19.8 20 18.3 Index score 16.3 15 13.8 10 5 0 Moscow Brazil China Mexico Europe & Central Asia Details – Registering Property in Moscow – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Buyer checks for encumbrances on property at the Federal Service for Less than a day RUB 2200 (for a hard State Registration, Cadastre and Cartography (electronic copy) and RUB 600 Agency : Federal Service of State Registration, Cadastre and Cartography document); (electronic (Rosreestr) 5 working days document); (hard copy) RUB 800 (for Even though not mandatory by law, in practice most buyers do check for (simultaneous with extraterritorial non-encumbrances on the property to prove the validity of the seller's title. procedure 2) request of hard copy The complete information on the property (ownership rights, document (in encumbrances) can be obtained by the Buyer in two ways with equal legal power of each. In a form of the o cial document provided by the authorized another region)); agency (Rosreestr) and in electronic format. RUB 640 (for extraterritorial Page 43   According to the Federal Law №122 the registration authority upon the request of electronic Moscow Brazil China Mexico Europe & Central Asia Doing Business 2018 Russian Federation Details – Registering Property in Moscow – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Buyer checks for encumbrances on property at the Federal Service for Less than a day RUB 2200 (for a hard State Registration, Cadastre and Cartography (electronic copy) and RUB 600 Agency : Federal Service of State Registration, Cadastre and Cartography document); (electronic (Rosreestr) 5 working days document); (hard copy) RUB 800 (for Even though not mandatory by law, in practice most buyers do check for (simultaneous with extraterritorial non-encumbrances on the property to prove the validity of the seller's title. procedure 2) request of hard copy The complete information on the property (ownership rights, document (in encumbrances) can be obtained by the Buyer in two ways with equal legal power of each. In a form of the o cial document provided by the authorized another region)); agency (Rosreestr) and in electronic format. RUB 640 (for extraterritorial According to the Federal Law №122 the registration authority upon the request of electronic o cial request for information on a property shall provide an o cial hard document ). copy document with all information available in the Uni ed State Register of Real Estate Property within ve (5 working) days. Alternatively, checking and veri cation ownership rights of the seller can be performed on-line on the main web page of the Federal Service for State Registration, Cadastre and Cartography (www.rosreestr.ru). The Buyer can also obtain a paper copy of the extract from Real Estate Property Register by making an application as individual (not the legal entity) with the cost being RUB 200. There is also an option to access the information resource of Rosreestr: any individual or legal entity may obtain an electronic extract from the Property Register and verify ownership title to any real estate facility and existence of encumbrances, if any. The procedure includes the following steps: 1) obtaining an electronic access key (free of charge); 2) re lling one's account with the help of a credit card for a minimum sum of RUB 150; 3) receiving the electronic extract from the Property Register within a day with the charge being RUB 1 for one query. 2 Seller obtains a “reconciliation report” from the local utility 1 day 0 Agency : Local Utility Company At the request of the buyer, the seller obtains a “reconciliation report” from the local utility, showing that no outstanding debts are owed to the utility company. Usually, the seller’s accountant can obtain this report within a day by requesting it directly from the local utility. Although not a legal requirement, the reconciliation report is commonly obtained in transactions involving commercial real estate, so the buyer can rest assured that the property is free from any possible creditors and to avoid problems with future utility hook up. 3 Check for legal status and current conditions of the buyer at the Uni ed Less than a day Electronic document State Register of Legal Entities (online procedure); - no charge. Agency : Uni ed State Register of Legal Entities (O cially managed and Regular procedure - maintained by the Federal Tax Service (FNS)) 5 working days, and Official documents in Expedited hard copy - RUB 200 Legal entities will obtain extracts from the Uni ed State Register of Legal procedure - 1 (regular procedure - Entities, o cially managed and maintained by the Federal Tax Service (FNS) Page 44   working day 5 working days) or (http://egrul.nalog.ru/#). Although Russian legislation does not establish the property is free from any possible creditors and to avoid problems with Doing future hook up. utility2018 Business Russian Federation 3 Check for legal status and current conditions of the buyer at the Uni ed Less than a day Electronic document State Register of Legal Entities (online procedure); - no charge. Agency : Uni ed State Register of Legal Entities (O cially managed and Regular procedure - maintained by the Federal Tax Service (FNS)) 5 working days, and Official documents in Expedited hard copy - RUB 200 Legal entities will obtain extracts from the Uni ed State Register of Legal procedure - 1 (regular procedure - Entities, o cially managed and maintained by the Federal Tax Service (FNS) working day 5 working days) or (http://egrul.nalog.ru/#). Although Russian legislation does not establish the term of validity for the extracts, in practice most state authorities accept the (simultaneous with RUB 400 (expedited extracts issued not earlier than 30 days before their submission to the procedures 1) procedure - 1 respective state authority. working day) Since 2015 the o cial information on the legal status of a legal entity became available in a form of the o cial electronic extract with encrypted digital signature of FNS on its o cial website: https://service.nalog.ru/vyp/. The statutory term for obtaining the o cial electronic extract is the same as for the o cial hard copy extract (not more than 5 days). 4 Apply for state registration of title transfer in the Uni ed State Register 9 working days at RUB 44,000: RUB of Rights to Real Estate the Multi-Functional 22,000 (building) + Agency : Multifunctional Center (MFC) Centers RUR 22,000 (land plot 7 working days at transfer) The most common way to apply for state registration of title transfer is Rosreestr completed within 9 business days. An application and relevant documents 7 working days are submitted at the Multifunctional Centers (MFCs), which provide services (online registration) on federal, regional and municipal levels, using a "One-Stop-Shop" principle and are widely spread across all regions of the country. MFC accepts the application and documents, sends them to Rosreestr internally, and receives them back (all electronically). It is also possible to apply for state registration of title transfer directly at the Roseester, which is completed within 7 business days. However, the option is less popular since Roseester centers are more scarce. Additionally, since 2013 the application together with all relevant documents can also be submitted in an electronic format, using the following link: https://rosreestr.ru/wps/portal/p/cc_present/reg_rights#/ However, the online application for the registration of the property transfer is subject to the special requirements set forth by the Order No. 723 of the Ministry of Economic Development and Trade dated 29 November 2013. For example, all documents submitted online be signed by the encrypted digital signature of a relevant person. In practice, submission of documents in electronic format is not frequently done, since there are only a few legal entities/individuals who have the encrypted digital signature software necessary for the transaction. Takes place simultaneously with previous procedure. Details – Registering Property in Moscow – Measure of Quality Answer Score Quality of the land administration index (0-30) 26.0 Reliability of infrastructure index (0-8) 8.0 What is the institution in charge of immovable property registration? Directorate General of the Page 45   Takes place simultaneously with previous procedure. Doing Business 2018 Russian Federation Details – Registering Property in Moscow – Measure of Quality Answer Score Quality of the land administration index (0-30) 26.0 Reliability of infrastructure index (0-8) 8.0 What is the institution in charge of immovable property registration? Directorate General of the Federal Service of State Registration, Cadastre and Cartography in Moscow (Directorate General of Rosreestr in Moscow) In what format are the majority of title or deed records kept in the largest business city Computer/Fully 2.0 —in a paper format or in a computerized format (scanned or fully digital)? digital Is there an electronic database for checking for encumbrances (liens, mortgages, Yes 1.0 restrictions and the like)? Institution in charge of the plans showing legal boundaries in the largest business city: Federal State Budgetary Enterprise Federal Cadastral Chamber of Rosreestr In what format are the majority of maps of land plots kept in the largest business city— Computer/Fully 2.0 in a paper format or in a computerized format (scanned or fully digital)? digital Is there an electronic database for recording boundaries, checking plans and providing Yes 1.0 cadastral information (geographic information system)? Is the information recorded by the immovable property registration agency and the Single database 1.0 cadastral or mapping agency kept in a single database, in di erent but linked databases or in separate databases? Do the immovable property registration agency and cadastral or mapping agency use Yes 1.0 the same identi cation number for properties? Transparency of information index (0–6) 6.0 Who is able to obtain information on land ownership at the agency in charge of Freely accessible 1.0 immovable property registration in the largest business city? by anyone Is the list of documents that are required to complete any type of property transaction Yes, online 0.5 made publicly available–and if so, how? Link for online access: https://rosreestr. ru/site/ z/zaregis trirovat- Page 46   nedvizhimoe- Is the list of documents that are required to complete any type of property transaction Yes, online 0.5 made Doing publicly available–and Business 2018 Russianif so, how? Federation Link for online access: https://rosreestr. ru/site/ z/zaregis trirovat- nedvizhimoe- imushchestvo- /predstavlenie- dokumentov-na- gosudarstvennu yu-registraciyu- prav/ Is the applicable fee schedule for any property transaction at the agency in charge of Yes, online 0.5 immovable property registration in the largest business city made publicly available– and if so, how? Link for online access: https://rosreestr. ru/site/ur/zaregi strirovat- nedvizhimoe- imushchestvo-/? price Does the agency in charge of immovable property registration commit to delivering a Yes, online 0.5 legally binding document that proves property ownership within a speci c time frame– and if so, how does it communicate the service standard? Link for online access: https://rosreestr. ru/site/ z/zaregis trirovat- nedvizhimoe- imushchestvo-/ Is there a speci c and separate mechanism for ling complaints about a problem that Yes 1.0 occurred at the agency in charge of immovable property registration? Contact information: https://rosreestr. ru/wps/portal/p/ cc_ib_support/cc _ib_complaint Are there publicly available o cial statistics tracking the number of transactions at the Yes 0.5 immovable property registration agency? Number of property transfers in the largest business city in 2015: 24996722.0 Who is able to consult maps of land plots in the largest business city? Freely accessible 0.5 by anyone Is the applicable fee schedule for accessing maps of land plots made publicly available Yes, online 0.5 —and if so, how? Link for online access: https://rosreestr. ru/site/ur/poluch it-svedeniya-iz- egrn/ Does the cadastral or mapping agency commit to delivering an updated map within a Yes, online 0.5 speci c time frame—and if so, how does it communicate the service standard? Page 47   Link for online access: https://rosreestr. it-svedeniya-iz- Doing Business 2018 Russian Federation egrn/ Does the cadastral or mapping agency commit to delivering an updated map within a Yes, online 0.5 speci c time frame—and if so, how does it communicate the service standard? Link for online access: https://rosreestr. ru/site/ur/poluch it-svedeniya-iz- egrn/ Is there a speci c and separate mechanism for ling complaints about a problem that Yes 0.5 occurred at the cadastral or mapping agency? Contact information: https://rosreestr. ru/wps/portal/p/ cc_ib_support/cc _ib_complaint Geographic coverage index (0–8) 4.0 Are all privately held land plots in the economy formally registered at the immovable No 0.0 property registry? Are all privately held land plots in the largest business city formally registered at the Yes 2.0 immovable property registry? Are all privately held land plots in the economy mapped? No 0.0 Are all privately held land plots in the largest business city mapped? Yes 2.0 Land dispute resolution index (0–8) 8.0 Does the law require that all property sale transactions be registered at the immovable Yes 1.5 property registry to make them opposable to third parties? Is the system of immovable property registration subject to a state or private Yes 0.5 guarantee? Is there a speci c compensation mechanism to cover for losses incurred by parties who Yes 0.5 engaged in good faith in a property transaction based on erroneous information certi ed by the immovable property registry? Does the legal system require a control of legality of the documents necessary for a Yes 0.5 property transaction (e.g., checking the compliance of contracts with requirements of the law)? If yes, who is responsible for checking the legality of the documents? Registrar. Does the legal system require veri cation of the identity of the parties to a property Yes 0.5 transaction? If yes, who is responsible for verifying the identity of the parties? Registrar. Is there a national database to verify the accuracy of identity documents? Yes 1.0 For a standard land dispute between two local businesses over tenure rights of a Arbitration Court property worth 50 times gross national income (GNI) per capita and located in the of the Moscow largest business city, what court would be in charge of the case in the rst instance? city How long does it take on average to obtain a decision from the rst-instance court for Less than a year 3.0 such a case (without appeal)? Page 48   Are there any statistics on the number of land disputes in the rst instance? Yes 0.5 property worth 50 times gross national income (GNI) per capita and located in the of the Moscow largest Doing city, what business 2018 Business court would Russian be in charge of the case in the rst instance? Federation city How long does it take on average to obtain a decision from the rst-instance court for Less than a year 3.0 such a case (without appeal)? Are there any statistics on the number of land disputes in the rst instance? Yes 0.5 Number of land disputes in the largest business city in 2015: For entire country - 51,802 land disputes in 2016 Equal access to property rights index (-2–0) 0.0 Do unmarried men and unmarried women have equal ownership rights to property? Yes 0.0 Do married men and married women have equal ownership rights to property? Yes 0.0 Registering Property - Saint Petersburg Standard Property Transfer Property value RUB 28,539,762.40 City Covered Saint Petersburg Saint Europe & OECD high Indicator Petersburg Central Asia income Overall Best Performer Procedures (number) 4 5.3 4.6 1.00 (4 Economies) Time (days) 13 20.4 22.3 1.00 (3 Economies) Cost (% of property value) 0.2 2.5 4.2 0.00 (5 Economies) Quality of the land administration index (0-30) 26.0 19.8 22.7 29.00 (Singapore) Figure – Registering Property in Russia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 88.72: Saint Petersburg 76.15: China (Rank: 41) 60.81: Mexico (Rank: 99) 52.60: Brazil (Rank: 131) Note: The ranking of economies on the ease of registering property is determined by sorting their distance to frontier scores for registering property. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Registering Property in Saint Petersburg – Procedure, Time and Cost Page 49   Do married men and married women have equal ownership rights to property? Yes 0.0 Doing Business 2018 Russian Federation Registering Property - Saint Petersburg Standard Property Transfer Property value RUB 28,539,762.40 City Covered Saint Petersburg Saint Europe & OECD high Indicator Petersburg Central Asia income Overall Best Performer Procedures (number) 4 5.3 4.6 1.00 (4 Economies) Time (days) 13 20.4 22.3 1.00 (3 Economies) Cost (% of property value) 0.2 2.5 4.2 0.00 (5 Economies) Quality of the land administration index (0-30) 26.0 19.8 22.7 29.00 (Singapore) Figure – Registering Property in Russia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 88.72: Saint Petersburg 76.15: China (Rank: 41) 60.81: Mexico (Rank: 99) 52.60: Brazil (Rank: 131) Note: The ranking of economies on the ease of registering property is determined by sorting their distance to frontier scores for registering property. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Registering Property in Saint Petersburg – Procedure, Time and Cost Time Cost 0.16 12 0.14 10 Cost (% of property value) 0.12 8 0.1 Time (days) 0.08 6 0.06 4 0.04 2 0.02 0 0 Page 50   1 *2 *3 4 registering property. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Russian Federation Figure – Registering Property in Saint Petersburg – Procedure, Time and Cost Time Cost 0.16 12 0.14 10 Cost (% of property value) 0.12 8 0.1 Time (days) 0.08 6 0.06 4 0.04 2 0.02 0 0 1 *2 *3 4 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Registering Property in Saint Petersburg and comparator economies – Measure of Quality 30 26.0 25 19.8 20 18.3 Index score 16.3 15 13.8 10 5 0 Saint Petersburg Brazil China Mexico Europe & Central Asia Details – Registering Property in Saint Petersburg – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Buyer checks for encumbrances on property at the Federal Service for Less than a day RUB 2200 (for a hard State Registration, Cadastre and Cartography (electronic copy) and RUB 600 Agency : Federal Service of State Registration, Cadastre and Cartography document); (electronic (Rosreestr) 5 working days document); (hard copy) RUB 800 (for Even though not mandatory by law, in practice most buyers do check for (simultaneous with extraterritorial non-encumbrances on the property to prove the validity of the seller's title. procedure 2) request of hard copy The complete information on the property (ownership rights, document (in encumbrances) can be obtained by the Buyer in two ways with equal legal power of each. In a form of the o cial document provided by the authorized another region)); agency (Rosreestr) and in electronic format. RUB 640 (for extraterritorial Page 51   According to the Federal Law №122 the registration authority upon the request of electronic Saint Petersburg Brazil China Mexico Europe & Central Asia Doing Business 2018 Russian Federation Details – Registering Property in Saint Petersburg – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Buyer checks for encumbrances on property at the Federal Service for Less than a day RUB 2200 (for a hard State Registration, Cadastre and Cartography (electronic copy) and RUB 600 Agency : Federal Service of State Registration, Cadastre and Cartography document); (electronic (Rosreestr) 5 working days document); (hard copy) RUB 800 (for Even though not mandatory by law, in practice most buyers do check for (simultaneous with extraterritorial non-encumbrances on the property to prove the validity of the seller's title. procedure 2) request of hard copy The complete information on the property (ownership rights, document (in encumbrances) can be obtained by the Buyer in two ways with equal legal power of each. In a form of the o cial document provided by the authorized another region)); agency (Rosreestr) and in electronic format. RUB 640 (for extraterritorial According to the Federal Law №122 the registration authority upon the request of electronic o cial request for information on a property shall provide an o cial hard document ). copy document with all information available in the Uni ed State Register of Real Estate Property within ve (5 working) days. Alternatively, checking and veri cation ownership rights of the seller can be performed on-line on the main web page of the Federal Service for State Registration, Cadastre and Cartography (www.rosreestr.ru). The Buyer can also obtain a paper copy of the extract from Real Estate Property Register by making an application as individual (not the legal entity) with the cost being RUB 200. There is also an option to access the information resource of Rosreestr: any individual or legal entity may obtain an electronic extract from the Property Register and verify ownership title to any real estate facility and existence of encumbrances, if any. The procedure includes the following steps: 1) obtaining an electronic access key (free of charge); 2) re lling one's account with the help of a credit card for a minimum sum of RUB 150; 3) receiving the electronic extract from the Property Register within a day with the charge being RUB 1 for one query. 