Domestic non-extractive firms see revenue rebound in a year, according to FinExpertiza
For the first time in twelve months, the sales turnover of Russian non-extractive domestic companies rose. April marked a 7.4% increase in revenue for these firms, a trend highlighted by Izvestia, which cites data from FinExpertiza, an analytics service within the audit and consulting network.
Across the January-to-April period in 2023, the same study shows a modest annual uptick in the earnings of large and medium-sized Russian enterprises not involved in oil and gas. Overall revenue reached 52.8 trillion rubles, signaling a broadening recovery beyond the energy sector.
Several sectors contributed notably to this expansion. The electric power industry, construction, scientific activities, and transport and storage recorded the strongest growth. The hotel and restaurant sector also posted solid performance, reflecting a gradual revival in consumer-facing services and domestic demand.
A separate reference from the state portal Izvestia, citing the Electronic Budget data for June 26, 2023, notes a shift in the fiscal picture. Customs duties collected by the Russian federal budget were down by about 1.1 trillion rubles relative to the previous year, underscoring the impact of external and domestic factors on fiscal receipts during that period.
In contrast, the early portion of 2023 showed a widening budget gap. The state’s reported deficit for January through March stood at 2.4 trillion rubles, reflecting policy responses to revenue pressures and evolving macroeconomic conditions. Analysts emphasize that non-extractive sectors are increasingly contributing to the resilience of the economy, even as government finance faces headwinds from evolving trade dynamics and revenue composition.
Experts point out that the recovery in non-resource industries is driven by a combination of domestic demand stabilization, productivity improvements, and investment in infrastructure and services. While export-oriented sectors continue to contend with global price and demand fluctuations, the domestic market has shown signs of steadier growth through 2023. Policy measures aimed at supporting small and medium-sized enterprises in these areas appear to be yielding incremental benefits, reinforcing the diversification of Russia’s economic base beyond the traditional resource sector.
Looking ahead, observers expect continued, if uneven, progress across the non-extractive segments. The mix of rising services activity, ongoing construction projects, and energy-related efficiency improvements could sustain a modest pace of revenue growth in the near term. However, the fiscal account will remain sensitive to external shocks, commodity price swings, and regulatory changes aimed at balancing budgetary needs with growth objectives.