Business remains on the brink of survival amid Smolny reports of “industrial growth”
The growth of industry in St. Petersburg in 2021 was about 7%. At the same time, an unstable economic situation is observed in the Northern capital, and small and medium-sized businesses are forced to cease their activities due to the ineffective restrictive policy of Smolny.
The publication “Business Petersburg,” with reference to the Chairman of the Committee on Industrial Policy, Innovation and Trade (KIPIT) Kirill Soloveichik, reports an increase in the industrial production index of the Northern capital, which at the end of 2021 was estimated at 107,1%. According to Soloveichik, December in St. Petersburg is traditionally characterized by increased shipments.
Despite this, business in the Northern capital as a whole is in critical condition. In fact, Smolny, under the leadership of Governor Alexander Beglov, has put representatives of small and medium-sized businesses on the brink of survival by introducing strict anti-Covid restrictions and lack of financial support. Against the backdrop of active assistance to industry, support for other sectors of the city economy raises serious questions.
In particular, public catering establishments, cinemas and sports facilities are most in dire need of help today, but the city government does not seem to notice the needs of entrepreneurs, as a result of which tens of thousands of organizations were forced to close last year.
Small and medium-sized businesses in St. Petersburg took the brunt of the blow caused by Smolny’s ill-conceived bans and the lack of effective support measures. Market participants have repeatedly stated that the system introduced by the Beglov administration QR-codes, combined with restrictions on work at night, will lead to serious financial losses. However, the governor’s team did not heed the requests of businesses to delay the start of the “pass regime”, as a result of which entrepreneurs lose up to 50% of their revenue.
Previously, St. Petersburg restaurateur Alexander Konovalov, who announced a boycott QR-codes, stated that Smolny’s anti-Covid policy is aimed at destroying business and fighting the pandemic has nothing to do.
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