Against the background of this reduction, as well as pessimistic expectations for the next year, service companies have sharply accelerated staff reductions.
“The sudden shock to the business environment became apparent in April, when the influx of new orders dried up and companies reduced employment at a historically record pace,” Jones notes.
In mid-April, Russian President Vladimir Putin proposed to pay small and medium-sized enterprises for each employee, provided that at least 90% of their staffing level is 12 130 rubles each. per month, which is equal to the current minimum wage. However, according to the president of the Federation of Restaurateurs and Hoteliers of Russia (RFiO) Igor Bukharov, most of the restaurants and cafes that make up a significant part of service enterprises cannot count on a subsidy, since such payments are not supposed for those who sell alcohol. According to Bukharov, due to the lack of adequate assistance from the state, more than 70% of Russian cafes and restaurants can leave the market.
The European Commission has predicted Russia’s fall in GDP is double the sanctioned
On May 6, the head of the Ministry of Economic Development Maxim Reshetnikov said that according to the results of April, the indicator of economic activity in Russia decreased by 33%.
According to the forecast of the European Commission published on the same day, Russia’s GDP in 2020 will decrease by 5%, which will be the worst result since 2009 and more than double the recession of 2015, when the sanctions imposed by the West became the reason for the deterioration in the economy.
Over the past 24 hours, more than 11 thousand cases of COVID-19 infection have been detected in Russia; Russia has reached the fifth place in the world in the total number of infections. On Thursday, Moscow Mayor Sergei Sobyanin signed a decree on tightening restrictions, requiring all public transport passengers and store visitors to wear masks and gloves. The mayor also extended the previously imposed restrictions on the work of non-food stores, cafes, restaurants and other enterprises in the service sector until May 31.
Coronavirus spread rate in Russia
Cases per day
Source: Federal and Regional Anti-Virus Activities
Russian data i