10.05.2023, 11:01
Russian state-owned companies began to earn less than private ones
Source: OREANDA-NEWS
OREANDA-NEWS In 2022, the income of companies with state participation in Russia decreased by 52 percent. This is reported by RBC with reference to the Rosstat report.
State-owned companies are joint-stock companies in which 25 percent or more of the shares belong to the state or if it has a special right to participate in management. At the end of 2022, there were 507 such companies in Russia.
About two-thirds of them ended the year with a net profit. However, their total income decreased to 2,136 trillion rubles. At the same time, the profit of the entire Russian business decreased to 26.93 trillion rubles (minus 12.6 percent).
The fact that state-owned companies began to earn less than private ones, Ksenia Bondarenko, senior lecturer at the Department of World Economy of the Faculty of World Economy and World Politics of the HSE, explained the effect of the high base of 2021. During this period, their income amounted to about 4.5 trillion rubles, while other businesses suffered greatly during the pandemic. Also, many state-owned companies were affected by the sanctions of 2022. According to the Institute of Applied Economic Research (IPEI) of the RANEPA, in 2021 the share of the public sector in the economy increased to 52.6 percent of GDP, which was the highest since the early 2000s. Over the past twenty years, it has almost doubled.
In December 2022, Russia strengthened the responsibility of top managers of state-owned companies for achieving indicators and timely publication of reports. For poor performance and failure to provide data on time, managers will be deprived of 20 percent of incentive payments, and for successful work they will be rewarded more generously in the amount of 15-50 percent of the total annual bonus. They were also required to report quarterly on the achievement of key performance indicators.
State-owned companies are joint-stock companies in which 25 percent or more of the shares belong to the state or if it has a special right to participate in management. At the end of 2022, there were 507 such companies in Russia.
About two-thirds of them ended the year with a net profit. However, their total income decreased to 2,136 trillion rubles. At the same time, the profit of the entire Russian business decreased to 26.93 trillion rubles (minus 12.6 percent).
The fact that state-owned companies began to earn less than private ones, Ksenia Bondarenko, senior lecturer at the Department of World Economy of the Faculty of World Economy and World Politics of the HSE, explained the effect of the high base of 2021. During this period, their income amounted to about 4.5 trillion rubles, while other businesses suffered greatly during the pandemic. Also, many state-owned companies were affected by the sanctions of 2022. According to the Institute of Applied Economic Research (IPEI) of the RANEPA, in 2021 the share of the public sector in the economy increased to 52.6 percent of GDP, which was the highest since the early 2000s. Over the past twenty years, it has almost doubled.
In December 2022, Russia strengthened the responsibility of top managers of state-owned companies for achieving indicators and timely publication of reports. For poor performance and failure to provide data on time, managers will be deprived of 20 percent of incentive payments, and for successful work they will be rewarded more generously in the amount of 15-50 percent of the total annual bonus. They were also required to report quarterly on the achievement of key performance indicators.
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