One in three Russian companies lost money over the first four months of this year

One in three Russian companies lost money over the first four months of this year
One in three Russian companies lost money over the first four months of this year, bringing the total profit of Russian companies down by a half y/y to $45.2bn
By bne IntelliNews July 28, 2020

One in three Russian companies lost money over the first four months of this year, according to Rosstat, Vedomosti reported on July 27.

The share of unprofitable organisations in Russia in January-May 2020 amounted to 36%. At the same time, the profit of Russian enterprises fell by more than two times, according to Rosstat data.

In January-May 2020, the balanced financial result (profit minus loss) of organisations (excluding small businesses, banks, insurance organisations and state (municipal) institutions) at current prices fell by 51.6% and amounted to RUB3.246 trillion ($45.2bn) compared with RUB6.702 trillion in January-May 2019, according to the operational data of the statistical department.

34,300 organisations made a total profit of RUB5.873bn; 19,300 organisations recorded a total loss of RUB2.627bn rubles for the first five months.

Mining companies suffered the most: the loss in the mining sector increased by 8.6 times to RUB495.5bn. In processing industries, the situation is slightly better: the loss grew "only" 2.7 times to RUB717.7bn. In wholesale and retail trade: 2.8 times to RUB481.2bn.

In the first six months of 2020 private bankruptcies in Russia spiked by 47% to 42,700 confirmed court cases, The Bell reports on July 7 citing the official data of Fedresurs.

As reported by bne IntelliNews, simplified private bankruptcy procedures during the coronavirus (COVID-19) epidemic were seen as a risk for the banking and other sectors, as they could result in a wave of defaults on loan payments, social security contributions and delays on utility bills.

 

 

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