Russian Companies' Revenues Collapse By One Third Due To Sanctions

Inflationary expectations also had an impact on reducing revenues.

The total income of Russian companies in 2023 fell by 36% - to 814 trillion rubles. This follows from the data of the analytical portal of the Federal Tax Service (FTS), to which Izvestia drew attention.

At the same time, in the first year of the war against Ukraine, the figure exceeded the quadrillion for the first time and amounted to 1267 trillion rubles.

The decline in organisations' income last year was due to external sanctions: companies need to restructure their logistics and production processes, explained Andrey Borodkin, general director of the Techzor Group of Companies.

"Since the infrastructure of economic relations of business with friendly countries was not sufficiently developed, it required building new trade and financial ties last year," said Ravil Akhmadeev, associate professor of the Department of State and Municipal Finance at the Plekhanov Russian Economic University.

He said that the reduction in revenues was also influenced by inflationary expectations, to curb which the Central Bank raised the interest rate to 16% last December. As a result, loans have become more expensive and companies' ability to invest in business expansion has shrunk.

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