Spending by Russia’s large and medium-sized enterprises in the first nine months of the last year rose by 12 percent, reaching a record 18.9 trillion rubles compared with the same period a year earlier. This surge was reported by FinExpertiza, a firm that provides audit and consulting services. The rise is attributed to non-production costs, including commercial and administrative expenses that do not directly touch the manufacturing or service delivery process. These items often reflect strategic choices by firms facing a volatile market, rather than a simple swing in input prices.
The audit firm notes that the annual average expense per company climbed by about 9.7 percent. FinExpertiza points to several drivers behind the uptick: inflation, fluctuating demand for goods and services, and higher costs tied to production, storage, and logistics. While this year’s pace marks a notable increase, auditors observe that the growth rate of such costs in 2021 was even stronger, reaching around 18.4 percent, underscoring how cost pressures can surge in less predictable economic environments.
“Businesses are tightening belts as uncertainty lingers”, the firm observed. Cost containment measures are now a central concern as companies navigate financing constraints, shifting demand, and supply chain fragility. The analysis underlines that managerial decisions around overheads, marketing, and administrative functions are playing a key role in shaping overall corporate performance.
Regional patterns in 2022 show that operating expenses were highest in major metropolitan and resource-rich areas. Moscow and St. Petersburg were repeatedly highlighted, along with the Moscow region and Kemerovo region, where cost levels tended to be elevated due to dense business activity and sector concentration. These geographic variations reflect the uneven spread of overheads across the country and the differing business ecosystems that influence spending behavior.
Earlier data from the agency TASS, cited in the FinExpertiza report, reflected a mixed dynamic for company formation. In Russia during the prior year, about 242.1 thousand new enterprises opened while 280.2 thousand commercial entities closed, leaving a net negative of 38.1 thousand registrations, or roughly 13.6 percent. Auditors note that new openings rose by 8.6 percent compared with the year before, whereas the rate of closures declined by more than a quarter, down 25.1 percent. The overall trend suggests a continued shrinkage of one-day firms and a stabilization of the total number of registered businesses near the long-term baseline. This pattern is interpreted as the economy reshaping itself through the elimination of transient entities, rather than a collapse of entrepreneurship as a whole. In market commentary, experts emphasize that the data illustrate a cleaning process that separates durable, sustainable companies from ephemeral ventures. (Citation: FinExpertiza; data attributed to TASS)