Page 11 - bne IntelliNews Country Report: Russia Dec17

Her campaign theme is also compelling. As the “protest candidate”, she argues that a vote for her is a “vote against everyone”. In effect, Sobchak is inviting those sceptical of the fairness of elections in their country to back her, in order to demonstrate the extent of anti-Putin sentiment – something that might appeal to many Russians. That all bodes well for Sobchak’s campaign, and if she were to secure a significant proportion of the vote – say 15 per cent – she could supplant Navalny as the effective leader of the opposition.
2.4 Russia’s 50 fastest growing companies
Ten retailers were among Russia’s 50 fastest growing companies in 2016 according to the annual ranking compiled by RBC business portal .
The retail segment accounted for RUB606bn ($10bn), or more than half of the aggregate revenues of top 50, soaring from 18% of the total in the preceding year, but still lagging behind RUB1.38 trillion grossed by fastest growing retailers in pre-crisis 2014.
Consumption and consumer demand are on a stable recovery in Russia and are expected to help the government reach the ambitious 2% GDP growth goal in short to medium-term.
Medicine and pharmaceuticals was the second fastest growing sector with RUB116bn of total revenues, followed by transportation (RUB99bn), infrastructure construction (RUB81bn), agriculture and food products (RUB76bn), followed by e-commerce and distribution (RUB38bn and RUB30bn, respectively).
While none of the top 50 fastest growing companies are state-owned (despite 40-70% of GDP contributed by state-controlled companies), the 2017 ranking was topped by B amstroyput infrastructure contractor that soared to RUB20.5bn revenues in 2016 due to generous state contracts.
RBC notes that Bamstroyput is a key Ministry of Defence contractor, participating in creation of the RUB40bn project of National Defence Headquarters in Moscow and Patriot Park.
For the second year in a row the Russian largest railcar and wagon builder United Wagon Company (UWC) is Russia's second-fastest growing company, according to RBC. The company, whose main shareholder is Alexander Nesis is also an investor into Garden Ring bank Financial Corporation Otkritie , posted RUb48bn turnover in 2016 (soaring from only RUB3bn in 2013).
A small irony of the ranking is amongst the fastest growing sectors are health foods and wine sellers – ironic because given Russia’s history and dietary habits both types of company can be seen as part of the middle classes adaptation of a healthier life style.
One of the fastest growing retailers operating about 500 stores is VkusVill healthy food chain, with turnover of RUB18.5bn in 2016 and projected to hit RUB50bn in 2018. RBC reminds that in 2016 the company was valued at RUB10bn prior to the deal with the leading Russian direct investment group, Baring Vostok fund.
11 RUSSIA Country Report December 2017 www.intellinews.com