2 Seller obtains a “reconciliation report” from the local utility 1 day Agency : Local Utility Company At the request of the buyer, the seller obtains a “reconciliation report” from the local utility, showing that no outstanding debts are owed to the utility company. Usually, the seller’s accountant can obtain this report within a day by requesting it directly from the local utility. Although not a legal requirement, the reconciliation report is commonly obtained in transactions involving commercial real estate, so the buyer can rest assured that the property is free from any possible creditors and to avoid problems with future utility hook up. 3 Check for legal status and current conditions of the buyer at the Uni ed Less than a day Electronic document State Register of Legal Entities (online procedure); - no charge. Agency : Uni ed State Register of Legal Entities (O cially managed and Regular procedure - maintained by the Federal Tax Service (FNS)) 5 working days, and Official documents in Expedited hard copy - RUB 200 Legal entities will obtain extracts from the Uni ed State Register of Legal procedure - 1 (regular procedure - Entities, o cially managed and maintained by the Federal Tax Service (FNS) Page 52   working day 5 working days) or (http://egrul.nalog.ru/#). Although Russian legislation does not establish the property is free from any possible creditors and to avoid problems with Doing future hook up. utility2018 Business Russian Federation 3 Check for legal status and current conditions of the buyer at the Uni ed Less than a day Electronic document State Register of Legal Entities (online procedure); - no charge. Agency : Uni ed State Register of Legal Entities (O cially managed and Regular procedure - maintained by the Federal Tax Service (FNS)) 5 working days, and Official documents in Expedited hard copy - RUB 200 Legal entities will obtain extracts from the Uni ed State Register of Legal procedure - 1 (regular procedure - Entities, o cially managed and maintained by the Federal Tax Service (FNS) working day 5 working days) or (http://egrul.nalog.ru/#). Although Russian legislation does not establish the (simultaneous with RUB 400 (expedited term of validity for the extracts, in practice most state authorities accept the extracts issued not earlier than 30 days before their submission to the procedures 1) procedure - 1 respective state authority. working day) Since 2015 the o cial information on the legal status of a legal entity became available in a form of the o cial electronic extract with encrypted digital signature of FNS on its o cial website: https://service.nalog.ru/vyp/. The statutory term for obtaining the o cial electronic extract is the same as for the o cial hard copy extract (not more than 5 days). 4 Apply for state registration of title transfer in the Uni ed State Register 9 working days at RUB 44,000: RUB of Rights to Real Estate the Multi-Functional 22,000 (building) + Agency : Multifunctional Center (MFC) Centers RUR 22,000 (land plot 7 working days at transfer) The most common way to apply for state registration of title transfer is Rosreestr completed within 9 business days. An application and relevant documents 7 working days are submitted at the Multifunctional Centers (MFCs), which provide services (online registration) on federal, regional and municipal levels, using a "One-Stop-Shop" principle and are widely spread across all regions of the country. MFC accepts the application and documents, sends them to Rosreestr internally, and receives them back (all electronically). It is also possible to apply for state registration of title transfer directly at the Roseester, which is completed within 7 business days. However, the option is less popular since Roseester centers are more scarce. Additionally, since 2013 the application together with all relevant documents can also be submitted in an electronic format, using the following link: https://rosreestr.ru/wps/portal/p/cc_present/reg_rights#/ However, the online application for the registration of the property transfer is subject to the special requirements set forth by the Order No. 723 of the Ministry of Economic Development and Trade dated 29 November 2013. For example, all documents submitted online be signed by the encrypted digital signature of a relevant person. In practice, submission of documents in electronic format is not frequently done, since there are only a few legal entities/individuals who have the encrypted digital signature software necessary for the transaction. Takes place simultaneously with previous procedure. Details – Registering Property in Saint Petersburg – Measure of Quality Answer Score Quality of the land administration index (0-30) 26.0 Reliability of infrastructure index (0-8) 8.0 What is the institution in charge of immovable property registration? Department of Federal Service Page 53   Takes place simultaneously with previous procedure. Doing Business 2018 Russian Federation Details – Registering Property in Saint Petersburg – Measure of Quality Answer Score Quality of the land administration index (0-30) 26.0 Reliability of infrastructure index (0-8) 8.0 What is the institution in charge of immovable property registration? Department of Federal Service of Registration, Cadastre and Cartography in St. Petersburg In what format are the majority of title or deed records kept in the largest business city Computer/Fully 2.0 —in a paper format or in a computerized format (scanned or fully digital)? digital Is there an electronic database for checking for encumbrances (liens, mortgages, Yes 1.0 restrictions and the like)? Institution in charge of the plans showing legal boundaries in the largest business city: Department of Federal Service of State Registration, Cadastre and Cartography in St. Petersburg In what format are the majority of maps of land plots kept in the largest business city— Computer/Fully 2.0 in a paper format or in a computerized format (scanned or fully digital)? digital Is there an electronic database for recording boundaries, checking plans and providing Yes 1.0 cadastral information (geographic information system)? Is the information recorded by the immovable property registration agency and the Single database 1.0 cadastral or mapping agency kept in a single database, in di erent but linked databases or in separate databases? Do the immovable property registration agency and cadastral or mapping agency use Yes 1.0 the same identi cation number for properties? Transparency of information index (0–6) 6.0 Who is able to obtain information on land ownership at the agency in charge of Freely accessible 1.0 immovable property registration in the largest business city? by anyone Is the list of documents that are required to complete any type of property transaction Yes, online 0.5 made publicly available–and if so, how? Link for online access: https://rosreestr. ru/site/ z/zaregis trirovat- nedvizhimoe- imushchestvo- /predstavlenie- dokumentov-na- gosudarstvennu yu-registraciyu- Page 54   prav/ Is the list of documents that are required to complete any type of property transaction Yes, online 0.5 made Doing publicly available–and Business 2018 Russianif so, how? Federation Link for online access: https://rosreestr. ru/site/ z/zaregis trirovat- nedvizhimoe- imushchestvo- /predstavlenie- dokumentov-na- gosudarstvennu yu-registraciyu- prav/ Is the applicable fee schedule for any property transaction at the agency in charge of Yes, online 0.5 immovable property registration in the largest business city made publicly available– and if so, how? Link for online access: https://rosreestr. ru/site/ z/zaregis trirovat- nedvizhimoe- imushchestvo-/? price Does the agency in charge of immovable property registration commit to delivering a Yes, online 0.5 legally binding document that proves property ownership within a speci c time frame– and if so, how does it communicate the service standard? Link for online access: https://rosreestr. ru/site/ z/zaregis trirovat- nedvizhimoe- imushchestvo- /sroki- polucheniya- uslugi/?lang=ru Is there a speci c and separate mechanism for ling complaints about a problem that Yes 1.0 occurred at the agency in charge of immovable property registration? Contact information: https://rosreestr. ru/wps/portal/cc _ib_complaint Are there publicly available o cial statistics tracking the number of transactions at the Yes 0.5 immovable property registration agency? Number of property transfers in the largest business city in 2015: 580810.0 Who is able to consult maps of land plots in the largest business city? Freely accessible 0.5 by anyone Is the applicable fee schedule for accessing maps of land plots made publicly available Yes, online 0.5 —and if so, how? Link for online access: https://rosreestr. ru/site/press/ne ws/ustanovleny- razmery-platy-za- predostavlenie- svedeniy-iz- Page 55   edinogo- Is the applicable fee schedule for accessing maps of land plots made publicly available Yes, online 0.5 —and Doing if so, how? Business 2018 Russian Federation Link for online access: https://rosreestr. ru/site/press/ne ws/ustanovleny- razmery-platy-za- predostavlenie- svedeniy-iz- edinogo- gosudarstvenno go-reestra- nedvizhimos/? sphrase_id=5204 232 Does the cadastral or mapping agency commit to delivering an updated map within a Yes, online 0.5 speci c time frame—and if so, how does it communicate the service standard? Link for online access: https://rosreestr. ru/site/press/ne ws/rosreestr- zapustil-servis- po- predostavleniyu- vypisok-iz- edinogo- gosudarstvenno go-reestra- nedvizhimos/? sphrase_id=5204 197 Is there a speci c and separate mechanism for ling complaints about a problem that Yes 0.5 occurred at the cadastral or mapping agency? Contact information: https://rosreestr. ru/wps/portal/cc _ib_complaint Geographic coverage index (0–8) 4.0 Are all privately held land plots in the economy formally registered at the immovable No 0.0 property registry? Are all privately held land plots in the largest business city formally registered at the Yes 2.0 immovable property registry? Are all privately held land plots in the economy mapped? No 0.0 Are all privately held land plots in the largest business city mapped? Yes 2.0 Land dispute resolution index (0–8) 8.0 Does the law require that all property sale transactions be registered at the immovable Yes 1.5 property registry to make them opposable to third parties? Is the system of immovable property registration subject to a state or private Yes 0.5 guarantee? Is there a speci c compensation mechanism to cover for losses incurred by parties who Yes 0.5 engaged in good faith in a property transaction based on erroneous information Page 56   certi ed by the immovable property registry? Is the system of immovable property registration subject to a state or private Yes 0.5 guarantee? Doing Business 2018 Russian Federation Is there a speci c compensation mechanism to cover for losses incurred by parties who Yes 0.5 engaged in good faith in a property transaction based on erroneous information certi ed by the immovable property registry? Does the legal system require a control of legality of the documents necessary for a Yes 0.5 property transaction (e.g., checking the compliance of contracts with requirements of the law)? If yes, who is responsible for checking the legality of the documents? Registrar; Notary. Does the legal system require veri cation of the identity of the parties to a property Yes 0.5 transaction? If yes, who is responsible for verifying the identity of the parties? Registrar; Notary. Is there a national database to verify the accuracy of identity documents? Yes 1.0 For a standard land dispute between two local businesses over tenure rights of a State property worth 50 times gross national income (GNI) per capita and located in the Commercial largest business city, what court would be in charge of the case in the rst instance? ('Arbitrazhny") Court for St. Petersburg and Leningrad Region) How long does it take on average to obtain a decision from the rst-instance court for Less than a year 3.0 such a case (without appeal)? Are there any statistics on the number of land disputes in the rst instance? Yes 0.5 Number of land disputes in the largest business city in 2015: For entire country - 51,802 land disputes in 2016 Equal access to property rights index (-2–0) 0.0 Do unmarried men and unmarried women have equal ownership rights to property? Yes 0.0 Do married men and married women have equal ownership rights to property? Yes 0.0 Getting Credit This topic explores two sets of issues—the strength of credit reporting systems and the e ectiveness of collateral and bankruptcy laws in facilitating lending. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Strength of legal rights index (0–12) Doing Business assesses the sharing of credit information and the legal rights of borrowers and lenders with respect to secured transactions Rights of borrowers and lenders through through 2 sets of indicators. The depth of credit information index collateral laws (0-10) measures rules and practices a ecting the coverage, scope and Protection of secured creditors’ rights through accessibility of credit information available through a credit registry or a bankruptcy laws (0-2) credit bureau. The strength of legal rights index measures the degree to Page 57   Depth of credit information index (0–8) which collateral and bankruptcy laws protect the rights of borrowers and Do married men and married women have equal ownership rights to property? Yes 0.0 Doing Business 2018 Russian Federation Getting Credit This topic explores two sets of issues—the strength of credit reporting systems and the e ectiveness of collateral and bankruptcy laws in facilitating lending. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Strength of legal rights index (0–12) Doing Business assesses the sharing of credit information and the legal rights of borrowers and lenders with respect to secured transactions Rights of borrowers and lenders through through 2 sets of indicators. The depth of credit information index collateral laws (0-10) measures rules and practices a ecting the coverage, scope and Protection of secured creditors’ rights through accessibility of credit information available through a credit registry or a bankruptcy laws (0-2) credit bureau. The strength of legal rights index measures the degree to Depth of credit information index (0–8) which collateral and bankruptcy laws protect the rights of borrowers and lenders and thus facilitate lending. For each economy it is first determined Scope and accessibility of credit information whether a unitary secured transactions system exists. Then two case distributed by credit bureaus and credit scenarios, case A and case B, are used to determine how a nonpossessory registries (0-8) security interest is created, publicized and enforced according to the law. Credit bureau coverage (% of adults) Special emphasis is given to how the collateral registry operates (if Number of individuals and firms listed in largest registration of security interests is possible). The case scenarios involve a credit bureau as a percentage of adult population secured borrower, company ABC, and a secured lender, BizBank. Credit registry coverage (% of adults) In some economies the legal framework for secured transactions will allow Number of individuals and firms listed in credit only case A or case B (not both) to apply. Both cases examine the same set registry as a percentage of adult population of legal provisions relating to the use of movable collateral. Several assumptions about the secured borrower (ABC) and lender (BizBank) are used: - ABC is a domestic limited liability company (or its legal equivalent). - ABC has up to 50 employees. - ABC has its headquarters and only base of operations in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city. - Both ABC and BizBank are 100% domestically owned. The case scenarios also involve assumptions. In case A, as collateral for the loan, ABC grants BizBank a nonpossessory security interest in one category of movable assets, for example, its machinery or its inventory. ABC wants to keep both possession and ownership of the collateral. In economies where the law does not allow nonpossessory security interests in movable property, ABC and BizBank use a fiduciary transfer-of-title arrangement (or a similar substitute for nonpossessory security interests). In case B, ABC grants BizBank a business charge, enterprise charge, floating charge or any charge that gives BizBank a security interest over ABC’s combined movable assets (or as much of ABC’s movable assets as possible). ABC keeps ownership and possession of the assets. Getting Credit - Moscow Europe & OECD high Indicator Moscow Central Asia income Overall Best Performer Strength of legal rights index (0-12) 8 6.6 6.0 12.00 (4 Economies) Page 58   possible). ABC keeps ownership and possession of the assets. Doing Business 2018 Russian Federation Getting Credit - Moscow Europe & OECD high Indicator Moscow Central Asia income Overall Best Performer Strength of legal rights index (0-12) 8 6.6 6.0 12.00 (4 Economies) Depth of credit information index (0-8) 7 6.3 6.6 8.00 (34 Economies) Credit registry coverage (% of adults) 0.0 22.2 18.3 100.00 (3 Economies) Credit bureau coverage (% of adults) 81.8 42.8 63.7 100.00 (23 Economies) Figure – Getting Credit in Russia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 90.00: Mexico (Rank: 6) 75.00: Moscow 60.00: China (Rank: 68) 45.00: Brazil (Rank: 105) Note: The ranking of economies on the ease of getting credit is determined by sorting their distance to frontier scores for getting credit. These scores are the distance to frontier score for the sum of the strength of legal rights index and the depth of credit information index. Figure – Legal Rights in Moscow and comparator economies 12 10 10 8 8 Index score 6.6 6 4 4 2 2 0 Moscow Brazil China Mexico Europe & Central Asia Details – Legal Rights in Moscow Strength of legal rights index (0-12) 8 Does an integrated or uni ed legal framework for secured transactions that extends to the creation, publicity and No enforcement of functional equivalents to security interests in movable assets exist in the economy? Page 59   Moscow Brazil China Mexico Europe & Central Asia Doing Business 2018 Russian Federation Details – Legal Rights in Moscow Strength of legal rights index (0-12) 8 Does an integrated or uni ed legal framework for secured transactions that extends to the creation, publicity and No enforcement of functional equivalents to security interests in movable assets exist in the economy? Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without No requiring a speci c description of collateral? Does the law allow businesses to grant a non possessory security right in substantially all of its assets, without requiring Yes a speci c description of collateral? May a security right extend to future or after-acquired assets, and does it extend automatically to the products, proceeds Yes or replacements of the original assets? Is a general description of debts and obligations permitted in collateral agreements; can all types of debts and Yes obligations be secured between parties; and can the collateral agreement include a maximum amount for which the assets are encumbered? Is a collateral registry in operation for both incorporated and non-incorporated entities, that is uni ed geographically Yes and by asset type, with an electronic database indexed by debtor's name? Does a notice-based collateral registry exist in which all functional equivalents can be registered? No Does a modern collateral registry exist in which registrations, amendments, cancellations and searches can be Yes performed online by any interested third party? Are secured creditors paid rst (i.e. before tax claims and employee claims) when a debtor defaults outside an insolvency Yes procedure? Are secured creditors paid rst (i.e. before tax claims and employee claims) when a business is liquidated? Yes Are secured creditors subject to an automatic stay on enforcement when a debtor enters a court-supervised No reorganization procedure? Does the law protect secured creditors’ rights by providing clear grounds for relief from the stay and/or sets a time limit for it? Does the law allow parties to agree on out of court enforcement at the time a security interest is created? Does the law Yes allow the secured creditor to sell the collateral through public auction or private tender, as well as, for the secured creditor to keep the asset in satisfaction of the debt? Figure – Credit Information in Moscow and comparator economies 10 8 8 8 7 7 6.3 Index score 6 4 2 0 Moscow Brazil China Mexico Europe & Central Asia Details – Credit Information in Moscow Page 60   0 Moscow Doing Business 2018 Brazil Russian Federation China Mexico Europe & Central Asia Details – Credit Information in Moscow Credit Credit Depth of credit information index (0-8) bureau registry Score Are data on both firms and individuals distributed? Yes No 1 Are both positive and negative credit data distributed? Yes No 1 Are data from retailers or utility companies - in addition to data from banks and financial institutions - No No 0 distributed? Are at least 2 years of historical data distributed? (Credit bureaus and registries that distribute more Yes No 1 than 10 years of negative data or erase data on defaults as soon as they are repaid obtain a score of 0 for this component.) Are data on loan amounts below 1% of income per capita distributed? Yes No 1 By law, do borrowers have the right to access their data in the credit bureau or credit registry? Yes No 1 Can banks and financial institutions access borrowers’ credit information online (for example, Yes No 1 through an online platform, a system-to-system connection or both)? Are bureau or registry credit scores offered as a value-added service to help banks and financial Yes No 1 institutions assess the creditworthiness of borrowers? Score ("yes" to either public bureau or private registry) 7 Note: An economy receives a score of 1 if there is a "yes" to either bureau or registry. If the credit bureau or registry is not operational or covers less than 5% of the adult population, the total score on the depth of credit information index is 0. Coverage Credit bureau Credit registry Number of individuals 80,000,000 0 Number of firms 1,700,000 0 Total 81,700,000 0 Percentage of adult population 81.8 0.0 Getting Credit - Saint Petersburg Page 61   Percentage of adult population 81.8 0.0 Doing Business 2018 Russian Federation Getting Credit - Saint Petersburg Saint Europe & OECD high Indicator Petersburg Central Asia income Overall Best Performer Strength of legal rights index (0-12) 8 6.6 6.0 12.00 (4 Economies) Depth of credit information index (0-8) 7 6.3 6.6 8.00 (34 Economies) Credit registry coverage (% of adults) 0.0 22.2 18.3 100.00 (3 Economies) Credit bureau coverage (% of adults) 81.8 42.8 63.7 100.00 (23 Economies) Figure – Getting Credit in Russia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 90.00: Mexico (Rank: 6) 75.00: Saint Petersburg 60.00: China (Rank: 68) 45.00: Brazil (Rank: 105) Note: The ranking of economies on the ease of getting credit is determined by sorting their distance to frontier scores for getting credit. These scores are the distance to frontier score for the sum of the strength of legal rights index and the depth of credit information index. Figure – Legal Rights in Saint Petersburg and comparator economies 12 10 10 8 8 Index score 6.6 6 4 4 2 2 0 Saint Petersburg Brazil China Mexico Europe & Central Asia Details – Legal Rights in Saint Petersburg Strength of legal rights index (0-12) 8 Does an integrated or uni ed legal framework for secured transactions that extends to the creation, publicity and No Page 62   enforcement of functional equivalents to security interests in movable assets exist in the economy? Saint Petersburg Brazil China Mexico Europe & Central Asia Doing Business 2018 Russian Federation Details – Legal Rights in Saint Petersburg Strength of legal rights index (0-12) 8 Does an integrated or uni ed legal framework for secured transactions that extends to the creation, publicity and No enforcement of functional equivalents to security interests in movable assets exist in the economy? Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without No requiring a speci c description of collateral? Does the law allow businesses to grant a non possessory security right in substantially all of its assets, without requiring Yes a speci c description of collateral? May a security right extend to future or after-acquired assets, and does it extend automatically to the products, proceeds Yes or replacements of the original assets? Is a general description of debts and obligations permitted in collateral agreements; can all types of debts and Yes obligations be secured between parties; and can the collateral agreement include a maximum amount for which the assets are encumbered? Is a collateral registry in operation for both incorporated and non-incorporated entities, that is uni ed geographically Yes and by asset type, with an electronic database indexed by debtor's name? Does a notice-based collateral registry exist in which all functional equivalents can be registered? No Does a modern collateral registry exist in which registrations, amendments, cancellations and searches can be Yes performed online by any interested third party? Are secured creditors paid rst (i.e. before tax claims and employee claims) when a debtor defaults outside an insolvency Yes procedure? Are secured creditors paid rst (i.e. before tax claims and employee claims) when a business is liquidated? Yes Are secured creditors subject to an automatic stay on enforcement when a debtor enters a court-supervised No reorganization procedure? Does the law protect secured creditors’ rights by providing clear grounds for relief from the stay and/or sets a time limit for it? Does the law allow parties to agree on out of court enforcement at the time a security interest is created? Does the law Yes allow the secured creditor to sell the collateral through public auction or private tender, as well as, for the secured creditor to keep the asset in satisfaction of the debt? Figure – Credit Information in Saint Petersburg and comparator economies 10 8 8 8 7 7 6.3 Index score 6 4 2 0 Saint Petersburg Brazil China Mexico Europe & Central Asia Details – Credit Information in Saint Petersburg Page 63   0 Saint Petersburg Doing Business Brazil 2018 Russian Federation China Mexico Europe & Central Asia Details – Credit Information in Saint Petersburg Credit Credit Depth of credit information index (0-8) bureau registry Score Are data on both firms and individuals distributed? Yes No 1 Are both positive and negative credit data distributed? Yes No 1 Are data from retailers or utility companies - in addition to data from banks and financial institutions - No No 0 distributed? Are at least 2 years of historical data distributed? (Credit bureaus and registries that distribute more Yes No 1 than 10 years of negative data or erase data on defaults as soon as they are repaid obtain a score of 0 for this component.) Are data on loan amounts below 1% of income per capita distributed? Yes No 1 By law, do borrowers have the right to access their data in the credit bureau or credit registry? Yes No 1 Can banks and financial institutions access borrowers’ credit information online (for example, Yes No 1 through an online platform, a system-to-system connection or both)? Are bureau or registry credit scores offered as a value-added service to help banks and financial Yes No 1 institutions assess the creditworthiness of borrowers? Score ("yes" to either public bureau or private registry) 7 Note: An economy receives a score of 1 if there is a "yes" to either bureau or registry. If the credit bureau or registry is not operational or covers less than 5% of the adult population, the total score on the depth of credit information index is 0. Coverage Credit bureau Credit registry Number of individuals 80,000,000 0 Number of firms 1,700,000 0 Total 81,700,000 0 Percentage of adult population 81.8 0.0 Protecting Minority Investors This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain as well as shareholder rights, governance safeguards and corporate transparency requirements that reduce the risk of abuse. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Extent of disclosure index (0–10): Review and To make the data comparable across economies, a case study uses several approval requirements for related-party assumptions about the business and the transaction. transactions; Disclosure requirements for related-party transactions The business (Buyer): Extent of director liability index (0–10): Ability of - Is a publicly traded corporation listed on the economy’s most important minority shareholders to sue and hold interested stock exchange. If the number of publicly traded companies listed on that directors liable for prejudicial related-party exchange is less than 10, or if there is no stock exchange in the economy, it is assumed that Buyer is a large private company with multiple Page 64   transactions; Available legal remedies (damages, Percentage of adult population 81.8 0.0 Doing Business 2018 Russian Federation Protecting Minority Investors This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain as well as shareholder rights, governance safeguards and corporate transparency requirements that reduce the risk of abuse. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Extent of disclosure index (0–10): Review and To make the data comparable across economies, a case study uses several approval requirements for related-party assumptions about the business and the transaction. transactions; Disclosure requirements for related-party transactions The business (Buyer): Extent of director liability index (0–10): Ability of - Is a publicly traded corporation listed on the economy’s most important minority shareholders to sue and hold interested stock exchange. If the number of publicly traded companies listed on that directors liable for prejudicial related-party exchange is less than 10, or if there is no stock exchange in the economy, it transactions; Available legal remedies (damages, is assumed that Buyer is a large private company with multiple disgorgement of profits, fines, imprisonment, shareholders. rescission of the transaction) - Has a board of directors and a chief executive o cer (CEO) who may legally act on behalf of Buyer where permitted, even if this is not speci cally Ease of shareholder suits index (0–10): Access to required by law. internal corporate documents; Evidence - Has a supervisory board (applicable to economies with a two-tier board obtainable during trial and allocation of legal system) on which 60% of the shareholder-elected members have been expenses appointed by Mr. James, who is Buyer’s controlling shareholder and a Extent of conflict of interest regulation index member of Buyer’s board of directors. (0–10): Simple average of the extent of disclosure, - Has not adopted any bylaws or articles of association that di er from extent of director liability and ease of default minimum standards and does not follow any nonmandatory codes, shareholder indices principles, recommendations or guidelines relating to corporate Extent of shareholder rights index (0-10): governance. Shareholders’ rights and role in major corporate - Is a manufacturing company with its own distribution network. decisions Extent of ownership and control index (0-10): The transaction involves the following details: Governance safeguards protecting shareholders - Mr. James owns 60% of Buyer and elected two directors to Buyer’s ve- from undue board control and entrenchment member board. Extent of corporate transparency index (0-10): - Mr. James also owns 90% of Seller, a company that operates a chain of Corporate transparency on ownership stakes, retail hardware stores. Seller recently closed a large number of its stores. compensation, audits and financial prospects - Mr. James proposes that Buyer purchase Seller’s unused eet of trucks to expand Buyer’s distribution of its food products, a proposal to which Buyer Extent of shareholder governance index (0–10): agrees. The price is equal to 10% of Buyer’s assets and is higher than the Simple average of the extent of shareholders market value. rights, extent of ownership and control and - The proposed transaction is part of the company’s ordinary course of extent of corporate transparency indices business and is not outside the authority of the company. Strength of minority investor protection index - Buyer enters into the transaction. All required approvals are obtained, (0–10): Simple average of the extent of conflict of and all required disclosures made (that is, the transaction is not interest regulation and extent of shareholder fraudulent). governance indices - The transaction causes damages to Buyer. Shareholders sue Mr. James and the other parties that approved the transaction. Protecting Minority Investors - Moscow Europe & OECD high Indicator Moscow Central Asia income Overall Best Performer Extent of conflict of interest regulation index (0- 5 6.3 6.4 9.3 (New Zealand) Page 65   10) and the other parties that approved the transaction. Doing Business 2018 Russian Federation Protecting Minority Investors - Moscow Europe & OECD high Indicator Moscow Central Asia income Overall Best Performer Extent of conflict of interest regulation index (0- 5 6.3 6.4 9.3 (New Zealand) 10) Extent of shareholder governance index (0-10) 7.3 6.6 6.4 9.00 (Kazakhstan) Figure – Protecting Minority Investors in Russia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 63.33: Brazil (Rank: 43) 61.67: Moscow 58.33: Mexico (Rank: 62) 48.33: China (Rank: 119) Note: The ranking of economies on the strength of minority investor protections is determined by sorting their distance to frontier scores for protecting minority investors. These scores are the simple average of the distance to frontier scores for the extent of con ict of interest regulation index and the extent of shareholder governance index. Figure – Protecting Minority Investors in Moscow and comparator economies – Measure of Quality Moscow 8 2 6 5 9 7 Brazil 8 8 5 6 7 4 China 9 1 10 2 3 4 Mexico 4 5 8 6 7 5 OECD high income 7.3 5.6 6.5 5.2 6.3 7.4 Europe & Central Asia 7.4 4.6 7 5.5 7.2 6.8 0 5 10 15 20 25 30 35 40 45 Sub-Indicator Score Extent of corporate transparency index (0­10) Extent of director liability index (0­10) Extent of disclosure index (0­10) Extent of ownership and control index (0­10) Extent of shareholder rights index (0­10) Ease of shareholder suits index (0­10) Details – Protecting Minority Investors in Moscow – Measure of Quality Page 66   Extent of ownership and control index (0­10) Extent of shareholder rights index (0­10) Ease of shareholder suits index (0­10) Doing Business 2018 Russian Federation Details – Protecting Minority Investors in Moscow – Measure of Quality Answer Score Extent of con ict of interest regulation index (0-10) 5 Extent of disclosure index (0-10) 6 Which corporate body is legally su cient to approve the Buyer-Seller transaction? (0-3) CEO alone 0.0 Must an external body review the terms of the transaction before it takes place? (0-1) No 0.0 Must Mr. James disclose his con ict of interest to the board of directors? (0-2) Full disclosure of 2.0 all material facts Must Buyer disclose the transaction in published periodic lings (annual reports)? (0-2) Disclosure on 2.0 the transaction and on the con ict of interest Must Buyer immediately disclose the transaction to the public and/or shareholders? (0- Disclosure on 2.0 2) the transaction and on the con ict of interest Extent of director liability index (0-10) 2 Can shareholders representing 10% of Buyer's share capital sue directly or derivatively Yes 1.0 for the damage the transaction caused to Buyer? (0-1) Can shareholders hold the interested director liable for the damage the transaction Not liable 0.0 caused to Buyer? (0-2) Can shareholders hold the other directors liable for the damage the transaction caused Liable if negligent 1.0 to Buyer (0-2) Must Mr. James pay damages for the harm caused to Buyer upon a successful claim by No 0.0 shareholders? (0-1) Must Mr. James repay pro ts made from the transaction upon a successful claim by No 0.0 shareholders? (0-1) Is Mr. James disquali ed or ned and imprisoned upon a successful claim by No 0.0 shareholders? (0-1) Can a court void the transaction upon a successful claim by shareholders? (0-2) Only in case of 0.0 fraud or bad faith Ease of shareholder suits index (0-10) 7 Before suing can shareholders representing 10% of Buyer's share capital inspect the No 0.0 transaction documents? (0-1) Can the plainti obtain any documents from the defendant and witnesses at trial? (0-3) Any relevant 3.0 document Can the plainti request categories of documents from the defendant without No 0.0 Page 67   Before suing can shareholders representing 10% of Buyer's share capital inspect the No 0.0 transaction Doing 2018 (0-1) documents? Business Russian Federation Can the plainti obtain any documents from the defendant and witnesses at trial? (0-3) Any relevant 3.0 document Can the plainti request categories of documents from the defendant without No 0.0 identifying speci c ones? (0-1) Can the plainti directly question the defendant and witnesses at trial? (0-2) Yes 2.0 Is the level of proof required for civil suits lower than that of criminal cases? (0-1) Yes 1.0 Can shareholder plainti s recover their legal expenses from the company? (0-2) Yes if successful 1.0 Extent of shareholder governance index (0-10) 7.3 Extent of shareholder rights index (0-10) 9 Does the sale of 51% of Buyer's assets require shareholder approval? Yes 1.0 Can shareholders representing 10% of Buyer's share capital call for a meeting of Yes 1.0 shareholders? Must Buyer obtain its shareholders’ approval every time it issues new shares? No 0.0 Do shareholders automatically receive preemption rights every time Buyer issues new Yes 1.0 shares? Must shareholders approve the election and dismissal of the external auditor? Yes 1.0 Are changes to the rights of a class of shares only possible if the holders of the a ected Yes 1.0 shares approve? Assuming that Buyer is a limited company, does the sale of 51% of its assets require Yes 1.0 member approval? Assuming that Buyer is a limited company, can