Russia’s tax authority reports record gross revenue made by Russian businesses in 2022, even as real profits shrank

Source: Meduza

According to Russia’s Federal Tax Service, the gross revenue made by Russian businesses in 2022 exceeded a quadrillion rubles, setting a historic record. Based on the 2022 corporate tax filings, gross business revenue came to an unprecedented 1.268 quadrillion rubles (or roughly $15.1 trillion), as reported by the Russian news outlet RBC.

The 2022 figure for gross annual revenue by Russian companies is nearly double what had been reported the year before. The tax authority attributes the change to “increased export revenues of organizations mainly in the petroleum industry, and the recovering consumer demand for goods, labor, and services.”

At the same time, the Russian companies’ gross profits have only increased by 5.9 percent, compared to 2021. Considering the inflation of 13.8 percent in 2022, real profits have, in fact, diminished, RBC points out.

Economists who spoke with RBC about the gap between the Russian companies’ booming revenues and their profitability attribute the difference to the sanctions that disrupted the supply chains, eliminating efficiencies and increasing logistical costs and expenditures.

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Russia’s tax authority reports record gross revenue made by Russian businesses in 2022, even as real profits shrank

A crisis of abundance and other paradoxes UCLA economist Oleg Itskhoki talks about Russia’s economy under sanctions, why it ‘failed to collapse,’ and the crisis around the corner

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