Optimizing the Relationship between Oil Exporters and the Government Knowledge Economy Forum III Innovation in Traditional Sectors to Improve Competitiveness of Russian Economy Optimizing the Relationship between Oil Exporters and the Government Yaroslav Kouzminov, Higher School of Economics Moscow, Russia

Export specificity 8.3 million 3.4 million Production Export Energy resources are main items of the federal budget UKOS Lukoil 8.3 million Production Surgutneftegas barrels per day TNK 3.4 million Export Sybneft Tatneft Knowledge Economy Forum III Improving Competitiveness Through a Knowledge-Based Economy

Poor regulation of officials’ activities (terms, jurisdictions etc) Reasons for inefficiency Low effectiveness of executive authorities Poor regulation of officials’ activities (terms, jurisdictions etc) Knowledge Economy Forum III Improving Competitiveness Through a Knowledge-Based Economy

Exporters’ problems 2. Export confirmation 3. An application A custom 2. Export confirmation 3. An application for VAT return An application for an export confirmation 5. VAT Return The Department of Taxes & Duties 4. An order for the Treasury The Treasury

Export confirmation process at present Exporters’ problems Export confirmation process at present 10 days (according to the law) Export custom Export confirmation Up to 3 months In fact Export office Export Permission Internal custom to export 180 days VAT for application to DTD in price VAT return 4 - 5 Exporter days Purchase Custom Application for export Application for of МТР declaration confirmation VAT return 2 - 3 weeks The decision about VAT return is being taken Order to treasury DTD Bank Payment confirmation Up to 3 moths Knowledge Economy Forum III Improving Competitiveness Through a Knowledge-Based Economy

Consequences for exporters Exporters’ problems Consequences for exporters The period between the date of export and the date of VAT return can be up to several weeks A temporary withdrawal of funds from circulations damages exporters and, finally, Russian economy on the whole. Knowledge Economy Forum III Improving Competitiveness Through a Knowledge-Based Economy

Analysis of the situation Exporters’ problems Analysis of the situation Difficulties – combination of problems: poor regulation of inter-departmental interaction VAT returns procedures were handled by request only “manual” technologies of information sharing based on hard copy documents Knowledge Economy Forum III Improving Competitiveness Through a Knowledge-Based Economy

Analysis of the situation Electronic administrative regulations Analysis of the situation Solutions: The organization of inter-organizational electronic document circulation The use of electronic administrative regulations Knowledge Economy Forum III Improving Competitiveness Through a Knowledge-Based Economy

EAR – Electronic administrative regulations documents in digital form which describe the order of planning, organization and registration of operations, aimed at achieving organization’s goals Knowledge Economy Forum III Improving Competitiveness Through a Knowledge-Based Economy

Electronic administrative regulations EAR development Standard acts and legal documents Goals and tasks of activity Duties, authorities, jurisdictions, responsibilities, scope of work, instructions ЭАР EAR Knowledge Economy Forum III Improving Competitiveness Through a Knowledge-Based Economy

Electronic administrative regulations Expected results of the project of The State Customs Committee and The Department of Taxes and Duties 25 Billion rubles Savings of economic agents 90 % Time savings Knowledge Economy Forum III Improving Competitiveness Through a Knowledge-Based Economy

Conclusions and recommendations Conclusions about the causes of the problems “Mechanical” integration of departmental procedures. Lack of understanding of a complex character of inter- departmental interaction. Lack of systemic methods and formal analysis. Insufficient knowledge of modern information technologies. Knowledge Economy Forum III Improving Competitiveness Through a Knowledge-Based Economy