members representing 10% call for a Yes 1.0 meeting of members? Assuming that Buyer is a limited company, must all members consent to add a new Yes 1.0 member? Assuming that Buyer is a limited company, must a member rst o er to sell their Yes 1.0 interest to the existing members before they can sell to non-members? Extent of ownership and control index (0-10) 5 Is it forbidden to appoint the same individual as CEO and chair of the board of Yes 1.0 directors? Must the board of directors include independent and nonexecutive board members? No 0.0 Can shareholders remove members of the board of directors without cause before the Yes 1.0 end of their term? Must the board of directors include a separate audit committee exclusively comprising No 0.0 board members? Must a potential acquirer make a tender o er to all shareholders upon acquiring 50% Yes 1.0 of Buyer? Must Buyer pay declared dividends within a maximum period set by law? Yes 1.0 Page 68   Must a potential acquirer make a tender o er to all shareholders upon acquiring 50% Yes 1.0 of Buyer? Doing Business 2018 Russian Federation Must Buyer pay declared dividends within a maximum period set by law? Yes 1.0 Is a subsidiary prohibited from acquiring shares issued by its parent company? No 0.0 Assuming that Buyer is a limited company, must Buyer have a mechanism to resolve No 0.0 disagreements among members? Assuming that Buyer is a limited company, must a potential acquirer make a tender No 0.0 o er to all shareholders upon acquiring 50% of Buyer? Assuming that Buyer is a limited company, must Buyer distribute pro ts within a Yes 1.0 maximum period set by law? Extent of corporate transparency index (0-10) 8 Must Buyer disclose direct and indirect bene cial ownership stakes representing 5%? Yes 1.0 Must Buyer disclose information about board members’ primary employment and Yes 1.0 directorships in other companies? Must Buyer disclose the compensation of individual managers? No 0.0 Must a detailed notice of general meeting be sent 21 days before the meeting? No 0.0 Can shareholders representing 5% of Buyer’s share capital put items on the general Yes 1.0 meeting agenda? Must Buyer's annual nancial statements be audited by an external auditor? Yes 1.0 Must Buyer disclose its audit reports to the public? Yes 1.0 Assuming that Buyer is a limited company, must members meet at least once a year? Yes 1.0 Assuming that Buyer is a limited company, can members representing 5% put items on Yes 1.0 the meeting agenda? Assuming that Buyer is a limited company, must Buyer's annual nancial statements be Yes 1.0 audited by an external auditor? Protecting Minority Investors - Saint Petersburg Saint Europe & OECD high Indicator Petersburg Central Asia income Overall Best Performer Extent of conflict of interest regulation index (0- 5 6.3 6.4 9.3 (New Zealand) 10) Extent of shareholder governance index (0-10) 7.3 6.6 6.4 9.00 (Kazakhstan) Figure – Protecting Minority Investors in Russia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 63.33: Brazil (Rank: 43) Page 69   61.67: Saint Petersburg Assuming that Buyer is a limited company, must Buyer's annual nancial statements be Yes 1.0 audited by an external auditor? Doing Business 2018 Russian Federation Protecting Minority Investors - Saint Petersburg Saint Europe & OECD high Indicator Petersburg Central Asia income Overall Best Performer Extent of conflict of interest regulation index (0- 5 6.3 6.4 9.3 (New Zealand) 10) Extent of shareholder governance index (0-10) 7.3 6.6 6.4 9.00 (Kazakhstan) Figure – Protecting Minority Investors in Russia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 63.33: Brazil (Rank: 43) 61.67: Saint Petersburg 58.33: Mexico (Rank: 62) 48.33: China (Rank: 119) Note: The ranking of economies on the strength of minority investor protections is determined by sorting their distance to frontier scores for protecting minority investors. These scores are the simple average of the distance to frontier scores for the extent of con ict of interest regulation index and the extent of shareholder governance index. Figure – Protecting Minority Investors in Saint Petersburg and comparator economies – Measure of Quality Saint Petersburg 8 2 6 5 9 7 Brazil 8 8 5 6 7 4 China 9 1 10 2 3 4 Mexico 4 5 8 6 7 5 OECD high income 7.3 5.6 6.5 5.2 6.3 7.4 Europe & Central Asia 7.4 4.6 7 5.5 7.2 6.8 0 5 10 15 20 25 30 35 40 45 Sub-Indicator Score Extent of corporate transparency index (0­10) Extent of director liability index (0­10) Extent of disclosure index (0­10) Extent of ownership and control index (0­10) Extent of shareholder rights index (0­10) Ease of shareholder suits index (0­10) Page 70   con ict of interest regulation index and the extent of shareholder governance index. Doing Business 2018 Russian Federation Figure – Protecting Minority Investors in Saint Petersburg and comparator economies – Measure of Quality Saint Petersburg 8 2 6 5 9 7 Brazil 8 8 5 6 7 4 China 9 1 10 2 3 4 Mexico 4 5 8 6 7 5 OECD high income 7.3 5.6 6.5 5.2 6.3 7.4 Europe & Central Asia 7.4 4.6 7 5.5 7.2 6.8 0 5 10 15 20 25 30 35 40 45 Sub-Indicator Score Extent of corporate transparency index (0­10) Extent of director liability index (0­10) Extent of disclosure index (0­10) Extent of ownership and control index (0­10) Extent of shareholder rights index (0­10) Ease of shareholder suits index (0­10) Details – Protecting Minority Investors in Saint Petersburg – Measure of Quality Answer Score Extent of con ict of interest regulation index (0-10) 5 Extent of disclosure index (0-10) 6 Which corporate body is legally su cient to approve the Buyer-Seller transaction? (0-3) CEO alone 0.0 Must an external body review the terms of the transaction before it takes place? (0-1) No 0.0 Must Mr. James disclose his con ict of interest to the board of directors? (0-2) Full disclosure of 2.0 all material facts Must Buyer disclose the transaction in published periodic lings (annual reports)? (0-2) Disclosure on 2.0 the transaction and on the con ict of interest Must Buyer immediately disclose the transaction to the public and/or shareholders? (0- Disclosure on 2.0 2) the transaction and on the con ict of interest Extent of director liability index (0-10) 2 Can shareholders representing 10% of Buyer's share capital sue directly or derivatively Yes 1.0 for the damage the transaction caused to Buyer? (0-1) Can shareholders hold the interested director liable for the damage the transaction Not liable 0.0 caused to Buyer? (0-2) Page 71   Extent of ownership and control index (0­10) Extent of shareholder rights index (0­10) Ease of shareholder suits index (0­10) Doing Business 2018 Russian Federation Details – Protecting Minority Investors in Saint Petersburg – Measure of Quality Answer Score Extent of con ict of interest regulation index (0-10) 5 Extent of disclosure index (0-10) 6 Which corporate body is legally su cient to approve the Buyer-Seller transaction? (0-3) CEO alone 0.0 Must an external body review the terms of the transaction before it takes place? (0-1) No 0.0 Must Mr. James disclose his con ict of interest to the board of directors? (0-2) Full disclosure of 2.0 all material facts Must Buyer disclose the transaction in published periodic lings (annual reports)? (0-2) Disclosure on 2.0 the transaction and on the con ict of interest Must Buyer immediately disclose the transaction to the public and/or shareholders? (0- Disclosure on 2.0 2) the transaction and on the con ict of interest Extent of director liability index (0-10) 2 Can shareholders representing 10% of Buyer's share capital sue directly or derivatively Yes 1.0 for the damage the transaction caused to Buyer? (0-1) Can shareholders hold the interested director liable for the damage the transaction Not liable 0.0 caused to Buyer? (0-2) Can shareholders hold the other directors liable for the damage the transaction caused Liable if negligent 1.0 to Buyer (0-2) Must Mr. James pay damages for the harm caused to Buyer upon a successful claim by No 0.0 shareholders? (0-1) Must Mr. James repay pro ts made from the transaction upon a successful claim by No 0.0 shareholders? (0-1) Is Mr. James disquali ed or ned and imprisoned upon a successful claim by No 0.0 shareholders? (0-1) Can a court void the transaction upon a successful claim by shareholders? (0-2) Only in case of 0.0 fraud or bad faith Ease of shareholder suits index (0-10) 7 Before suing can shareholders representing 10% of Buyer's share capital inspect the No 0.0 transaction documents? (0-1) Can the plainti obtain any documents from the defendant and witnesses at trial? (0-3) Any relevant 3.0 document Can the plainti request categories of documents from the defendant without No 0.0 Page 72   Before suing can shareholders representing 10% of Buyer's share capital inspect the No 0.0 transaction Doing 2018 (0-1) documents? Business Russian Federation Can the plainti obtain any documents from the defendant and witnesses at trial? (0-3) Any relevant 3.0 document Can the plainti request categories of documents from the defendant without No 0.0 identifying speci c ones? (0-1) Can the plainti directly question the defendant and witnesses at trial? (0-2) Yes 2.0 Is the level of proof required for civil suits lower than that of criminal cases? (0-1) Yes 1.0 Can shareholder plainti s recover their legal expenses from the company? (0-2) Yes if successful 1.0 Extent of shareholder governance index (0-10) 7.3 Extent of shareholder rights index (0-10) 9 Does the sale of 51% of Buyer's assets require shareholder approval? Yes 1.0 Can shareholders representing 10% of Buyer's share capital call for a meeting of Yes 1.0 shareholders? Must Buyer obtain its shareholders’ approval every time it issues new shares? No 0.0 Do shareholders automatically receive preemption rights every time Buyer issues new Yes 1.0 shares? Must shareholders approve the election and dismissal of the external auditor? Yes 1.0 Are changes to the rights of a class of shares only possible if the holders of the a ected Yes 1.0 shares approve? Assuming that Buyer is a limited company, does the sale of 51% of its assets require Yes 1.0 member approval? Assuming that Buyer is a limited company, can members representing 10% call for a Yes 1.0 meeting of members? Assuming that Buyer is a limited company, must all members consent to add a new Yes 1.0 member? Assuming that Buyer is a limited company, must a member rst o er to sell their Yes 1.0 interest to the existing members before they can sell to non-members? Extent of ownership and control index (0-10) 5 Is it forbidden to appoint the same individual as CEO and chair of the board of Yes 1.0 directors? Must the board of directors include independent and nonexecutive board members? No 0.0 Can shareholders remove members of the board of directors without cause before the Yes 1.0 end of their term? Must the board of directors include a separate audit committee exclusively comprising No 0.0 board members? Must a potential acquirer make a tender o er to all shareholders upon acquiring 50% Yes 1.0 of Buyer? Must Buyer pay declared dividends within a maximum period set by law? Yes 1.0 Page 73   Must a potential acquirer make a tender o er to all shareholders upon acquiring 50% Yes 1.0 of Buyer? Doing Business 2018 Russian Federation Must Buyer pay declared dividends within a maximum period set by law? Yes 1.0 Is a subsidiary prohibited from acquiring shares issued by its parent company? No 0.0 Assuming that Buyer is a limited company, must Buyer have a mechanism to resolve No 0.0 disagreements among members? Assuming that Buyer is a limited company, must a potential acquirer make a tender No 0.0 o er to all shareholders upon acquiring 50% of Buyer? Assuming that Buyer is a limited company, must Buyer distribute pro ts within a Yes 1.0 maximum period set by law? Extent of corporate transparency index (0-10) 8 Must Buyer disclose direct and indirect bene cial ownership stakes representing 5%? Yes 1.0 Must Buyer disclose information about board members’ primary employment and Yes 1.0 directorships in other companies? Must Buyer disclose the compensation of individual managers? No 0.0 Must a detailed notice of general meeting be sent 21 days before the meeting? No 0.0 Can shareholders representing 5% of Buyer’s share capital put items on the general Yes 1.0 meeting agenda? Must Buyer's annual nancial statements be audited by an external auditor? Yes 1.0 Must Buyer disclose its audit reports to the public? Yes 1.0 Assuming that Buyer is a limited company, must members meet at least once a year? Yes 1.0 Assuming that Buyer is a limited company, can members representing 5% put items on Yes 1.0 the meeting agenda? Assuming that Buyer is a limited company, must Buyer's annual nancial statements be Yes 1.0 audited by an external auditor? Paying Taxes This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as measures the administrative burden in paying taxes and contributions. The most recent round of data collection for the project was completed on June 30, 2017 covering for the Paying Taxes indicator calendar year 2016 (January 1, 2016 – December 31, 2016). Last year (Doing Business 2017) the scope of data collection was expanded to better understand the overall tax environment in an economy. The questionnaire was expanded to include new questions on post- ling processes: VAT refund and tax audit. The data shows where post ling processes and practices work e ciently and what drives the di erences in the overall tax compliance cost across economies. The new section covers both the legal framework and the administrative burden on businesses to comply with post ling processes. See the methodology for more information. What the indicators measure Case study assumptions Tax payments for a manufacturing company in Using a case scenario, Doing Business records taxes and mandatory 2016 (number per year adjusted for electronic and contributions a medium size company must pay in a year, and measures joint ling and payment) the administrative burden of paying taxes, contributions and dealing with Page 74   post ling processes. Information is also compiled on frequency of ling Assuming that Buyer is a limited company, must Buyer's annual nancial statements be Yes 1.0 audited by an external auditor? Doing Business 2018 Russian Federation Paying Taxes This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as measures the administrative burden in paying taxes and contributions. The most recent round of data collection for the project was completed on June 30, 2017 covering for the Paying Taxes indicator calendar year 2016 (January 1, 2016 – December 31, 2016). Last year (Doing Business 2017) the scope of data collection was expanded to better understand the overall tax environment in an economy. The questionnaire was expanded to include new questions on post- ling processes: VAT refund and tax audit. The data shows where post ling processes and practices work e ciently and what drives the di erences in the overall tax compliance cost across economies. The new section covers both the legal framework and the administrative burden on businesses to comply with post ling processes. See the methodology for more information. What the indicators measure Case study assumptions Tax payments for a manufacturing company in Using a case scenario, Doing Business records taxes and mandatory 2016 (number per year adjusted for electronic and contributions a medium size company must pay in a year, and measures joint ling and payment) the administrative burden of paying taxes, contributions and dealing with post ling processes. Information is also compiled on frequency of ling Total number of taxes and contributions paid, and payments, time taken to comply with tax laws, time taken to comply including consumption taxes (value added tax, with the requirements of post ling processes and time waiting. sales tax or goods and service tax) Method and frequency of filing and payment To make data comparable across economies, several assumptions are used: Time required to comply with 3 major taxes - TaxpayerCo is a medium-size business that started operations on January (hours per year) 1, 2015. It produces ceramic flowerpots and sells them at retail. All taxes Collecting information, computing tax payable and contributions recorded are paid in the second year of operation Completing tax return, filing with agencies (calendar year 2016). Taxes and mandatory contributions are measured at all levels of government. Arranging payment or withholding Preparing separate tax accounting books, if The VAT refund process: required - In June 2016, TaxpayerCo. makes a large capital purchase: the value of the Total tax and contribution rate (% of pro t before machine is 65 times income per capita of the economy. Sales are equally all taxes) spread per month (1,050 times income per capita divided by 12) and cost of goods sold are equally expensed per month (875 times income per Profit or corporate income tax capita divided by 12). The machinery seller is registered for VAT and excess Social contributions, labor taxes paid by input VAT incurred in June will be fully recovered after four consecutive employer months if the VAT rate is the same for inputs, sales and the machine and Property and property transfer taxes the tax reporting period is every month. Input VAT will exceed Output VAT Dividend, capital gains, financial transactions in June 2016. taxes The corporate income tax audit process: Waste collection, vehicle, road and other taxes - An error in calculation of income tax liability (for example, use of incorrect Post ling Index tax depreciation rates, or incorrectly treating an expense as tax deductible) leads to an incorrect income tax return and a corporate income Time to comply with a VAT refund tax underpayment. TaxpayerCo. discovered the error and voluntarily Time to receive a VAT refund noti ed the tax authority. The value of the underpaid income tax liability is Time to comply with a corporate income tax audit 5% of the corporate income tax liability due. TaxpayerCo. submits corrected information after the deadline for submitting the annual tax Time to complete a corporate income tax audit return, but within the tax assessment period. Paying Taxes - Moscow Europe & OECD high Indicator Moscow Central Asia income Overall Best Performer Page 75   return, but within the tax assessment period. Doing Business 2018 Russian Federation Paying Taxes - Moscow Europe & OECD high Indicator Moscow Central Asia income Overall Best Performer Payments (number per year) 7 16.5 10.9 3 (Hong Kong SAR, China) Time (hours per year) 168 218.4 160.7 55 (Luxembourg) Total tax and contribution rate (% of profit) 47.6 33.1 40.1 18.47% (32 Economies) Postfiling index (0-100) 73.14 65.20 83.45 99.38 (Estonia) Figure – Paying Taxes in Russia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 79.26: Moscow 67.01: Mexico (Rank: 115) 62.90: China (Rank: 130) 32.97: Brazil (Rank: 184) Note: The ranking of economies on the ease of paying taxes is determined by sorting their distance to frontier scores on the ease of paying taxes. These scores are the simple average of the distance to frontier scores for each of the four component indicators – number of tax payments. time, total tax rate and post ling index – with a threshold and a nonlinear transformation applied to one of the component indicators, the total tax rate. The nonlinear distance to frontier for the total tax rate is equal to the distance to frontier for the total tax rate to the power of 0.8. The threshold is de ned as the total tax rate at the 15th percentile of the overall distribution for all years included in the analysis up to and including Doing Business 2015, which is 26.1%. All economies with a total tax rate below this threshold receive the same score as the economy at the threshold. Figure – Paying Taxes in Moscow and comparator economies – Measure of Quality 80 73.14 70 65.20 60 49.08 Index score 50 40.51 40 30 20 7.80 10 0 Moscow Brazil China Mexico Europe & Central Asia Details – Paying Taxes in Moscow Total tax and Page 76   Tax or mandatory