Experts of the Fund RC-Investments that was established by the Roscongress Foundation have prepared the «Business Support Measures and Practical Recommendations for Companies during the Pandemic» report. This document provides projections of the coronavirus’s impact on the state of economy in Russia as well as across the globe, and includes useful guidelines for overcoming the crisis.
The ongoing COVID-19 pandemic has become a global challenge for the healthcare system, as well as citizens and Government of the Russian Federation. It also severely impacted the country’s economy. Central Bank of the Russian Federation anticipates that GDP in our country might drop as much as by 6%.
The authors of the research identify the key pool of challenges that businesses have to face amid the coronavirus outbreak, such as: shrinking revenues and growing customers’ nonconfidence; risk of employees to get infected; disruptions in supply chain; difficulties while interacting within the companies, as well as with clients and partners due to the remote work setup. Uncertainty is increasing that requires fast decision-making.
In the context of the economic situation, the Government of the Russian Federation is taking a wide range of measures aimed to reduce the potential negative impact of the pandemic. For the sake of convenience, all support measures are distributed depending on the type of enterprises and their industry affiliation. The most severely affected sectors of the economy receive special attention.
The companies can take advantage of fiscal loosening, state-backed loans, deferred rental payment for commercial real estate, support measures in the field of logistics and customs services and etc. Special measures are put in place to support the SMEs. The Ministry of Economic Development of the Russian Federation via its official website has launched a new service for publishing infographics and analytical materials featuring a list of systemically critical organizations of the Russian economy that can also count on the state support.
However, it is not possible to overcome the crisis relying solely on support from the government. Companies have to independently adjust their operational and strategic priorities, as well as put in place fast decision-making by the top-management teams. It is necessary to create a crisis management team, set up a seamless supply chain operation, organize monitoring of the state support measures and ensure safety of the employees.
To this end the report features the operational checklists, separately for each economy sector, embracing the entire range from retail and consumer goods manufacturing to the construction and aerospace industry.
When switching the employees from a remote work setup mode, it is required to rely on the best practices, namely, to bring the teams back in several waves. Besides, it is possible to reduce the risk of getting infected via streamlining of the workspace (warning signs, avoidance of small size meeting rooms, distancing and use of antiseptics) along with implementation of safety rules and procedures (wearing face masks, making regular tests and frequent disinfection of premises).
In addition, the report emphasizes that in the medium term it will be required to adapt the corporate culture and strategy to the new business reality.
The complete report as well as other research materials on possible ways to stabilize the economy under the pandemic are available in special sections of Roscongress info-analytic resources, such as StayHomeEconomy, Entrepreneurship and SMEs.
Both institutions, the Roscongress Foundation and the Fund RC-Investment are also implementing a special project aiming to attract more investments in the subordinate entities of the Russian Federation. The investinregions.ru investment platform of the Russian Federation regions acts as a unique information space and communication environment that combines interests of the regions, project initiators as well as investors.