Page 48 - RusRPTFeb23

Index registered 45.9 in December, down from 48.3 in November, and below the 50.0 no-change mark, signalling a strong decrease in Russian service sector output, according to the latest Services and Composite PMI report by S&P Global.
December’s decline in services activity was the third in as many months and the second-fastest since April. As a result, the S&P Global Russia Composite PMI Output Index posted 48.0 in December, down from 50.0 in November, also indicating contraction.
4.3.2 Corporate profits dynamics
Only 6% of foreign companies have left Russia, and 40% do not plan to do so. 177 companies with foreign capital have left the Russian market, which is 6% of the total number. Another 1,156 businesses (38%) have closed operations and are in the process of exiting the market. However, according to the KSE Institute, 16% or 489 companies with foreign capital have reduced their current operations, suspended new investment, and are waiting to resume operations. Another 1,203, or 40% of foreign enterprises, are operating in Russia without any restrictions. Analysts estimate that the foreign companies that left the Russian Federation employed 307,300 people (more than 22% of the international companies' staff in Russia). In 2021, they paid $3.3B in taxes, 13.4% of the total amount of taxes paid by foreign businesses to Russian budgets at all levels.
48 RUSSIA Country Report February 2023 www.intellinews.com