Russian State Corporation

Main article: Russian economy

List of state corporations of Russia

• State Atomic Energy Corporation Rosatom
• State Corporation Rostec""
• State Corporation "Russian Corporation of Nanotechnology"
• State Corporation "ВЭБ.РФ"
• State Corporation Deposit Insurance Agency
• State Corporation for Space Activities Roscosmos
• State Air Traffic Corporation

Digitalization

Main article: software in state-owned companies in Russia

Procurement of state-owned companies

Main article: Procurement of state-owned companies

History

2022: Drop in profits of state-owned companies by 52% to 2.14 trillion rubles

In 2022, the total profit of Russian companies with state participation amounted to 2.14 trillion rubles, which is 52% less than a year earlier. This was reported on May 10, 2023 by RBC, citing Rosstat data.

We are talking about a balanced financial result (profit of profitable minus losses of unprofitable) joint-stock companies in federal ownership. Companies where the Federation owns more than 25% of the shares or has a special right to participate in management ("golden share") are taken into account, that is, such as Gazprom, Russian Railways, Alrosa, Rosseti, VTB, Sberbank, RusHydro, Rosneftegaz, Aeroflot and others. By the end of 2022, there were 507 joint-stock companies in federal ownership (a year earlier - 646), follows from the data of Rosstat. About two-thirds of state-owned companies completed 2022 with net profit.

The total profit of Russian companies with state participation amounted to 2.14 trillion rubles

Among joint-stock companies with state participation, the leaders in profit were companies operating in the wholesale and retail sectors, as well as the repair of vehicles and motorcycles. Their balanced profit amounted to about 1 trillion rubles, which is three times less than the results of 2021. At the same time, according to Rosstat, large and medium-sized organizations, including state-owned companies, but without state institutions, lost up to 12.6% of their profits in 2022 due to the impact of sanctions. So, at the end of the year, it amounted to 25.93 trillion rubles.

According to Alexander Abramov, head of the research laboratory for the analysis of financial market institutions at IPEI RANEPA, the dynamics of the share of the public sector in the economy in 2022 can be tracked after the publication of the companies' reports. According to experts interviewed by the publication, the share of the public sector, in which the fuel and energy complex, railways, banks prevail, will decrease if alternative sectors where the state is less present grow.^[1]

2021: How the state's share in the Russian economy has grown in recent years. Schedule

The share states in the economy Russia in 2021 reached 56.23% against 51.06% a year earlier. Such data in May 2023 led the Institute of Applied Economic Research (IPEI). RANEPA

According to RBC, the share of the public sector in GDP at the end of 2021 was the maximum since 2000. At the same time, the data of other organizations - the IMF, OECD, World Bank, FAS - have not been updated for a long time, the publication reported in May 2023. As of 2019, their estimates of the size of the public sector ranged from 33 to 70% of GDP, adds RBC.

The main source of growth in the scale of the public sector for 2021 was companies with state participation. Their contribution to GDP grew from 34.6% in 2020 to 41.9% in 2021, which is a record growth, and the share of the public administration sector and unitary enterprises decreased. Companies with state participation are the most volatile element of the public sector's contribution to the economy: through their indicators, the instability of foreign commodity markets is manifested, experts from the RANEPA note.

The sectoral distribution shows that the public sector covers a significant number of sectors of the Russian economy, both in terms of revenue and assets, which, in turn, additionally indicates the vastness of its presence. Based on the data of the Orbis database (covers information on 370 million private and public companies around the world), RANEPA experts found that on average for 2012-2020. the share of 26% in revenue fell on the transport and logistics sector, 20% - on production, 15% - on mining. For assets, the financial sector accounts for 53%.

In their opinion, for a sharp reduction in the share of the public sector in the economy, serious shifts in its structure are needed. State-owned companies prevail in large industries - fuel and energy complex, railways, banking sector. These industries are cyclical: when oil prices rise, so does the share of public property in GDP. If alternative sectors grow, where the state is less present, then its share will decrease, experts predict.^[2]

2020: Recommendations on the efficiency indicators of state corporations approved

On December 29, 2020, RIA Novosti reported that Prime Minister Mikhail Mishustin approved recommendations on key performance indicators (KPIs) to assess the work of state corporations and development institutions.

There will be ten KPIs, they will be divided into two groups: financial ones that characterize the profitability of the organization, as well as industry ones related to national development goals. At the same time, the "share" of each indicator will be at least five percent.

The Cabinet of Ministers recommended that the profitability ratios of the invested or equity capital, revenue dynamics, and shareholder income be attributed to the first category. By the second - the number of jobs created, the volume of attracted investments, contribution to non-resource non-energy exports and budgetary efficiency. Specialized KPIs, such as continuity and security of service delivery, can be included in this group.

Sectoral performance indicators for each organization will be determined by its governing body in coordination with relevant ministries and departments.

Given the specifics of the activity, the companies plan to divide into four categories in order to calculate KPIs separately for each structure: operating in a competitive market, natural monopolies and infrastructure organizations, financial companies, development institutions.

As noted on the government website, the remuneration of top managers will depend on the achievement of KPIs.

The decision to introduce performance indicators was made in continuation of the reform of development institutions. Mikhail Mishustin announced its start on November 23, 2020. The goal is to make institutions more productive and reorient them to achieve national development goals approved by President^[3].

Notes