ALEXEI VEDEV: THE NUMBER OF ECONOMIC ENTITIES IS DECLINING
In his interview to the RBK news agency, Alexei Vedev, Leading Researcher of the Financial Studies Laboratory, the Gaidar Institute explained what stood behind the reduction of the number of state enterprises and companies with state participation.
As per the RBK’s calculations based on the Rosstat’s data, the total number of legal entities in state ownership fell by 9%, including a 30% decrease in the number of companies with state participation (where the government owned minimum a quarter of the equities) for four years from 2016 till the beginning of 2019.
“The number of economic agents, particularly, middle-sized and small ones is falling on the back of depression, unfavorable market environment and economic stagnation”, Alexei Vedev believes.
The number of unitary enterprises has fallen dramatically by 39% from 2016 till 2019. “As a rule, unitary enterprises depend on government funding. No secret that lots of small unitary enterprises are affiliated with the top management of state corporations”, Alexei Vedev notes.
The number of commercial corporate entities has decreased by 21.8%. Notably, the number of public joint-stock companies fell by 50%, while that of nonpublic ones increased 39.9%.
Nonpublic joint-stock companies have enlarged and consolidated, Alexei Vedev notes. “In Russia, even publicly traded companies may have insufficient transparency and a small portion of equities in a free-floating. The stock exchange is largely used for the redistribution of assets, rather than for attraction of funds”, the expert explained.
“The number of economic agents, particularly, middle-sized and small ones is falling on the back of depression, unfavorable market environment and economic stagnation”, Alexei Vedev believes.
The number of unitary enterprises has fallen dramatically by 39% from 2016 till 2019. “As a rule, unitary enterprises depend on government funding. No secret that lots of small unitary enterprises are affiliated with the top management of state corporations”, Alexei Vedev notes.
The number of commercial corporate entities has decreased by 21.8%. Notably, the number of public joint-stock companies fell by 50%, while that of nonpublic ones increased 39.9%.
Nonpublic joint-stock companies have enlarged and consolidated, Alexei Vedev notes. “In Russia, even publicly traded companies may have insufficient transparency and a small portion of equities in a free-floating. The stock exchange is largely used for the redistribution of assets, rather than for attraction of funds”, the expert explained.