Page 32 - RusRPTSept20

4.3.2 Corporate profits dynamics
Russian corporates see the biggest drop in profits in 16 years having lost RUB1.65 trillion ($22.3bn) in the second quarter of this year when a third of Russia’s companies remained in the red, according to FinExpertiza.
The coronavirus pandemic has inflicted “catastrophic” damage to Russian business, according to FinExpertiza. Total profits, excluding small businesses, in March-May 2020 decreased by 67% on an annualized basis, the paper reports – the worst result on record.
The previous all time low was set in 2017 when the profits of Russian companies fell by 28%.
The total profit of Russian business in the spring of 2020 amounted to RUB1.4 trillion: but a third of those companies were in loss and dropped RUB1.65 trillion, according to FinExpertiza, while the profitable companies collectively earned RUB3.05 trillion.
In spite of everything, in most regions of Russia, business still made a profit following the results of three spring months, says FinExpertiza. However, in 16 regions, financial indicators have deteriorated so badly that business in the region as a whole was in a loss. The regions that did worst were:
Moscow - business received a total loss of RUB85bn; Yamalo-Nenets Autonomous District - RUB51.2bn; Komi Republic - RUB19bn;
Amur Region - RUB13.2bn;
Nenets Autonomous Okrug - RUB7.7bn; Tomsk region - RUB7.6bn;
Chechnya - RUB3bn;
Dagestan - RUB2.7bn;
North Ossetia - RUB1.9bn; Crimea - RUB1.88bn.
32 RUSSIA Country Report September 2020 www.intellinews.com