Payments Notes on Time Statutory contribution rate (% Notes Doing Business 2018 Russian Federation Figure – Paying Taxes in Moscow and comparator economies – Measure of Quality 80 73.14 70 65.20 60 49.08 Index score 50 40.51 40 30 20 7.80 10 0 Moscow Brazil China Mexico Europe & Central Asia Details – Paying Taxes in Moscow Total tax and Tax or mandatory Payments Notes on Time Statutory contribution rate (% Notes contribution (number) Payments (hours) tax rate Tax base of profit) on TTR Pension fund contribution 1 online 22% gross salaries 24.52 Corporate income tax 1 online 53 20% taxable profits 8.78 Federal obligatory medical 0 online 5.1% gross salaries 5.75 insurance fund contributions and jointly Social security insurance 1 online 76 2.9% gross salaries 3.16 Accidents tax 0 online 2.5% gross salaries 2.82 and jointly Property tax 1 online 2.2% book value of 2.08 property Land tax 1 online 0.3%-1.5% cadastral value 0.44 of the land plot Transport tax 1 online various engine 0.05 rates capacity of vehicles Value Added Tax 1 online 39 18% value added 0.00 not included Personal income tax 0 online 13% gross salaries 0.00 withheld and jointly Totals 7 168 47.6 Details – Paying Taxes in Moscow – Tax by Type Taxes by type Answer Page 77   Totals 7 168 47.6 Doing Business 2018 Russian Federation Details – Paying Taxes in Moscow – Tax by Type Taxes by type Answer Profit tax (% of profit) 8.8 Labor tax and contributions (% of profit) 36.3 Other taxes (% of profit) 2.6 Details – Paying Taxes in Moscow – Measure of Quality Answer Score Post ling index (0-100) 73.14 VAT refunds Does VAT exist? Yes Does a VAT refund process exist per the case study? Yes Restrictions on VAT refund process None Percentage of cases exposed to a VAT audit (%) 75% - 100% Is there a mandatory carry forward period? No Time to comply with VAT refund (hours) 7.2 85.6 Time to obtain a VAT refund (weeks) 19.8 67.98 Corporate income tax audits Does corporate income tax exist? Yes Percentage of cases exposed to a corporate income tax audit (%) 75% - 100% Time to comply with a corporate income tax audit (hours) 7.5 88.99 Time to complete a corporate income tax audit (weeks) 16.0 50 Notes: Names of taxes have been standardized. For instance income tax, pro t tax, tax on company's income are all named corporate income tax in this table. The hours for VAT include all the VAT and sales taxes applicable. The hours for Social Security include all the hours for labor taxes and mandatory contributions in general. The post ling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax audit and time to complete a corporate income tax audit. N/A = Not applicable. Paying Taxes - Saint Petersburg Saint Europe & OECD high Indicator Petersburg Central Asia income Overall Best Performer Payments (number per year) 7 16.5 10.9 3 (Hong Kong SAR, Page 78   China) a corporate income tax audit and time to complete a corporate income tax audit. N/A = Not applicable. Doing Business 2018 Russian Federation Paying Taxes - Saint Petersburg Saint Europe & OECD high Indicator Petersburg Central Asia income Overall Best Performer Payments (number per year) 7 16.5 10.9 3 (Hong Kong SAR, China) Time (hours per year) 168 218.4 160.7 55 (Luxembourg) Total tax and contribution rate (% of profit) 47.3 33.1 40.1 18.47% (32 Economies) Postfiling index (0-100) 73.14 65.20 83.45 99.38 (Estonia) Figure – Paying Taxes in Russia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 79.37: Saint Petersburg 67.01: Mexico (Rank: 115) 62.90: China (Rank: 130) 32.97: Brazil (Rank: 184) Note: The ranking of economies on the ease of paying taxes is determined by sorting their distance to frontier scores on the ease of paying taxes. These scores are the simple average of the distance to frontier scores for each of the four component indicators – number of tax payments. time, total tax rate and post ling index – with a threshold and a nonlinear transformation applied to one of the component indicators, the total tax rate. The nonlinear distance to frontier for the total tax rate is equal to the distance to frontier for the total tax rate to the power of 0.8. The threshold is de ned as the total tax rate at the 15th percentile of the overall distribution for all years included in the analysis up to and including Doing Business 2015, which is 26.1%. All economies with a total tax rate below this threshold receive the same score as the economy at the threshold. Figure – Paying Taxes in Saint Petersburg and comparator economies – Measure of Quality 80 73.14 70 65.20 60 49.08 Index score 50 40.51 40 30 20 7.80 10 0 Saint Petersburg Brazil China Mexico Europe & Central Asia Details – Paying Taxes in Saint Petersburg Page 79   Doing Business 2018 Russian Federation Figure – Paying Taxes in Saint Petersburg and comparator economies – Measure of Quality 80 73.14 70 65.20 60 49.08 Index score 50 40.51 40 30 20 7.80 10 0 Saint Petersburg Brazil China Mexico Europe & Central Asia Details – Paying Taxes in Saint Petersburg Total tax and Tax or mandatory Payments Notes on Time Statutory contribution rate (% Notes contribution (number) Payments (hours) tax rate Tax base of profit) on TTR Pension fund contribution 1 online 22% gross salaries 24.52 Corporate income tax 1 online 53 20% taxable profits 8.85 Federal obligatory medical 0 online 5.1% gross salaries 5.75 insurance fund contributions and jointly Social security insurance 1 online 76 2.9% gross salaries 3.16 Accidents tax 0 online 2.5% gross salaries 2.82 and jointly Property tax 1 online 2.2% book value of 2.08 property Land tax 1 online 0.3%-1.5% cadastral value 0.09 of the land plot Transport tax 1 online various engine 0.05 rates capacity of vehicles Value Added Tax 1 online 39 18% value added 0.00 not included Personal income tax 0 online 13% gross salaries 0.00 withheld and jointly Totals 7 168 47.3 Details – Paying Taxes in Saint Petersburg – Tax by Type Taxes by type Answer Page 80   Totals 7 168 47.3 Doing Business 2018 Russian Federation Details – Paying Taxes in Saint Petersburg – Tax by Type Taxes by type Answer Profit tax (% of profit) 8.8 Labor tax and contributions (% of profit) 36.3 Other taxes (% of profit) 2.2 Details – Paying Taxes in Saint Petersburg – Measure of Quality Answer Score Post ling index (0-100) 73.14 VAT refunds Does VAT exist? Yes Does a VAT refund process exist per the case study? Yes Restrictions on VAT refund process None Percentage of cases exposed to a VAT audit (%) 75% - 100% Is there a mandatory carry forward period? No Time to comply with VAT refund (hours) 7.2 85.6 Time to obtain a VAT refund (weeks) 19.8 67.98 Corporate income tax audits Does corporate income tax exist? Yes Percentage of cases exposed to a corporate income tax audit (%) 25% - 49% Time to comply with a corporate income tax audit (hours) 7.5 88.99 Time to complete a corporate income tax audit (weeks) 16.0 50 Notes: Names of taxes have been standardized. For instance income tax, pro t tax, tax on company's income are all named corporate income tax in this table. The hours for VAT include all the VAT and sales taxes applicable. The hours for Social Security include all the hours for labor taxes and mandatory contributions in general. The post ling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax audit and time to complete a corporate income tax audit. N/A = Not applicable. Trading across Borders Doing Business records the time and cost associated with the logistical process of exporting and importing goods. Doing Business measures the time and cost (excluding tari s) associated with three sets of procedures—documentary compliance, border compliance and domestic transport—within the overall process of exporting or importing a shipment of goods. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. Page 81   Given the importance of trade digitalization, in Doing Business 2018, the Trading across Borders questionnaire included research a corporate income tax audit and time to complete a corporate income tax audit. N/A = Not applicable. Doing Business 2018 Russian Federation Trading across Borders Doing Business records the time and cost associated with the logistical process of exporting and importing goods. Doing Business measures the time and cost (excluding tari s) associated with three sets of procedures—documentary compliance, border compliance and domestic transport—within the overall process of exporting or importing a shipment of goods. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. Given the importance of trade digitalization, in Doing Business 2018, the Trading across Borders questionnaire included research questions on the availability and status of implementation of Electronic Data Interchange (EDI) and Single Window (SW) systems. With this information, Doing Business built a comprehensive dataset on the adoption and level of sophistication of electronic platforms in 190 economies. These data are not used to compute the distance to frontier score or ranking of the ease of doing business. The new dataset on EDI and SW systems is available here. What the indicators measure Case study assumptions Documentary compliance To make the data comparable across economies, a few assumptions are made about the traded goods and the transactions: Obtaining, preparing and submitting documents during transport, clearance, inspections and port Time: Time is measured in hours, and 1 day is 24 hours (for example, 22 or border handling in origin economy days are recorded as 22×24=528 hours). If customs clearance takes 7.5 Obtaining, preparing and submitting documents hours, the data are recorded as is. Alternatively, suppose documents are required by destination economy and any transit submitted to a customs agency at 8:00a.m., are processed overnight and economies can be picked up at 8:00a.m. the next day. The time for customs clearance Covers all documents required by law and in would be recorded as 24 hours because the actual procedure took 24 practice, including electronic submissions of hours. information Border compliance Cost: Insurance cost and informal payments for which no receipt is issued are excluded from the costs recorded. Costs are reported in U.S. dollars. Customs clearance and inspections Contributors are asked to convert local currency into U.S. dollars based on Inspections by other agencies (if applied to more the exchange rate prevailing on the day they answer the questionnaire. than 20% of shipments) Contributors are private sector experts in international trade logistics and Handling and inspections that take place at the are informed about exchange rates. economy’s port or border Assumptions of the case study: - For all 190 economies covered by Doing Domestic transport Business, it is assumed a shipment is in a warehouse in the largest Loading or unloading of the shipment at the business city of the exporting economy and travels to a warehouse in the warehouse or port/border largest business city of the importing economy. - It is assumed each Transport between warehouse and port/border economy imports 15 metric tons of containerized auto parts (HS 8708) Traffic delays and road police checks while from its natural import partner—the economy from which it imports the shipment is en route largest value (price times quantity) of auto parts. It is assumed each economy exports the product of its comparative advantage (de ned by the largest export value) to its natural export partner—the economy that is the largest purchaser of this product. Shipment value is assumed to be $50,000. - The mode of transport is the one most widely used for the chosen export or import product and the trading partner, as is the seaport, or land border crossing. - All electronic information submissions requested by any government agency in connection with the shipment are considered to be documents obtained, prepared and submitted during the export or import process. - A port or border is a place (seaport, airport or land border crossing) where merchandise can enter or leave an economy. - Relevant government agencies include customs, port authorities, road police, border guards, standardization agencies, ministries or departments of agriculture or industry, national security agencies and any other government authorities. Page 82   of agriculture or industry, national security agencies and any other Doing Business 2018 Russian Federation government authorities. Trading across Borders - Moscow Europe & OECD high Indicator Moscow Central Asia income Overall Best Performer Time to export: Border compliance (hours) 72 28.0 12.7 0 (17 Economies) Cost to export: Border compliance (USD) 665 191.4 149.9 0.00 (19 Economies) Time to export: Documentary compliance 26 27.9 2.4 1.0 (25 Economies) (hours) Cost to export: Documentary compliance (USD) 80 113.8 35.4 0.00 (19 Economies) Time to import: Border compliance (hours) 14 25.9 8.7 0.00 (21 Economies) Cost to import: Border compliance (USD) 400 185.1 111.6 0.00 (27 Economies) Time to import: Documentary compliance 43 27.3 3.5 1.0 (30 Economies) (hours) Cost to import: Documentary compliance (USD) 160 94.7 25.6 0.00 (30 Economies) Figure – Trading across Borders in Russia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 82.09: Mexico (Rank: 63) 72.45: Moscow 69.91: China (Rank: 97) 59.78: Brazil (Rank: 139) Note: The ranking of economies on the ease of trading across borders is determined by sorting their distance to frontier scores for trading across borders. These scores are the simple average of the distance to frontier scores for the time and cost for documentary compliance and border compliance to export and import (domestic transport is not used for calculating the ranking). Figure – Trading across Borders in Moscow – Time and Cost Time Cost 80 665 700 72 70 600 60 500 Time (hours) 400 Cost (USD) 50 43 400 40 300 30 26 160 200 20 14 80 Page 83   100 10 Doing Business 2018 Russian Federation Figure – Trading across Borders in Moscow – Time and Cost Time Cost 80 665 700 72 70 600 60 500 Time (hours) 400 Cost (USD) 50 43 400 40 300 30 26 160 200 20 14 80 100 10 0 0 Export - Border Compliance Export - Documentary Compliance Import - Border Compliance Import - Documentary Compliance Details – Trading across Borders in Moscow Characteristics Export Import Product HS 72 : Iron and steel HS 8708: Parts and accessories of motor vehicles Trade partner Italy Germany Border St Petersburg Port Krasnaya gorka, Smolenskaya oblast. Distance (km) 724 500 Domestic transport time (hours) 20 10 Domestic transport cost (USD) 958 650 Details – Trading across Borders in Moscow – Components of Border Compliance Time to Complete Associated Costs (hours) (USD) Export: Clearance and inspections required by customs authorities 10.0 300.0 Export: Clearance and inspections required by agencies other than customs 0.0 0.0 Export: Port or border handling 72.0 365.0 Import: Clearance and inspections required by customs authorities 12.0 400.0 Import: Clearance and inspections required by agencies other than customs 0.0 0.0 Import: Port or border handling 2.0 0.0 Details – Trading across Borders in Moscow – Trade Documents Export Import Acceptance order Acceptance order Bill of lading Certificate of conformity Page 84   Domestic transport cost (USD) 958 650 Doing Business 2018 Russian Federation Details – Trading across Borders in Moscow – Components of Border Compliance Time to Complete Associated Costs (hours) (USD) Export: Clearance and inspections required by customs authorities 10.0 300.0 Export: Clearance and inspections required by agencies other than customs 0.0 0.0 Export: Port or border handling 72.0 365.0 Import: Clearance and inspections required by customs authorities 12.0 400.0 Import: Clearance and inspections required by agencies other than customs 0.0 0.0 Import: Port or border handling 2.0 0.0 Details – Trading across Borders in Moscow – Trade Documents Export Import Acceptance order Acceptance order Bill of lading Certificate of conformity Consignment note/ CMR waybill Commercial invoice Commercial Invoice (original) Consignment note Customs Export Declaration Customs Import Declaration Declaration of origin / Certificate of Origin Letter from the bank certifying opening of letter of credit Export/loading order Packing list Packing list Sales purchase contract Sales purchase contract SOLAS certificate SOLAS certificate Trading across Borders - Saint Petersburg Saint Europe & OECD high Indicator Petersburg Central Asia income Overall Best Performer Time to export: Border compliance (hours) 72 28.0 12.7 0 (17 Economies) Cost to export: Border compliance (USD) 665 191.4 149.9 0.00 (19 Economies) Time to export: Documentary compliance 24 27.9 2.4 1.0 (25 Economies) (hours) Cost to export: Documentary compliance (USD) 120 113.8 35.4 0.00 (19 Economies) Time to import: Border compliance (hours) 96 25.9 8.7 0.00 (21 Economies) Page 85   SOLAS certificate Doing Business 2018 Russian Federation Trading across Borders - Saint Petersburg Saint Europe & OECD high Indicator Petersburg Central Asia income Overall Best Performer Time to export: Border compliance (hours) 72 28.0 12.7 0 (17 Economies) Cost to export: Border compliance (USD) 665 191.4 149.9 0.00 (19 Economies) Time to export: Documentary compliance 24 27.9 2.4 1.0 (25 Economies) (hours) Cost to export: Documentary compliance (USD) 120 113.8 35.4 0.00 (19 Economies) Time to import: Border compliance (hours) 96 25.9 8.7 0.00 (21 Economies) Cost to import: Border compliance (USD) 1025 185.1 111.6 0.00 (27 Economies) Time to import: Documentary compliance 43 27.3 3.5 1.0 (30 Economies) (hours) Cost to import: Documentary compliance (USD) 135 94.7 25.6 0.00 (30 Economies) Figure – Trading across Borders in Russia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 82.09: Mexico (Rank: 63) 69.91: China (Rank: 97) 61.61: Saint Petersburg 59.78: Brazil (Rank: 139) Note: The ranking of economies on the ease of trading across borders is determined by sorting their distance to frontier scores for trading across borders. These scores are the simple average of the distance to frontier scores for the time and cost for documentary compliance and border compliance to export and import (domestic transport is not used for calculating the ranking). Figure – Trading across Borders in Saint Petersburg – Time and Cost Time Cost 120 1200 1025 100 96 1000 80 72 800 Time (hours) Cost (USD) 665 60 600 43 40 400 24 20 120 135 200 Page 86   Doing Business 2018 Russian Federation Figure – Trading across Borders in Saint Petersburg – Time and Cost Time Cost 120 1200 1025 100 96 1000 80 72 800 Time (hours) Cost (USD) 665 60 600 43 40 400 24 20 120 135 200 0 0 Export - Border Compliance Export - Documentary Compliance Import - Border Compliance Import - Documentary Compliance Details – Trading across Borders in Saint Petersburg Characteristics Export Import Product HS 72 : Iron and steel HS 8708: Parts and accessories of motor vehicles Trade partner Italy Germany Border St Petersburg Port Saint Petersburg port Distance (km) 8 8 Domestic transport time (hours) 4 4 Domestic transport cost (USD) 246 246 Details – Trading across Borders in Saint Petersburg – Components of Border Compliance Time to Complete Associated Costs (hours) (USD) Export: Clearance and inspections required by customs authorities 10.0 300.0 Export: Clearance and inspections required by agencies other than customs 0.0 0.0 Export: Port or border handling 72.0 365.0 Import: Clearance and inspections required by customs authorities 10.0 300.0 Import: Clearance and inspections required by agencies other than customs 0.0 0.0 Import: Port or border handling 96.0 725.0 Details – Trading across Borders in Saint Petersburg – Trade Documents Export Import Acceptance order Acceptance order Bill of lading Bill of lading Page 87   Domestic transport cost (USD) 246 246 Doing Business 2018 Russian Federation Details – Trading across Borders in Saint Petersburg – Components of Border Compliance Time to Complete Associated Costs (hours) (USD) Export: Clearance and inspections required by customs authorities 10.0 300.0 Export: Clearance and inspections required