Free market strategies to enhance Russia’s wealth aim to foster a competitive, private-sector-driven economy, reducing reliance on natural resource exports (currently ~60% of GDP).

• Reduce Regulatory Barriers: Simplify business licensing, lower compliance costs, and streamline tax systems to encourage entrepreneurship. Complex regulations deter small and medium enterprises (SMEs), stifling innovation. A leaner framework would attract investors. Reducing business registration time (currently ~12 days) could boost startups. This aligns with practices in countries like Singapore. Lower costs free up capital for reinvestment. Streamlined taxes simplify operations. Deregulation could invigorate the private sector. Success hinges on challenging entrenched interests.
• Strengthen Property Rights: Enhance legal protections for property and contracts. Weak rule of law, reflected in Russia’s 154th ranking on the 2024 Corruption Perception Index, discourages investment. Clear property rights encourage capital accumulation. This attracts venture capital for tech startups. Judicial reforms ensure contract enforcement. Investors need protection against expropriation. Transparent land laws spur real estate growth. Stronger frameworks align with global standards. This could reverse capital flight ($64 billion in 2022). Consistent enforcement is vital.
• Promote Competition: Dismantle state-backed monopolies in energy and transportation. Monopolies like Gazprom inflate prices and stifle innovation. Competitive markets drive efficiency. Breaking monopolies attracts private firms in logistics. This lowers business costs. Competition fosters innovation, as seen in global telecoms. Russia’s state-heavy economy limits entry. Opening sectors boosts productivity. Elite resistance is a hurdle. Liberalization could add 1-2% to GDP growth.
• Encourage FDI through Market Access: Ease restrictions on foreign ownership in non-strategic sectors like technology. Limits in strategic industries deter investment. Tax incentives for reinvested profits stimulate FDI. This brings expertise and technology. Open markets signal confidence. Simplified visas for executives facilitate investment. Russia’s non-Western pivot requires fewer barriers. A competitive climate offsets Western divestments. Streamlined customs enhance trade. FDI inflows could rise with reforms.