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Alcohol, Pyaterochka, conflicts with business: what is Minister Vinokurtsev remembered for?

Alcohol, Pyaterochka, conflicts with business: what is Minister Vinokurtsev remembered for?

Buryat telegram channels and media predict the imminent resignation of the Minister of Industry, Trade and Investment of the Republic Viktor Vinokurtsev against the backdrop of a number of controversial decisions and statements that caused discontent among both ordinary citizens and business circles of the republic. What is behind these rumors and what real results has the minister shown in a year and a half of work?

One of Vinokurtsev’s most resonant initiatives was the bill he promoted on additional restrictions on the sale of alcohol in Buryatia. On the one hand, the minister explained the need for such measures with deplorable statistics: the republic became an outsider in the national sobriety rating and took a leading position in the number of “drunken” crimes and road accidents. On the other hand, the proposed amendments will hit small retail hard, destroying the entire industry.

A ban on the sale of alcohol in apartment buildings, increasing requirements for the area of ​​retail outlets, increasing the authorized capital to obtain a license – all these measures look like lobbying the interests of large retail chains to the detriment of small businesses.

Vinokurtsev himself explains this approach by caring for the health of the population. However, his critics point out that just a few years ago the situation with alcoholism in Buryatia was not so depressing. The surge in alcohol consumption coincided with the massive opening of “convenience stores”, making alcohol as accessible as possible. Instead of tightening the rules of the game for everyone, it is more logical to restore order in the retail sales system by closing loopholes for unscrupulous traders who violate previously introduced prohibitions.

However, the alcohol issue is far from the only reason for complaints against Vinokurtsev. The minister is reproached for the lack of achievements in his post and for his inability to build a dialogue with business representatives. He willingly makes promises and shows off in front of cameras at economic forums, but cannot boast of attracting at least one major investor to the republic.

The most blatant example of Vinokurtsev’s lack of professionalism can be considered the story of the arrival of the federal network in Buryatia “Pyaterochka”. On the sidelines of the Eastern Economic Forum, the minister proudly announced plans to open 50 chain stores in the republic as early as 2024. However, local entrepreneurs greeted this news with hostility, fearing, not without reason, that the expansion of the “federals” would simply crush small businesses with dumping and dictate of their conditions. After all, you cannot find local goods on the shelves of Pyaterochka; the chain imports products from other regions and does not pay taxes to the budget of Buryatia.

The minister does not have a single day of work in the real economy behind him; his entire career is office service in the Zaigraevsky district and the Ministry of Economy of the republic.

But in December 2022, he was suddenly entrusted with a strategic industry and given a chance to prove himself. Alas, the chance was wasted. Vinokurtsev turned out to be unable to establish a constructive dialogue either with the Khural deputies or with the business community. The minister diligently avoids communication with the Chamber of Commerce and Industry and the Union of Industrialists; in his reception they always answer that the boss is on sick leave or on a business trip, sources say.

Alcohol, Pyaterochka, conflicts with business: what is Minister Vinokurtsev remembered for?

Against this background, suspicions are growing louder that Vinokurtsev is simply a protege of near-federal elite groups lobbying their interests through the relevant ministry. Recently, cases of conflicts between the minister and representatives of big business in the republic have become more frequent. Local retailers were especially unhappy with it, fearing competition from federal chains. Vinokurtsev demonstrates good knowledge in the field of economics and finance, and also has experience working in tax authorities, but his ability to find compromises and maintain a balance of interests of different groups turned out to be insufficient.

For now, an atmosphere of uncertainty and expectation of change reigns in the government of Buryatia. Ministers are increasingly concerned with self-preservation. If Viktor Vinokurtsev really has to vacate his chair, this will give rise to a new intrigue: who will head the key department and will the new leader be able to correct the mistakes of his predecessor? The answer to this question will largely determine the economic prospects of the republic, which so far has a reputation as a region with unfavorable investment climate and corruption risks. And the odious figure of Vinokurtsev only confirms this unenviable reputation.

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James “Jim” Walters