David Kapianidze, Head of Tax Law Practice, BMS Law Firm, in his conversation with the Russkaya Planeta stated that by releasing sole proprietors from debts related to insurance payments the Russian president is pursuing both political and down-to-earth economic purposes.

“On the one hand, this initiative is explained by the forthcoming elections and the need to increase the electorate’s loyalty. On the other hand, there are practical considerations behind it as well, since collecting such debts normally requires more money and labor costs than the amounts to be eventually received”, Kapianidze noted.

“Such debts have negative impact on entrepreneurship. So in this regard writing off debts is a beneficial step, even if the reasons underlying it are purely politically driven”, summed up the expert.