‘A drop in profits is definitely one of Sverdlovsk Region’s key problems. We cut back on everything we possibly could in the budgets for 2008 and 2009; only now can we actually start raising our current expenses limits,’ the region’s Economy Minister Mikhail Maksimov said during his meeting with Sverdlovsk Region’s town mayors.

‘This is why the issue of tax legalization is extremely important just now. In October 2009, the government adopted a provision on helping the economy’s real sector make more profit, so the recession-defying committees now must solve the issues related to enterprises’ lack of profit and poor tax payments,’ he explained.

‘For one, we looked at Evraz Group’s enterprises, which paid billions of rubles less in taxes because their profitability was 100% in 2008 and only 10% in 2009. The thing is, about 3% of Sverdlovsk Region-based companies yield 80% of the region’s budget revenues; 47% of enterprises suffer losses, and the rest can only break even. We need to pay special attention to such businesses,’ Maksimov noted.

In fact, Head of Sverdlovsk Region Government Anatoly Gredin has already suggested looking into the causes of Evraz Group enterprises’ dropping tax payments. He mentioned Vanadium Ore Mining and Processing Enterprise in particular.