Aleksey Vedev, Leading Researcher, Financial Studies department of the Gaidar Institute, explained reasons of reduction of state enterprises and companies having public ownership.
RBC calculations based on Rosstat data demonstrated that overall number of legal entities owned by the state reduced by 9% including companies having public ownership where state owns at least quarter of shares reduced by 30% in the period of four years from 2016 until early 2019.
Aleksey Vedev considers that there is an overall reduction of economic entities, especially, medium sized and small enterprises going on as a result of depression, poor market condition and stagnation of economy.
Aleksey Vedev stated: “Number of unitary enterprises is declining most strongly, that is, by 39% from 2016 to 2019. “Unitary enterprises are most commonly associated with budget financing. It is not a secret that there are plenty of minor unitary enterprises affiliated with top management around state corporations.
Number of commercial corporate enterprises reduced by 21.8%. At the same time, number of public shareholding companies reduced twice compared to increase of non-public companies by 39.9%.
Vedev noted in his interview that non-public shareholding enterprises became larger and stronger. He explained that even public companies fall short of transparency in Russia and have a low portion of free- floating shares. Most commonly, stock exchange is used rather for redistribution of property than for attraction of investment.