Russian companies' revenues fell by third due to sanctions
The analytical portal of the Federal Tax Service of Russia (FTS) has reported that the total revenue of Russian companies in 2023 fell by 36% to RUB 814 trillion (US$9 trillion).
Source: Russian version of The Moscow Times.
Details: In the first year of the war against Ukraine, the figure exceeded the quadrillion mark for the first time and amounted to RUB 1.26 trillion (US$14 billion), The Moscow Times said.
The decline in organisations' revenues last year was due to external sanctions: companies need to rebuild their logistics and production processes, explained Andrei Borodkin, CEO of the Russian Tekhzor Group of Companies.
It is noted that since the infrastructure of economic relations between businesses and Russia’s "friendly" countries was not sufficiently developed, new trade and financial ties had to be built last year.
Overall, however, the situation with the profitability of organisations in 2023 was quite positive, with indicators at 2019 levels. Some industries have moved from being consistently unprofitable to profitable, including mechanical engineering. This is directly related to the war in Ukraine and state defence procurement, but also to import substitution.
Background:
- The Russian government has set a goal of reproducing Western microchips from the mid-2000s by 2028.
- Profits in Russia's coal mining sector plummeted by 93% in the first four months of 2024 to just RUB 14.3 billion (roughly US$161.2 million).
Support UP or become our patron!
