MOSCOW, September 21 (RAPSI) – Russia’s Business Rights Commissioner Boris Titov has appealed to President Vladimir Putin asking him to prolong a program of subsidies for wages and salaries in the industry of entertainment, organization of congresses and staging of exhibitions, the press service of the Business Ombudsman informs on Monday.
The program, according to Titov, has had a temporary positive effect; nevertheless, its most sought-after component, that is provision of direct subsidies for financing of wages and salaries, was in force only for two months (April and May), whereas the lockdown has been much longer and still continues for certain businesses in this sphere, the letter reads.
The Business Ombudsman notes that there is a risk of a surge in bankruptcies, especially taking into account technical difficulties as to getting loans for resumption of business activities.
According to statistics, about 25,000 enterprises are operating in the industry; the prolongation of the program for June, July, and August will require about 3.1 billion rubles (circa $41 million at the current exchange rate).