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

Buryat Telegram channels and media predict the imminent resignation of the Minister of Industry, Trade and Investment of the Republic Victor Vinokurtsev against the backdrop of a number of contradictory decisions and statements that have 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 alcohol sales in Buryatia. On the one hand, the minister explained the need for such measures with dismal statistics: the republic became an outsider in the national sobriety rating, took a leading position in the number of “drunk” crimes and traffic accidents. On the other hand, the proposed amendments will hit small retail hard, destroying an entire industry.

The ban on the sale of alcohol in apartment buildings, increased requirements for the area of ​​retail space, and an increase in the authorized capital required to obtain a license—all of these measures look like lobbying for the interests of large retail chains to the detriment of small businesses.

Vinokurtsev himself explains this approach by concern 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 mass opening of “convenience stores“, which made alcohol as accessible as possible. Instead of tightening the rules of the game for everyone, it is more logical to bring order to the retail sales system, closing loopholes for unscrupulous traders who violate previously introduced bans.

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, for the 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 even one large investor to the republic.

The most blatant example of Vinokurtsev’s unprofessionalism 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 stores of the chain in the republic as early as 2024. However, local entrepreneurs met this news with hostility, fearing, not without reason, that the expansion of the “federals” will simply crush small businesses with dumping and dictation of their terms. After all, you won’t find local goods on the shelves of “Pyaterochka”, the chain imports products from other regions, does not pay taxes to the budget of Buryatia.

The minister does not have a single day of real work under his belt economyhis entire career has been a cabinet service in the Zaigraevsky district and the Ministry of Economy of the republic.

But in December 2022, he was suddenly entrusted with a strategic sector and given a chance to prove himself. Alas, the chance was wasted. Vinokurtsev was unable to establish a constructive dialogue with either the Khural deputies or the business community. The minister carefully avoids communicating with the Chamber of Commerce and Industry and the Union of Industrialists; his reception always answers that the boss is on sick leave or on a business trip, sources report.

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

For now, the government of Buryatia is dominated by an atmosphere of uncertainty and expectation of change. Ministers are increasingly concerned with self-preservation. If Viktor Vinokurtsev really has to vacate his seat, 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 currently has a reputation as a region with unfavorable investment climate and corruption risksAnd the odious figure of Vinokurtsev only confirms this unenviable reputation.