by agencies other than customs 0.0 0.0 Export: Port or border handling 72.0 365.0 Import: Clearance and inspections required by customs authorities 10.0 300.0 Import: Clearance and inspections required by agencies other than customs 0.0 0.0 Import: Port or border handling 96.0 725.0 Details – Trading across Borders in Saint Petersburg – Trade Documents Export Import Acceptance order Acceptance order Bill of lading Bill of lading Commercial invoice Certificate of conformity Consignment note Commercial invoice Customs Export Declaration Consignment note Declaration of origin Customs import declaration Export/loading order Document of warehouse Packing list Letter from the bank certifying opening of letter of credit Sales purchase contract Packing list SOLAS certificate Sales purchase contract SOLAS certificate Enforcing Contracts The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local rst-instance court, and the quality of judicial processes index, evaluating whether each economy has adopted a series of good practices that promote quality and e ciency in the court system. The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to enforce a contract through the The dispute in the case study involves the breach of a sales contract courts (calendar days) between 2 domestic businesses. The case study assumes that the court hears an expert on the quality of the goods in dispute. This distinguishes Time to file and serve the case Page 88   the case from simple debt enforcement. Time for trial and to obtain the judgment SOLAS certificate Doing Business 2018 Russian Federation Enforcing Contracts The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local rst-instance court, and the quality of judicial processes index, evaluating whether each economy has adopted a series of good practices that promote quality and e ciency in the court system. The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to enforce a contract through the The dispute in the case study involves the breach of a sales contract courts (calendar days) between 2 domestic businesses. The case study assumes that the court hears an expert on the quality of the goods in dispute. This distinguishes Time to file and serve the case the case from simple debt enforcement. Time for trial and to obtain the judgment To make the data comparable across economies, Doing Business uses Time to enforce the judgment several assumptions about the case: Cost required to enforce a contract through the - The dispute concerns a lawful transaction between two businesses (Seller courts (% of claim) and Buyer), both located in the economy’s largest business city. For 11 Attorney fees economies the data are also collected for the second largest business city. - The buyer orders custom-made goods, then fails to pay. Court fees - The value of the dispute is 200% of the income per capita or the Enforcement fees equivalent in local currency of USD 5,000, whichever is greater. Quality of judicial processes index (0-18) - The seller sues the buyer before the court with jurisdiction over commercial cases worth 200% of income per capita or $5,000. Court structure and proceedings (-1-5) - The seller requests a pretrial attachment to secure the claim. Case management (0-6) - The dispute on the quality of the goods requires an expert opinion. Court automation (0-4) - The judge decides in favor of the seller; there is no appeal. Alternative dispute resolution (0-3) - The seller enforces the judgment through a public sale of the buyer’s movable assets. Enforcing Contracts - Moscow Standardized Case Claim value RUB 1,074,065.00 Court name Moscow Arbitrazh Court City Covered Moscow Europe & OECD high Indicator Moscow Central Asia income Overall Best Performer Time (days) 340 489.9 577.8 164.00 (Singapore) Cost (% of claim value) 15.0 26.2 21.5 9.00 (Iceland) Quality of judicial processes index (0-18) 9.5 10.0 11.0 15.50 (Australia) Figure – Enforcing Contracts in Russia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 Page 89   78.23: China (Rank: 5) of judicial processes Quality Business Doing index (0-18) 2018 Russian Federation 9.5 10.0 11.0 15.50 (Australia) Figure – Enforcing Contracts in Russia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 78.23: China (Rank: 5) 72.66: Moscow 67.01: Mexico (Rank: 41) 66.00: Brazil (Rank: 47) Note: The ranking of economies on the ease of enforcing contracts is determined by sorting their distance to frontier scores for enforcing contracts. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Enforcing Contracts in Moscow – Time and Cost Time Cost 800 731 33.0 35 700 30 Cost (% of claim value) 26.2 577.8 600 22.0 496.3 25 489.9 21.5 Time (days) 500 20 400 16.2 341 340 15.0 15 300 200 10 100 5 0 0 Brazil China Europe & Mexico Moscow OECD high income Central Asia Figure – Enforcing Contracts in Moscow and comparator economies – Measure of Quality Moscow 2.5 4 0 3 Brazil 3 3 3 4.1 China 3 4.5 3 4.5 Mexico 2.5 3.3 0.5 3.8 OECD high income 2.5 2.9 2 3.6 Europe & Central Asia 2.1 2.9 1.5 3.5 0 2 4 6 8 10 12 14 Page 90   16 Brazil China Europe & Mexico Moscow OECD high income Central Asia Doing Business 2018 Russian Federation Figure – Enforcing Contracts in Moscow and comparator economies – Measure of Quality Moscow 2.5 4 0 3 Brazil 3 3 3 4.1 China 3 4.5 3 4.5 Mexico 2.5 3.3 0.5 3.8 OECD high income 2.5 2.9 2 3.6 Europe & Central Asia 2.1 2.9 1.5 3.5 0 2 4 6 8 10 12 14 16 Sub-Indicator Score Alternative dispute resolution (0­3) Case management (0­6) Court automation (0­4) Court structure and proceedings (­1­5) Details – Enforcing Contracts in Moscow Indicator Time (days) 340 Filing and service 60 Trial and judgment 160 Enforcement of judgment 120 Cost (% of claim value) 15.0 Attorney fees 10 Court fees 5 Enforcement fees 0 Quality of judicial processes index (0-18) 9.5 Court structure and proceedings (-1-5) 3.0 Case management (0-6) 4.0 Court automation (0-4) 0.0 Alternative dispute resolution (0-3) 2.5 Details – Enforcing Contracts in Moscow – Measure of Quality Page 91   Alternative dispute resolution (0-3) 2.5 Doing Business 2018 Russian Federation Details – Enforcing Contracts in Moscow – Measure of Quality Answer Score Quality of judicial processes index (0-18) 9.5 Court structure and proceedings (-1-5) 3.0 1. Is there a court or division of a court dedicated solely to hearing commercial cases? Yes 1.5 2. Small claims court 0.0 2.a. Is there a small claims court or a fast-track procedure for small claims? No 2.b. If yes, is self-representation allowed? n.a. 3. Is pretrial attachment available? Yes 1.0 4. Are new cases assigned randomly to judges? Yes, but manual 0.5 5. Does a woman's testimony carry the same evidentiary weight in court as a man's? Yes 0.0 Case management (0-6) 4.0 1. Time standards 0.0 1.a. Are there laws setting overall time standards for key court events in a civil case? Yes 1.b. If yes, are the time standards set for at least three court events? No 1.c. Are these time standards respected in more than 50% of cases? Yes 2. Adjournments 0.0 2.a. Does the law regulate the maximum number of adjournments that can be No granted? 2.b. Are adjournments limited to unforeseen and exceptional circumstances? No 2.c. If rules on adjournments exist, are they respected in more than 50% of cases? n.a. 3. Can two of the following four reports be generated about the competent court: (i) Yes 1.0 time to disposition report; (ii) clearance rate report; (iii) age of pending cases report; and (iv) single case progress report? 4. Is a pretrial conference among the case management techniques used before the Yes 1.0 competent court? 5. Are there any electronic case management tools in place within the competent court Yes 1.0 for use by judges? 6. Are there any electronic case management tools in place within the competent court Yes 1.0 for use by lawyers? Court automation (0-4) 0.0 1. Can the initial complaint be led electronically through a dedicated platform within No 0.0 the competent court? 2. Is it possible to carry out service of process electronically for claims led before the No 0.0 competent court? Page 92   1. Can the initial complaint be led electronically through a dedicated platform within No 0.0 Businesscourt? the competent Doing 2018 Russian Federation 2. Is it possible to carry out service of process electronically for claims led before the No 0.0 competent court? 3. Can court fees be paid electronically within the competent court? No 0.0 4. Publication of judgments 0.0 4.a Are judgments rendered in commercial cases at all levels made available to the No general public through publication in o cial gazettes, in newspapers or on the internet or court website? 4.b. Are judgments rendered in commercial cases at the appellate and supreme No court level made available to the general public through publication in o cial gazettes, in newspapers or on the internet or court website? Alternative dispute resolution (0-3) 2.5 1. Arbitration 1.0 1.a. Is domestic commercial arbitration governed by a consolidated law or Yes consolidated chapter or section of the applicable code of civil procedure encompassing substantially all its aspects? 1.b. Are there any commercial disputes—aside from those that deal with public Yes order or public policy—that cannot be submitted to arbitration? 1.c. Are valid arbitration clauses or agreements usually enforced by the courts? Yes 2. Mediation/Conciliation 1.5 2.a. Is voluntary mediation or conciliation available? Yes 2.b. Are mediation, conciliation or both governed by a consolidated law or Yes consolidated chapter or section of the applicable code of civil procedure encompassing substantially all their aspects? 2.c. Are there nancial incentives for parties to attempt mediation or conciliation (i.e., Yes if mediation or conciliation is successful, a refund of court ling fees, income tax credits or the like)? Enforcing Contracts - Saint Petersburg Standardized Case Claim value RUB 1,074,065.00 Court name Commercial (Arbitrazh) Court of St. Petersburg and Leningrad Region City Covered Saint Petersburg Saint Europe & OECD high Indicator Petersburg Central Asia income Overall Best Performer Time (days) 330 489.9 577.8 164.00 (Singapore) Cost (% of claim value) 20.0 26.2 21.5 9.00 (Iceland) Quality of judicial processes index (0-18) 9.5 10.0 11.0 15.50 (Australia) Page 93   if mediation or conciliation is successful, a refund of court ling fees, income tax credits or the like)? Doing Business 2018 Russian Federation Enforcing Contracts - Saint Petersburg Standardized Case Claim value RUB 1,074,065.00 Court name Commercial (Arbitrazh) Court of St. Petersburg and Leningrad Region City Covered Saint Petersburg Saint Europe & OECD high Indicator Petersburg Central Asia income Overall Best Performer Time (days) 330 489.9 577.8 164.00 (Singapore) Cost (% of claim value) 20.0 26.2 21.5 9.00 (Iceland) Quality of judicial processes index (0-18) 9.5 10.0 11.0 15.50 (Australia) Figure – Enforcing Contracts in Russia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 78.23: China (Rank: 5) 71.06: Saint Petersburg 67.01: Mexico (Rank: 41) 66.00: Brazil (Rank: 47) Note: The ranking of economies on the ease of enforcing contracts is determined by sorting their distance to frontier scores for enforcing contracts. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Enforcing Contracts in Saint Petersburg – Time and Cost Time Cost 800 731 33.0 35 700 30 Cost (% of claim value) 26.2 577.8 600 22.0 496.3 25 489.9 21.5 Time (days) 500 20.0 20 400 16.2 341 330 15 300 10 200 100 5 0 0 Brazil China Europe & Mexico OECD high income Saint Petersburg Central Asia Page 94   Figure – Enforcing Contracts in Saint Petersburg and comparator economies – Measure of Quality Brazil China Europe & Mexico OECD high income Saint Petersburg Central Asia Doing Business 2018 Russian Federation Figure – Enforcing Contracts in Saint Petersburg and comparator economies – Measure of Quality Saint Petersburg 2.5 4 0 3 Brazil 3 3 3 4.1 China 3 4.5 3 4.5 Mexico 2.5 3.3 0.5 3.8 OECD high income 2.5 2.9 2 3.6 Europe & Central Asia 2.1 2.9 1.5 3.5 0 2 4 6 8 10 12 14 16 Sub-Indicator Score Alternative dispute resolution (0­3) Case management (0­6) Court automation (0­4) Court structure and proceedings (­1­5) Details – Enforcing Contracts in Saint Petersburg Indicator Time (days) 330 Filing and service 60 Trial and judgment 150 Enforcement of judgment 120 Cost (% of claim value) 20.0 Attorney fees 15 Court fees 5 Enforcement fees 0 Quality of judicial processes index (0-18) 9.5 Court structure and proceedings (-1-5) 3.0 Case management (0-6) 4.0 Court automation (0-4) 0.0 Alternative dispute resolution (0-3) 2.5 Details – Enforcing Contracts in Saint Petersburg – Measure of Quality Page 95   Alternative dispute resolution (0-3) 2.5 Doing Business 2018 Russian Federation Details – Enforcing Contracts in Saint Petersburg – Measure of Quality Answer Score Quality of judicial processes index (0-18) 9.5 Court structure and proceedings (-1-5) 3.0 1. Is there a court or division of a court dedicated solely to hearing commercial cases? Yes 1.5 2. Small claims court 0.0 2.a. Is there a small claims court or a fast-track procedure for small claims? No 2.b. If yes, is self-representation allowed? n.a. 3. Is pretrial attachment available? Yes 1.0 4. Are new cases assigned randomly to judges? Yes, but manual 0.5 5. Does a woman's testimony carry the same evidentiary weight in court as a man's? Yes 0.0 Case management (0-6) 4.0 1. Time standards 0.0 1.a. Are there laws setting overall time standards for key court events in a civil case? Yes 1.b. If yes, are the time standards set for at least three court events? No 1.c. Are these time standards respected in more than 50% of cases? Yes 2. Adjournments 0.0 2.a. Does the law regulate the maximum number of adjournments that can be No granted? 2.b. Are adjournments limited to unforeseen and exceptional circumstances? No 2.c. If rules on adjournments exist, are they respected in more than 50% of cases? n.a. 3. Can two of the following four reports be generated about the competent court: (i) Yes 1.0 time to disposition report; (ii) clearance rate report; (iii) age of pending cases report; and (iv) single case progress report? 4. Is a pretrial conference among the case management techniques used before the Yes 1.0 competent court? 5. Are there any electronic case management tools in place within the competent court Yes 1.0 for use by judges? 6. Are there any electronic case management tools in place within the competent court Yes 1.0 for use by lawyers? Court automation (0-4) 0.0 1. Can the initial complaint be led electronically through a dedicated platform within No 0.0 the competent court? 2. Is it possible to carry out service of process electronically for claims led before the No 0.0 competent court? Page 96   1. Can the initial complaint be led electronically through a dedicated platform within No 0.0 Businesscourt? the competent Doing 2018 Russian Federation 2. Is it possible to carry out service of process electronically for claims led before the No 0.0 competent court? 3. Can court fees be paid electronically within the competent court? No 0.0 4. Publication of judgments 0.0 4.a Are judgments rendered in commercial cases at all levels made available to the No general public through publication in o cial gazettes, in newspapers or on the internet or court website? 4.b. Are judgments rendered in commercial cases at the appellate and supreme No court level made available to the general public through publication in o cial gazettes, in newspapers or on the internet or court website? Alternative dispute resolution (0-3) 2.5 1. Arbitration 1.0 1.a. Is domestic commercial arbitration governed by a consolidated law or Yes consolidated chapter or section of the applicable code of civil procedure encompassing substantially all its aspects? 1.b. Are there any commercial disputes—aside from those that deal with public Yes order or public policy—that cannot be submitted to arbitration? 1.c. Are valid arbitration clauses or agreements usually enforced by the courts? Yes 2. Mediation/Conciliation 1.5 2.a. Is voluntary mediation or conciliation available? Yes 2.b. Are mediation, conciliation or both governed by a consolidated law or Yes consolidated chapter or section of the applicable code of civil procedure encompassing substantially all their aspects? 2.c. Are there nancial incentives for parties to attempt mediation or conciliation (i.e., Yes if mediation or conciliation is successful, a refund of court ling fees, income tax credits or the like)? Resolving Insolvency Doing Business studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are used to calculate the recovery rate, which is recorded as cents on the dollar recovered by secured creditors through reorganization, liquidation or debt enforcement (foreclosure or receivership) proceedings. To determine the present value of the amount recovered by creditors, Doing Business uses the lending rates from the International Monetary Fund, supplemented with data from central banks and the Economist Intelligence Unit. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to recover debt (years) To make the data on the time, cost and outcome comparable across economies, several assumptions about the business and the case are Measured in calendar years used: Appeals and requests for extension are included - A hotel located in the largest city (or cities) has 201 employees and 50 Cost required to recover debt (% of debtor’s estate) suppliers. The hotel experiences nancial di culties. Page 97   Measured as percentage of estate value - The value of the hotel is 100% of the income per capita or the equivalent if mediation or conciliation is successful, a refund of court ling fees, income tax credits or the like)? Doing Business 2018 Russian Federation Resolving Insolvency Doing Business studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are used to calculate the recovery rate, which is recorded as cents on the dollar recovered by secured creditors through reorganization, liquidation or debt enforcement (foreclosure or receivership) proceedings. To determine the present value of the amount recovered by creditors, Doing Business uses the lending rates from the International Monetary Fund, supplemented with data from central banks and the Economist Intelligence Unit. