In Russia Non Oil and Gas sector is the driver of revenue growth for large and medium-sized businesses

According to TASS, the revenue of Russia’s non-resource sector of large and medium-sized enterprises increased by 16.4% to 184.9 trillion rubles in 2023. Meanwhile, the revenue of oil and gas companies decreased by 3.3% to 65.8 trillion rubles, this was reported by the services analytics audit and consulting network FinExpertiza.

The study shows that due to economic restructuring, reduced exports, and increased manufacturing, the oil and gas industry’s share of total business revenue decreased to 26%. Russian business’s total income increased by 10.5%.

Enterprises in Chukotka, the Amur region, Chechnya, the Khanty-Mansiysk Autonomous Okrug, the Primorsky Territory, Chuvashia, the Smolensk region, and the Tyumen region demonstrated the highest growth.

However, cash receipts from enterprises in four regions, namely St. Petersburg, the Kemerovo region, the Yamalo-Nenets Autonomous Okrug, and the Novgorod region, decreased.

According to Rosstat data, the total revenue of large and medium-sized businesses for 2023 was 250.7 trillion rubles, which is an increase of 23.9 trillion rubles or 10.5% compared to 2022.

This growth rate is higher than the average annual consumer (5.9%) and industrial (4%) inflation. The non-oil and gas sector was the main driver of this growth, with cash flow increasing by 16.4% or 26.1 trillion rubles to 184.9 trillion rubles. FinExpertiza analysts were quoted by the agency.

Overall, non-commodity businesses are strengthening their position. In 2023, the share of enterprises not related to oil and gas production and refining in terms of total revenue increased to 74% from 70% in 2022.

Analysts noted that revenue from the oil and gas sector decreased from 30% to 26%, or about a quarter. According to them, commodity companies faced difficulties in the past year. In the first few months, an embargo on exporting of oil and petroleum products to Europe was implemented, along with a price ceiling on energy supplies to other countries.

Although it was possible to replace the shortfall in exports with supplies to friendly states, maintaining the same level of oil and gas revenues was not possible.
To continue to read this article ‘Free Of Charge’ please click on the link below.

In Russia Non Oil and Gas sector is the driver of revenue growth for large and medium-sized businesses

According to TASS, the revenue of Russia’s non-resource sector large and medium-sized enterprises increased by 16.4% to 184.9 trillion rubles in 2023….