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Analytical Center for the Government of the Russian Federation

Analysts study regional structure of public sector in Russian economy

The Analytical Center keeps studying the role played by the public sector in the corporate environment. The new bulletin on the development of competition supplements the traditional analysis of the federal state of affairs with an estimate of the amount of regional and municipal property in the corporate segment.

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.