According to the data of the Federal Tax Service over the past year 2013, the amount of insolvent legal persons and individual entrepreneurs reduced by 4% in comparison with the year 2012 and made 11,3 thousands bankruptcies.

Total in 2013 there were registered about 540 000 legal entities in Russia, that is by 23% more, than in 2012. By that the amount of registered commercial organizations was approximately 500 000, increased by 24%. Along with that, the amount of registered individual entrepreneurs (IE) and farm enterprises for the similar period decreased by 18% and made only 472 000.

At the present time almost 40% of legal persons register in Central Federal District (approximately 200 000 enterprises), Volga and Northwestern Federal Districts are also among popular regions for business dealing.

Amount of registered legal entities in 2013, on federal districts, %

Together with the reduction of the amount of registered individual entrepreneurs and farmers, it is observed the increase by 37% of the amount of IE and farm enterprises, went out of their business, at year-end 2013. By that the share of entrepreneurs is 97% or 933 000, 1,5 thousands among them went out of business because of bankruptcy, that is by 4,3% less, than in 2012. At the present time the leading region on the amount of insolvent businessmen is Volga Federal District, approximately 30% of bankruptcies of IE are registered here.

The major part of individual entrepreneurs (98%) went out of business on own motion. The experts associate similar results with the abolishment of the reduced rate of insurance payments.

Relating to legal entities it is observed the contrary trend – the reduction of the amount of organizations now defunct. So that, a bit above 460 000 companies folded their operations in 2013, that is by 18% less, than in 2012. By that it is observed the increase of liquidations of enterprises by the decision of their members (by 4%) and the reduction of cases of termination of the activity due to reorganization and bankruptcy - by 1,3% and 4,6% respectively.

The overwhelming majority of bankruptcies falls traditionally on limited liability companies and superadded liability companies (LLC and SLC), though at year-end 2013 their amount decreased by 12% in comparison with the year 2012 and made approximately 6,5 thousands.

Share structure of bankruptcies in Russia on the types of business organisation, %

Among the largest constituent entities of the RF on the Gross national product (GNP) index the highest number of bankruptcies at year-end 2013 is registered in Saint-Petersburg – 375 companies, in Kemerovo region – 307 enterprises, in Sverdlovsk region – 297 organizations and in Moscow – 293 firms.

It is worth specially noting, that one of the most common causes of bankruptcy proceeding declaration, as well towards legal persons, as towards IE, is finding in the course of field tax inspection of facts of dealings with «fly-by-night companies» during last three years. That’s why it is worth choosing and checking your contractors at most carefully for avoiding additional tax assessment in the future.

The expansion of mortgage and consumer finance market, the increase of the volume of loan arrears have determined the necessity in the legislative regulation of cases of bankruptcy of ordinary nationals, not being individual entrepreneurs. The bill was passed in the first reading by the State Duma, but at the moment the work on it is going slowly. The question about the low threshold of liability, by the reaching of which it could be possible to initiate bankruptcy procedures, has become the «stumbling point». In the first variant of the bill the threshold value was set at the level of 50 000 RUB, but firstly this sum is comparable to the amount of expenses for the bankruptcy proceeding itself, and secondly too low threshold value will act as a peculiar kind of collapse of the judiciary, which may just fall down on the amount of bankruptcy cases. As of today the creators lean to the sum of 300 000 RUB. In this case the holders of mortgage and automobile loans will fall under the force of new law.

Note that according to the data of the Central Bank for January-February of the current year the volume of loans, provided to natural persons by Russian banks, increased by 1,4% and made more than 10 tln RUB.

The XXII Olympic Winter Games in Sochi are closed. Russia has topped the non-official medal standings, won 13 gold, 11 silver and 9 bronze medals, that’s happened for the first time upon the breakup of the USSR. Besides, our country has broken the record of the 1988 Olympics in Calgary (Canada) on the total amount of awards, that time there were 29 medals of different kind got by sportsmen of our team.

In the 119th IOC session, held in 2007 in Guatemala, the Russian application for participation won by 4 votes and Sochi was selected as the host city for Winter Games. Along with that there were a lot of skeptical experts appeared, who pointed at that the Olympiad in subtropics is fated to failure. However, as we can see now, nothing of the kind happened. For the short term there were the Olympic Park erected in the resort town from the ground up, the mountain ski complex Krasnaya Polyana (Rosa Khutor) and transportation infrastructure of Sochi fully modernized.

Scale Olympic project was a driver for economic growth of the whole Krasnodar Territory, what can be observed through basic macroeconomic indicators.

So, in the years 2010-2013, in the most active building period, the gain in industrial production in the Krasnodar Territory average was 5,9%, while countrywide – 3,9% per annum. The year 2012 is especially representative in this context – that time the industrial production in Kuban increased by 8,1%, and in Russia by «modest» 2,6%.

Picture 1. Gain in industrial production in the RF and the Krasnodar Territory, for years 2010-2013, %

 Picture 2. Increase of investments to the fixed assets in the RF and the Krasnodar Territory, for years 2007-2012, %

Also similar situation was observed with the increase of investments to the fixed assets. If in the years 2007-2012 the investments have been rising country average by 6,7% annually, then in the Krasnodar Territory by 18,5%, by that the highest increase of investments was in 2010 – a record 41,5%.

One more fact, which represents the economic development of the Krasnodar Territory and Sochi in particular, is the cumulative turnover growth of companies, registered in the resort town. According to the data of the Information and analytical system Globas-i® of the Agency Credinform, total amount of companies, registered on the territory of Sochi and submitting reports on their financial and economic activity to the Rosstat, is 3 386. Cumulative turnover of these organizations for 2012 (the last available accounting period) went up by 45,9% to the level of the year 2011, in 2011 – by 24,9% in comparison with the year 2010, and in 2010 – by 34% compared with the year 2009.

The total expenditure value, which went towards preparation to the games, taking into account the investments for the development of the South of Russia, is difficult to estimate, Andrei Klepach, the Deputy Economic Development and Trade Minister of Russia, declared on the press-conference – they reach about 1,3-1,5 trillion RUB. And according to the data of the Bank of Russia, the effect from investments will make 0,3% of GDP growth at an annual rate.

We’ll hope, that all objects of the Olympics will play in the future an important role in the development of the domestic sports and will help our sportsmen prepare properly to next games, which will be held in PyeongChang, South Korea. Because just recently there were no one world-class sports complex for special kinds of sport on the territory of the country (bobsleigh/luge track, track for speed skating etc.). Now our teams needn’t to go abroad for in-season trainings. Also it may well be that the built infrastructure and media effect from the Olympiad will make more attractive the main place of resort of the country in the eyes of our nationals and foreign tourists.