In the context of Western sanctions, Russian business has to rebuild logistics and production processes.
The total income of Russian companies in 2023 fell by 36% – to 814 trillion rubles. This is confirmed by data from the analytical portal of the Federal Tax Service of the Russian Federation, RosZMi wrote on Tuesday, July 2.
At the same time, in the first year of the war against Ukraine, the figure for the first time exceeded a quadrillion and reached 1,267 trillion rubles.
The decline in the profits of Russian companies last year was due to external sanctions: businesses had to rebuild logistics and production processes.
Since the infrastructure of economic relations between businesses and “friendly” countries for Russia was not sufficiently developed, it required the construction of new trade and financial relations last year.
However, in general, the situation with the profitability of organizations in 2023 is quite positive – the indicators are at the level of 2019. Some industries have moved from the category of persistently unprofitable to profitable, including mechanical engineering . This is directly related to the war in Ukraine and state defense orders, but also to import substitution.
Let’s remember that earlier in Russia they announced the “peak of overheating” of the economy. The Bank of Russia sees the biggest signs of overheating in the consumer demand segment.
According to forecasts from the Vienna Institute of International Economic Research, the Russian economy is increasingly dependent on the continuation of the war.
The IMF predicts a significant economic decline for Russia within five years
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.