Given its substantial role in the Russian economy, the public sector influences competition on commodity markets. Hence, the analysts view as a key principle of the state policy promoting competition a reduction of the proportion of state-owned companies on competitive commodity markets.
The analysis suggests that regionally and municipally owned companies mostly operate on socially significant markets, such as healthcare, education and social services, while a small number of big entities generate most revenue: 50 biggest regional companies accounted for 74% of all reported corporate revenue in regions. Few regionally and municipally owned companies focus on commercial activity.
Most revenue of municipally owned entities (38%) is generated by electricity, gas and steam providers and air conditioning companies, which, however, account for only 1.6% of the total number of municipal entities, the bulletin said.
The RIA Rating estimated the value of 100 most expensive companies of Russia at $808 billion as of December 31, 2019. By the level of capitalization, the share of state-run companies in the Top 100 stood at 50%.
Read more in the Bulletin, “Public Sector in the Russian Economy: the Regional Structure.”
Read other bulletins on the development of competition here.