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to recover debt (years) To make the data on the time, cost and outcome comparable across economies, several assumptions about the business and the case are Measured in calendar years used: Appeals and requests for extension are included - A hotel located in the largest city (or cities) has 201 employees and 50 Cost required to recover debt (% of debtor’s estate) suppliers. The hotel experiences nancial di culties. Measured as percentage of estate value - The value of the hotel is 100% of the income per capita or the equivalent Court fees in local currency of USD 200,000, whichever is greater. - The hotel has a loan from a domestic bank, secured by a mortgage over Fees of insolvency administrators the hotel’s real estate. The hotel cannot pay back the loan, but makes Lawyers’ fees enough money to operate otherwise. Assessors’ and auctioneers’ fees In addition, Doing Business evaluates the adequacy and integrity of the Other related fees existing legal framework applicable to liquidation and reorganization Outcome proceedings through the strength of insolvency framework index. The index tests whether economies adopted internationally accepted good Whether business continues operating as a going practices in four areas: commencement of proceedings, management of concern or business assets are sold piecemeal debtor’s assets, reorganization proceedings and creditor participation. Recovery rate for creditors Measures the cents on the dollar recovered by secured creditors Outcome for the business (survival or not) determines the maximum value that can be recovered Official costs of the insolvency proceedings are deducted Depreciation of furniture is taken into account Present value of debt recovered Strength of insolvency framework index (0- 16) Sum of the scores of four component indices: Commencement of proceedings index (0-3) Management of debtor’s assets index (0-6) Reorganization proceedings index (0-3) Creditor participation index (0-4) Resolving Insolvency - Moscow Europe & OECD high Indicator Moscow Central Asia income Overall Best Performer Recovery rate (cents on the dollar) 40.2 38.0 71.2 93.1 (Norway) Page 98   Creditor participation index (0-4) Doing Business 2018 Russian Federation Resolving Insolvency - Moscow Europe & OECD high Indicator Moscow Central Asia income Overall Best Performer Recovery rate (cents on the dollar) 40.2 38.0 71.2 93.1 (Norway) Time (years) 2.0 2.3 1.7 0.4 (Ireland) Cost (% of estate) 9.0 13.1 9.1 1.00 (Norway) Outcome (0 as piecemeal sale and 1 as going 0 .. .. .. concern) Strength of insolvency framework index (0-16) 11.5 10.8 12.1 15.00 (6 Economies) Figure – Resolving Insolvency in Russia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 72.31: Mexico (Rank: 31) 57.59: Moscow 55.82: China (Rank: 56) 47.46: Brazil (Rank: 80) Note: The ranking of economies on the ease of resolving insolvency is determined by sorting their distance to frontier scores for resolving insolvency. These scores are the simple average of the distance to frontier scores for the recovery rate and the strength of insolvency framework index. Figure – Resolving Insolvency in Moscow – Time and Cost Time Cost 4.5 25 4.0 22.0 4 3.5 18.0 20 Cost (% of estate) Time (years) 3 2.3 13.1 15 2.5 12.0 2.0 2 1.7 1.8 1.7 9.0 9.1 10 1.5 1 5 0.5 0 0 Brazil China Europe & Mexico Moscow OECD high income Central Asia Figure – Resolving Insolvency in Moscow and comparator economies – Measure of Quality Page 99   Moscow 5 2.5 3 1 Brazil China Europe & Mexico Moscow OECD high income Central Asia Doing Business 2018 Russian Federation Figure – Resolving Insolvency in Moscow and comparator economies – Measure of Quality Moscow 5 2.5 3 1 Brazil 5.5 2.5 3 2 China 5 3 1 2.5 Mexico 5.5 2.5 2 1.5 OECD high income 5.4 2.8 2.3 1.9 Europe & Central Asia 4.4 2.6 2.1 1.8 0 2 4 6 8 10 12 14 Sub-Indicator Score Management of debtor's assets index (0­6) Commencement of proceedings index (0­3) Creditor participation index (0­4) Reorganization proceedings index (0­3) Figure – Resolving Insolvency in Moscow and comparator economies – Recovery Rate Recovery Rate (cents on the dollar) 80 67.6 70 60 50 40.2 38.0 40 36.9 30 20 12.7 10 0 Moscow Brazil China Mexico Europe & Central Asia Details – Resolving Insolvency in Moscow Indicator Answer Explanation Proceeding liquidation In accordance with Art. 9 of the Law on Insolvency (Bankruptcy), the management of Mirage must petition the court to declare the company bankrupt within 1 month of failing to pay the Bank’s claims. The court will institute a supervisory procedure and will appoint a temporary administrator. Temporary administrator will convene the first creditors’ meeting, where the creditors will decide whether to petition the court for liquidation or reorganization. Under the case study assumptions, creditors, most likely, will choose the liquidation procedure, because it is not likely that other procedures can lead to restoration of the debtor’s solvency. On the contrary, in liquidation, the bank can partially satisfy its claims. Outcome piecemeal sale Despite the fact that the value of the business will be higher if it is sold as a going concern, it will be difficult to find a buyer willing to purchase all the assets as a whole. Time (in years) 2.0 In accordance with Article 51 of the Law on Insolvency (Bankruptcy), a bankruptcy casePage 100   must Moscow Brazil China Mexico Europe & Central Asia Doing Business 2018 Russian Federation Details – Resolving Insolvency in Moscow Indicator Answer Explanation Proceeding liquidation In accordance with Art. 9 of the Law on Insolvency (Bankruptcy), the management of Mirage must petition the court to declare the company bankrupt within 1 month of failing to pay the Bank’s claims. The court will institute a supervisory procedure and will appoint a temporary administrator. Temporary administrator will convene the first creditors’ meeting, where the creditors will decide whether to petition the court for liquidation or reorganization. Under the case study assumptions, creditors, most likely, will choose the liquidation procedure, because it is not likely that other procedures can lead to restoration of the debtor’s solvency. On the contrary, in liquidation, the bank can partially satisfy its claims. Outcome piecemeal sale Despite the fact that the value of the business will be higher if it is sold as a going concern, it will be difficult to find a buyer willing to purchase all the assets as a whole. Time (in years) 2.0 In accordance with Article 51 of the Law on Insolvency (Bankruptcy), a bankruptcy case must be considered within 7 months of the day the petition was received by the arbitrazh court. Liquidation proceedings by law are limited to 6 months and can be extended by 6 more months (art. 124 of the Law on Insolvency (Bankruptcy)). Therefore, the time dictated by law is 19 months. However, in practice, liquidation proceedings are extended several times and for longer periods. One reason for extension, for example, is that not all mechanisms were used to collect on the debt, and court decisions on this issue become effective only after appeals. Additionally, time is needed to execute judicial acts. Cost (% of 9.0 The total cost of the insolvency proceedings will be around 9% of the value of the estate. The estate) main expenses will include: attorneys' fees - around 2.5%, fees of the insolvency representative - around 4.5%, fees of accountants and other experts - around 1.5%, auctioneer's fees - no more than 1%, and other fees (court fees, mailing fees, etc.) - 0.1%. Recovery rate (cents on the 40.2 dollar) Details – Resolving Insolvency in Moscow – Measure of Quality Answer Score Strength of insolvency framework index (0-16) 11.5 Commencement of proceedings index (0-3) 2.5 What procedures are available to a DEBTOR when commencing insolvency (a) Debtor may 1.0 proceedings? le for both liquidation and reorganization Does the insolvency framework allow a CREDITOR to le for insolvency of the debtor? (b) Yes, but a 0.5 creditor may le for liquidation only What basis for commencement of the insolvency proceedings is allowed under the (c) Both (a) and 1.0 insolvency framework? (b) options are available, but only one of them needs to be Page 101   complied with dollar) Doing Business 2018 Russian Federation Details – Resolving Insolvency in Moscow – Measure of Quality Answer Score Strength of insolvency framework index (0-16) 11.5 Commencement of proceedings index (0-3) 2.5 What procedures are available to a DEBTOR when commencing insolvency (a) Debtor may 1.0 proceedings? le for both liquidation and reorganization Does the insolvency framework allow a CREDITOR to le for insolvency of the debtor? (b) Yes, but a 0.5 creditor may le for liquidation only What basis for commencement of the insolvency proceedings is allowed under the (c) Both (a) and 1.0 insolvency framework? (b) options are available, but only one of them needs to be complied with Management of debtor's assets index (0-6) 5.0 Does the insolvency framework allow the continuation of contracts supplying essential No 0.0 goods and services to the debtor? Does the insolvency framework allow the rejection by the debtor of overly burdensome Yes 1.0 contracts? Does the insolvency framework allow avoidance of preferential transactions? Yes 1.0 Does the insolvency framework allow avoidance of undervalued transactions? Yes 1.0 Does the insolvency framework provide for the possibility of the debtor obtaining credit Yes 1.0 after commencement of insolvency proceedings? Does the insolvency framework assign priority to post-commencement credit? (b) Yes over 1.0 ordinary unsecured creditors but not over secured creditors Reorganization proceedings index (0-3) 1.0 Which creditors vote on the proposed reorganization plan? (b) Only creditors 1.0 whose rights are a ected by the proposed plan Does the insolvency framework require that dissenting creditors in reorganization No 0.0 receive at least as much as what they would obtain in a liquidation? Are the creditors devided into classes for the purposes of voting on the reorganization No 0.0 plan, does each class vote separately and are creditors in the same class treated Page 102   equally? Does the insolvency framework require that dissenting creditors in reorganization No 0.0 receive Doing at least as Business much as 2018 what they Russian would obtain in a liquidation? Federation Are the creditors devided into classes for the purposes of voting on the reorganization No 0.0 plan, does each class vote separately and are creditors in the same class treated equally? Creditor participation index (0-4) 3.0 Does the insolvency framework require approval by the creditors for selection or Yes 1.0 appointment of the insolvency representative? Does the insolvency framework require approval by the creditors for sale of substantial Yes 1.0 assets of the debtor? Does the insolvency framework provide that a creditor has the right to request No 0.0 information from the insolvency representative? Does the insolvency framework provide that a creditor has the right to object to Yes 1.0 decisions accepting or rejecting creditors' claims? Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice”. Resolving Insolvency - Saint Petersburg Saint Europe & OECD high Indicator Petersburg Central Asia income Overall Best Performer Recovery rate (cents on the dollar) 41.7 38.0 71.2 93.1 (Norway) Time (years) 1.8 2.3 1.7 0.4 (Ireland) Cost (% of estate) 9.0 13.1 9.1 1.00 (Norway) Outcome (0 as piecemeal sale and 1 as going 0 .. .. .. concern) Strength of insolvency framework index (0-16) 11.5 10.8 12.1 15.00 (6 Economies) Figure – Resolving Insolvency in Russia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 72.31: Mexico (Rank: 31) 58.38: Saint Petersburg 55.82: China (Rank: 56) 47.46: Brazil (Rank: 80) Note: The ranking of economies on the ease of resolving insolvency is determined by sorting their distance to frontier scores for resolving insolvency. These scores are the simple average of the distance to frontier scores for the recovery rate and the strength of insolvency framework index. Page 103   the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice”. Doing Business 2018 Russian Federation Resolving Insolvency - Saint Petersburg Saint Europe & OECD high Indicator Petersburg Central Asia income Overall Best Performer Recovery rate (cents on the dollar) 41.7 38.0 71.2 93.1 (Norway) Time (years) 1.8 2.3 1.7 0.4 (Ireland) Cost (% of estate) 9.0 13.1 9.1 1.00 (Norway) Outcome (0 as piecemeal sale and 1 as going 0 .. .. .. concern) Strength of insolvency framework index (0-16) 11.5 10.8 12.1 15.00 (6 Economies) Figure – Resolving Insolvency in Russia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 72.31: Mexico (Rank: 31) 58.38: Saint Petersburg 55.82: China (Rank: 56) 47.46: Brazil (Rank: 80) Note: The ranking of economies on the ease of resolving insolvency is determined by sorting their distance to frontier scores for resolving insolvency. These scores are the simple average of the distance to frontier scores for the recovery rate and the strength of insolvency framework index. Figure – Resolving Insolvency in Saint Petersburg – Time and Cost Time Cost 4.5 25 4.0 22.0 4 3.5 18.0 20 Cost (% of estate) Time (years) 3 2.3 13.1 15 2.5 12.0 2 1.7 1.8 1.7 1.8 9.1 9.0 10 1.5 1 5 0.5 0 0 Brazil China Europe & Mexico OECD high income Saint Petersburg Central Asia Figure – Resolving Insolvency in Saint Petersburg and comparator economies – Measure of Quality Page 104   Brazil China Europe & Mexico OECD high income Saint Petersburg Central Asia Doing Business 2018 Russian Federation Figure – Resolving Insolvency in Saint Petersburg and comparator economies – Measure of Quality Saint Petersburg 5 2.5 3 1 Brazil 5.5 2.5 3 2 China 5 3 1 2.5 Mexico 5.5 2.5 2 1.5 OECD high income 5.4 2.8 2.3 1.9 Europe & Central Asia 4.4 2.6 2.1 1.8 0 2 4 6 8 10 12 14 Sub-Indicator Score Management of debtor's assets index (0­6) Commencement of proceedings index (0­3) Creditor participation index (0­4) Reorganization proceedings index (0­3) Figure – Resolving Insolvency in Saint Petersburg and comparator economies – Recovery Rate Recovery Rate (cents on the dollar) 80 67.6 70 60 50 41.7 36.9 38.0 40 30 20 12.7 10 0 Saint Petersburg Brazil China Mexico Europe & Central Asia Details – Resolving Insolvency in Saint Petersburg Indicator Answer Explanation Proceeding liquidation In accordance with Art. 9 of the Law on Insolvency (Bankruptcy), the management of Mirage must petition the court to declare the company bankrupt within 1 month of failing to pay the Bank’s claims. The court will institute a supervisory procedure and will appoint a temporary administrator. Temporary administrator will convene the first creditors’ meeting, where the creditors will decide whether to petition the court for liquidation or reorganization. Under the case study assumptions, creditors, most likely, will choose the liquidation procedure, because it is not likely that other procedures can lead to restoration of the debtor’s solvency. On the contrary, in liquidation, the bank can partially satisfy its claims. Outcome piecemeal sale Despite the fact that the value of the business will be higher if it is sold as a going concern, it will be difficult to find a buyer willing to purchase all the assets as a whole. Time (in years) 1.8 In accordance with Article 51 of the Law on Insolvency (Bankruptcy), a bankruptcy casePage 105   must Saint Petersburg Brazil China Mexico Europe & Central Asia Doing Business 2018 Russian Federation Details – Resolving Insolvency in Saint Petersburg Indicator Answer Explanation Proceeding liquidation In accordance with Art. 9 of the Law on Insolvency (Bankruptcy), the management of Mirage must petition the court to declare the company bankrupt within 1 month of failing to pay the Bank’s claims. The court will institute a supervisory procedure and will appoint a temporary administrator. Temporary administrator will convene the first creditors’ meeting, where the creditors will decide whether to petition the court for liquidation or reorganization. Under the case study assumptions, creditors, most likely, will choose the liquidation procedure, because it is not likely that other procedures can lead to restoration of the debtor’s solvency. On the contrary, in liquidation, the bank can partially satisfy its claims. Outcome piecemeal sale Despite the fact that the value of the business will be higher if it is sold as a going concern, it will be difficult to find a buyer willing to purchase all the assets as a whole. Time (in years) 1.8 In accordance with Article 51 of the Law on Insolvency (Bankruptcy), a bankruptcy case must be considered within 7 months of the day the petition was received by the arbitrazh court. Liquidation proceedings by law are limited to 6 months and can be extended by 6 more months (art. 124 of the Law on Insolvency (Bankruptcy)). Therefore, the time dictated by law is 19 months. However, in practice, liquidation proceedings are extended more than once and for longer periods. One reason for extension, for example, is that not all mechanisms were used to collect on the debt, and court decisions on this issue become effective only after appeals. Additionally, time is needed to execute judicial acts. Cost (% of 9.0 The total cost of the insolvency proceedings will be around 9% of the value of the estate. The estate) main expenses will include: attorneys' fees - around 2.25%, fees of the insolvency representative - around 4.5%, fees of accountants and other experts - around 2%, auctioneer's fees - no more than 0.5%, and other fees (court fees, mailing fees, etc.) - 0.1%. Recovery rate (cents on the 41.7 dollar) Details – Resolving Insolvency in Saint Petersburg – Measure of Quality Answer Score Strength of insolvency framework index (0-16) 11.5 Commencement of proceedings index (0-3) 2.5 What procedures are available to a DEBTOR when commencing insolvency (a) Debtor may 1.0 proceedings? le for both liquidation and reorganization Does the insolvency framework allow a CREDITOR to le for insolvency of the debtor? (b) Yes, but a 0.5 creditor may le for liquidation only What basis for commencement of the insolvency proceedings is allowed under the (c) Both (a) and 1.0 insolvency framework? (b) options are available, but only one of them needs to be Page 106   complied with dollar) Doing Business 2018 Russian Federation Details – Resolving Insolvency in Saint Petersburg – Measure of Quality Answer Score Strength of insolvency framework index (0-16) 11.5 Commencement of proceedings index (0-3) 2.5 What procedures are available to a DEBTOR when commencing insolvency (a) Debtor may 1.0 proceedings? le for both liquidation and reorganization Does the insolvency framework allow a CREDITOR to le for insolvency of the debtor? (b) Yes, but a 0.5 creditor may le for liquidation only What basis for commencement of the insolvency proceedings is allowed under the (c) Both (a) and 1.0 insolvency framework? (b) options are available, but only one of them needs to be complied with Management of debtor's assets index (0-6) 5.0 Does the insolvency framework allow the continuation of contracts supplying essential No 0.0 goods and services to the debtor? Does the insolvency framework allow the rejection by the debtor of overly burdensome Yes 1.0 contracts? Does the insolvency framework allow avoidance of preferential transactions? Yes 1.0 Does the insolvency framework allow avoidance of undervalued transactions? Yes 1.0 Does the insolvency framework provide for the possibility of the debtor obtaining credit Yes 1.0 after commencement of insolvency proceedings? Does the insolvency framework assign priority to post-commencement credit? (b) Yes over 1.0 ordinary unsecured creditors but not over secured creditors Reorganization proceedings index (0-3) 1.0 Which creditors vote on the proposed reorganization plan? (b) Only creditors 1.0 whose rights are a ected by the proposed plan Does the insolvency framework require that dissenting creditors in reorganization No 0.0 receive at least as much as what they would obtain in a liquidation? Are the creditors devided into classes for the purposes of voting on the reorganization No 0.0 plan, does each class vote separately and are creditors in the same class treated Page 107   equally? Does the insolvency framework require that dissenting creditors in reorganization No 0.0 receive Doing at least as Business much as 2018 what they Russian would obtain in a liquidation? Federation Are the creditors devided into classes for the purposes of voting on the reorganization No 0.0 plan, does each class vote separately and are creditors in the same class treated equally? Creditor participation index (0-4) 3.0 Does the insolvency framework require approval by the creditors for selection or Yes 1.0 appointment of the insolvency representative? Does the insolvency framework require approval by the creditors for sale of substantial Yes 1.0 assets of the debtor? Does the insolvency framework provide that a creditor has the right to request No 0.0 information from the insolvency representative? Does the insolvency framework provide that a creditor has the right to object to Yes 1.0 decisions accepting or rejecting creditors' claims? Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice”. Labor Market Regulation Doing Business presents the data for the labor market regulation indicators in an annex. The report does not present rankings of economies on these indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business. Detailed data collected on labor market regulation are available on the Doing Business website (http://www.doingbusiness.org/data/exploretopics/labor-market-regulation). The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Hiring To make the data comparable across economies, several assumptions (i) whether xed-term contracts are prohibited for about the worker and the business are used. permanent tasks; (ii) maximum cumulative duration of xed-term contracts; (iii) length of the The worker: probationary period; (iv) minimum wage. - Is a cashier in a supermarket or grocery store, age 19, with one year of work experience. Working hours - Is a full-time employee. (i) maximum number of working days allowed per - Is not a member of the labor union, unless membership is mandatory. week; (ii) premiums for work: at night, on a weekly rest day and overtime; (iii) whether there are The business: restrictions on work at night, work on a weekly rest - Is a limited liability company (or the equivalent in the economy). day and for overtime work; (iv) whether nonpregnant - Operates a supermarket or grocery store in the economy’s largest and nonnursing women can work same night hours business city. For 11 economies the data are also collected for the second as men; (v) length of paid annual leave. largest business city. - Has 60 employees. Redundancy rules - Is subject to collective bargaining agreements if such agreements cover (i) whether redundancy can be basis for terminating more than 50% of the food retail sector and they apply even to rms that workers; (ii) whether employer needs to notify are not party to them. and/or get approval from third party to terminate 1 - Abides by every law and regulation but does not grant workers more redundant worker and a group of 9 redundant bene ts than those mandated by law, regulation or (if applicable) collective workers; (iii) whether law requires employer to bargaining agreements. reassign or retrain a worker before making worker redundant; (iv) whether priority rules apply for redundancies and reemployment. Redundancy cost Page 108   (i) notice period for redundancy dismissal; (ii) the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice”. Doing Business 2018 Russian Federation Labor Market Regulation Doing Business presents the data for the labor market regulation indicators in an annex. The report does not present rankings of economies on these indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business. Detailed data collected on labor market regulation are available on the Doing Business website (http://www.doingbusiness.org/data/exploretopics/labor-market-regulation). The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Hiring To make the data comparable across economies, several assumptions (i) whether xed-term contracts are prohibited for about the worker and the business are used. permanent tasks; (ii) maximum cumulative duration of xed-term contracts; (iii) length of the The worker: probationary period; (iv) minimum wage. - Is a cashier in a supermarket or grocery store, age 19, with one year of work experience. Working hours - Is a full-time employee. (i) maximum number of working days allowed per - Is not a member of the labor union, unless membership is mandatory. week; (ii) premiums for work: at night, on a weekly rest day and overtime; (iii) whether there are The business: restrictions on work at night, work on a weekly rest - Is a limited liability company (or the equivalent in the economy). day and for overtime work; (iv) whether nonpregnant - Operates a supermarket or grocery store in the economy’s largest and nonnursing women can work same night hours business city. For 11 economies the data are also collected for the second as men; (v) length of paid annual leave. largest business city. - Has 60 employees. Redundancy rules - Is subject to collective bargaining agreements if such agreements cover (i) whether redundancy can be basis for terminating more than 50% of the food retail sector and they apply even to rms that workers; (ii) whether employer needs to notify are not party to them. and/or get approval from third party to terminate 1 - Abides by every law and regulation but does not grant workers more redundant worker and a group of 9 redundant bene ts than those mandated by law, regulation or (if applicable) collective workers; (iii) whether law requires employer to bargaining agreements. reassign or retrain a worker before making worker redundant; (iv) whether priority rules apply for redundancies and reemployment. Redundancy cost (i) notice period for redundancy dismissal; (ii) severance payments due when terminating a redundant worker. Job quality (i) whether law mandates equal remuneration for work of equal value and nondiscrimination based on gender in hiring; (ii) whether law mandates paid or unpaid maternity leave; (iii) length of paid maternity leave; (iv) whether employees on maternity leave receive 100% of wages; (v) availability of ve fully paid days of sick leave a year; (vi) eligibility requirements for unemployment protection. Labor Market Regulation - Moscow Details – Labor Market Regulation in Moscow Answer Page 109   days of sick leave a year; (vi) eligibility requirements for unemployment protection. Doing Business 2018 Russian Federation Labor Market Regulation - Moscow Details – Labor Market Regulation in Moscow Answer Hiring Fixed-term contracts prohibited for permanent tasks? Yes Maximum length of a single xed-term contract (months) 60.0 Maximum length of xed-term contracts, including renewals (months) 60.0 Minimum wage applicable to the worker assumed in the case study (US$/month) 299.0 Ratio of minimum wage to value added per worker 0.3 Maximum length of probationary period (months) 3.0 Working hours Standard workday 8.0 Maximum number of working days per week 6.0 Premium for night work (% of hourly pay) 20.0 Premium for work on weekly rest day (% of hourly pay) 100.0 Premium for overtime work (% of hourly pay) 50.0 Restrictions on night work? No Whether nonpregnant and nonnursing women can work the same night hours as men Yes Restrictions on weekly holiday? Yes Restrictions on overtime work? No Paid annual leave for a worker with 1 year of tenure (working days) 22.0 Paid annual leave for a worker with 5 years of tenure (working days) 22.0 Paid annual leave for a worker with 10 years of tenure (working days) 22.0 Paid annual leave (average for workers with 1, 5 and 10 years of tenure, in working days) 22.0 Redundancy rules Dismissal due to redundancy allowed by law? Yes Third-party noti cation if one worker is dismissed? Yes Third-party approval if one worker is dismissed? No Third-party noti cation if nine workers are dismissed? Yes Third-party approval if nine workers are dismissed? No Page 110   Third-party Doing cation if Russian noti 2018 Business nine workers are dismissed? Federation Yes Third-party approval if nine workers are dismissed? No Retraining or reassignment obligation before redundancy? Yes Priority rules for redundancies? Yes Priority rules for reemployment? No Redundancy cost Notice period for redundancy dismissal for a worker with 1 year of tenure 8.7 Notice period for redundancy dismissal for a worker with 5 years of tenure 8.7 Notice period for redundancy dismissal for a worker with 10 years of tenure 8.7 Notice period for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 8.7 Severance pay for redundancy dismissal for a worker with 1 year of tenure 8.7 Severance pay for redundancy dismissal for a worker with 5 years of tenure 8.7 Severance pay for redundancy dismissal for a worker with 10 years of tenure 8.7 Severance pay for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 8.7 Job quality Equal remuneration for work of equal value? No Gender nondiscrimination in hiring? Yes Paid or unpaid maternity leave mandated by law? Yes Minimum length of maternity leave (calendar days)? 140.0 Receive 100% of wages on maternity leave? Yes Five fully paid days of sick leave a year? Yes Unemployment protection after one year of employment? Yes Minimum contribution period for unemployment protection (months)? 0.0 Labor Market Regulation - Saint Petersburg Details – Labor Market Regulation in Saint Petersburg Answer Hiring Fixed-term contracts prohibited for permanent tasks? Yes Maximum length of a single xed-term contract (months) 60.0 Maximum length of xed-term contracts, including renewals (months) 60.0 Page 111   Minimum wage applicable to the worker assumed in the case study (US$/month) 272.5 Minimum contribution period for unemployment protection (months)? 0.0 Doing Business 2018 Russian Federation Labor Market Regulation - Saint Petersburg Details – Labor Market Regulation in Saint Petersburg Answer Hiring Fixed-term contracts prohibited for permanent tasks? Yes Maximum length of a single xed-term contract (months) 60.0 Maximum length of xed-term contracts, including renewals (months) 60.0 Minimum wage applicable to the worker assumed in the case study (US$/month) 272.5 Ratio of minimum wage to value added per worker 0.2 Maximum length of probationary period (months) 3.0 Working hours Standard workday 8.0 Maximum number of working days per week 6.0 Premium for night work (% of hourly pay) 20.0 Premium for work on weekly rest day (% of hourly pay) 100.0 Premium for overtime work (% of hourly pay) 50.0 Restrictions on night work? No Whether nonpregnant and nonnursing women can work the same night hours as men Yes Restrictions on weekly holiday? Yes Restrictions on overtime work? No Paid annual leave for a worker with 1 year of tenure (working days) 22.0 Paid annual leave for a worker with 5 years of tenure (working days) 22.0 Paid annual leave for a worker with 10 years of tenure (working days) 22.0 Paid annual leave (average for workers with 1, 5 and 10 years of tenure, in working days) 22.0 Redundancy rules Dismissal due to redundancy allowed by law? Yes Third-party noti cation if one worker is dismissed? Yes Third-party approval if one worker is dismissed? No Third-party noti cation if nine workers are dismissed? Yes Third-party approval if nine workers are dismissed? No Page 112   Third-party Doing cation if Russian noti 2018 Business nine workers are dismissed? Federation Yes Third-party approval if nine workers are dismissed? No Retraining or reassignment obligation before redundancy? Yes Priority rules for redundancies? Yes Priority rules for reemployment? No Redundancy cost Notice period for redundancy dismissal for a worker with 1 year of tenure 8.7 Notice period for redundancy dismissal for a worker with 5 years of tenure 8.7 Notice period for redundancy dismissal for a worker with 10 years of tenure 8.7 Notice period for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 8.7 Severance pay for redundancy dismissal for a worker with 1 year of tenure 8.7 Severance pay for redundancy dismissal for a worker with 5 years of tenure 8.7 Severance pay for redundancy dismissal for a worker with 10 years of tenure 8.7 Severance pay for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 8.7 Job quality Equal remuneration for work of equal value? No Gender nondiscrimination in hiring? Yes Paid or unpaid maternity leave mandated by law? Yes Minimum length of maternity leave (calendar days)? 140.0 Receive 100% of wages on maternity leave? Yes Five fully paid days of sick leave a year? Yes Unemployment protection after one year of employment? Yes Minimum contribution period for unemployment protection (months)? 0.0 Business Reforms in Russia In the year ending June 1, 2017, 119 economies implemented 264 total reforms across the di erent areas measured by Doing Business. Doing Business has recorded more than 2,900 regulatory reforms making it easier to do business since 2004. Reforms inspired by Doing Business have been implemented by economies in all regions. The following are the reforms for Russia implemented since Doing Business 2008. = Doing Business reform making it easier to do business. = Change making it more di cult to do business. DB2018 Registering Property: The Russian Federation made it easier to transfer property by decreasing the time necessary to apply for state registration of title transfer. This reform applies to both Moscow and Saint Petersburg Getting Credit: Russia improved access to credit by adopting a new law that establishes a modern collateral registry. This reform applies to both Moscow and St. Petersburg. Page 113   Trading across Borders: Russia made exporting and importing easier by opening a new deep water port on the coast of the Gulf Minimum contribution period for unemployment protection (months)? 0.0 Doing Business 2018 Russian Federation Business Reforms in Russia In the year ending June 1, 2017, 119 economies implemented 264 total reforms across the di erent areas measured by Doing Business. Doing Business has recorded more than 2,900 regulatory reforms making it easier to do business since 2004. Reforms inspired by Doing Business have been implemented by economies in all regions. The following are the reforms for Russia implemented since Doing Business 2008. = Doing Business reform making it easier to do business. = Change making it more di cult to do business. DB2018 Registering Property: The Russian Federation made it easier to transfer property by decreasing the time necessary to apply for state registration of title transfer. This reform applies to both Moscow and Saint Petersburg Getting Credit: Russia improved access to credit by adopting a new law that establishes a modern collateral registry. This reform applies to both Moscow and St. Petersburg. Trading across Borders: Russia made exporting and importing easier by opening a new deep water port on the coast of the Gulf of Finland, increasing competition and reducing the cost of border compliance at the Port of St. Petersburg. This reform applies to both Moscow and St. Petersburg. DB2017 Dealing with Construction Permits: Russian Federation Saint Petersburg made dealing with construction permits easier by removing the requirement to obtain permission to fence the construction site. Protecting Minority Investors: The Russian Federation strengthened minority investor protections by increasing shareholder rights and role in major corporate decisions. Enforcing Contracts: The Russian Federation made enforcing contracts more di cult by mandating pre-trial resolution before ling a claim, thereby lengthening the initial phase of judicial proceedings. This reform applies to both Moscow and St. Petersburg. DB2016 Starting a Business: The Russian Federation made starting a business in Moscow easier by reducing the number of days required to open a corporate bank account. Getting Electricity: Russia made the process of obtaining an electricity connection simpler, faster and less costly by eliminating a meter inspection by electricity providers and revising connection tari s. This reform applies to both Moscow and St. Petersburg. Registering Property: Russia made transferring property easier by reducing the time required for property registration. This reform applies to both Moscow and St. Petersburg. Getting Credit: Russia improved access to credit by adopting a new law on secured transactions that established a centralized collateral registry and allows a general description of a combined category of assets granted as collateral. This reform applies to both Moscow and St. Petersburg. Paying Taxes: Russia made paying taxes less costly for companies by excluding movable property from the corporate property tax base—though it also raised the wage ceiling used in calculating social contributions. These changes apply to both Moscow and St. Petersburg. In addition, the cadastral value of land in Moscow was updated. DB2015 Starting a Business: The Russian Federation made starting a business easier by eliminating the requirement to deposit the charter capital before company registration as well as the requirement to notify tax authorities of the opening of a bank account. This reform applies to both Moscow and St. Petersburg. Registering Property: The Russian Federation made transferring property easier by eliminating the requirement for notarization and introducing tighter time limits for completing the property registration. This reform applies to both Moscow and St. Petersburg. DB2014 Starting a Business: Russia made starting a business easier by abolishing the requirement to have the bank signature card notarized before opening a company bank account. Page 114   Dealing with Construction Permits: Russia made dealing with construction permits easier by eliminating several requirements DB2014 Doing Business Starting 2018 a Business: Russian Russia Federation made starting a business easier by abolishing the requirement to have the bank signature card notarized before opening a company bank account. Dealing with Construction Permits: Russia made dealing with construction permits easier by eliminating several requirements for project approvals from government agencies and by reducing the time required to register a new building. Getting Electricity: Russia made getting electricity simpler and less costly by setting standard connection tari s and eliminating many procedures previously required. Registering Property: Russia made transferring property easier by streamlining procedures and implementing e ective time limits for processing transfer applications. Trading across Borders: Russia made trading across borders easier by implementing an electronic system for submitting export and import documents and by reducing the number of physical inspections. DB2013 Dealing with Construction Permits: Russia made obtaining a construction permit simpler by eliminating requirements for several preconstruction approvals. Paying Taxes: Russia eased the administrative burden of taxes for rms by simplifying compliance procedures for value added tax and by promoting the use of tax accounting software and electronic services. DB2012 Getting Electricity: Russian Federation made getting electricity less costly by revising the tari s for connection. Registering Property: Russia made registering property transfers easier by eliminating the requirement to obtain cadastral passports on land plots. Paying Taxes: Russia increased the social security contribution rate for employers. Trading across Borders: Russia made trading across borders easier by reducing the number of documents needed for each export or import transaction and lowering the associated cost. Enforcing Contracts: Russia made ling a commercial case easier by introducing an electronic case ling system. DB2011 Dealing with Construction Permits: Russia eased construction permitting by implementing a single window for all procedures related to land use. Resolving Insolvency: Russia introduced a series of legislative measures in 2009 to improve creditor rights and the insolvency system. DB2010 Registering Property: Russia reduced the time required to register property by introducing cadastral passports in place of the previously required inventory documents and cadastral maps. Paying Taxes: Russia made paying taxes less costly for companies by reducing the corporate income tax rate. Resolving Insolvency: Russia enhanced its insolvency process by introducing several changes to its insolvency law to speed up the liquidation procedure and strengthen the legal status of secured creditors. DB2008 Dealing with Construction Permits: Russia made dealing with construction permits more expensive by increasing the cost— though at the same time it implemented several laws reducing the time and number of procedures required. The Russian Federation made dealing with construction permits more expensive by increasing the cost, and at the same time implemented several laws that reduces steps and time to obtain a construction permit. Getting Credit: In Russia access to credit information was improved by the launch of a private credit bureau, the National Bureau of Credit Histories (NBKI), and by a requirement that banks submit credit data to the credit bureau. Page 115   Getting Credit: In Russia access to credit information was improved by the launch of a private credit bureau, the National Bureau of Histories (NBKI), CreditBusiness Doing 2018 and by a requirement Russian that banks submit credit data to the credit bureau. Federation Page 116