Russian companies doubled revenues to $15 trillion even amid sanctions

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Russian companies doubled their revenues to $15 trillion last year because the energy market did so well — but that doesn't mean they're reaping massive profits

Russian companies raked in record revenue levels last year, even among sweeping sanctions over the Ukraine war.

The country's companies made over 1.3 quadrillion rubles, or $15 trillion, in revenue last year, according to data from the country'sThat's nearly double the 655 trillion rubles Russian companies made in 2021, per the tax service department's statistics. The robust sales came from"the growth of mainly oil and gas companies' export revenues and the recovery of consumer demand for goods, works and services," Russia's tax service announced, perRussia's revenue doubled year over year, but profit growth was moderate

Despite the historic revenue, Russian companies posted more modest profit growth of about 6% from a year ago — far lower than the average inflation rate of nearly 14%, per RBC. The moderate profit growth is due to rising costs as companies navigate tough sanctions, analysts told RBC. The record revenues at Russian firms in 2022 came on the back of concerns about energy supply. Russia is a major energy exporter, and its invasion of Ukraine led to fears that supplies would be disrupted by the war.

 

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