During the pandemic, the support the Russian government offered to the national businesses has been theatrical rather than practical, and it will take both entities and individuals a long time to overcome the pandemic’s aftermaths, Mikhail Delyagin, Director of Institute for Globalization Issues, believes.
According to Mikhail Delyagin, during the lockdown most businesses were staying idle, hence could not generate any profits, while the government aid was limited, thus the implications of the pandemic will keep aggravating.
In the expert’s view, during the time of the crisis the authorities could have granted benefits or interest-free loans to micro businesses while monitoring the way the subsidies were used. Besides, Russians could have been temporarily relieved of property and income taxes and of credit repayments. Since none of those has materialized, it will now take the economy a longer time to overcome the damage caused by the pandemic. Therefore, there is no point expecting a V-shaped recovery of the national economy.
Earlier, Mikhail Delyagin called Russian businesses ‘living dead’, noting many companies will cease to exist by the yearend.