Data from Russia’s State Statistics Authority (Rosstat) showed that Russian corporate profits fell 17.2% year-on-year in the period from January to October, reaching 24.25 trillion rubles ($243.72 billion).
Companies achieved profits amounting to 33.3 trillion rubles ($333.4 billion) in 2023, with the Russian economy recovering after contracting slightly in 2022, according to data released yesterday.
With the central bank setting the key interest rate at 21%, many Russian companies are now suffering from high borrowing costs, and some are reducing investments as a result.
Inflation
In another economic indicator, Rosstat reported that the average annual inflation rate in Russia reached 9.5% during the current year, according to weekly data that also showed that the consumer price index rose 0.33% in the week ending December 22.
The data comes after an unexpected decision taken by the central bank last week to keep the key interest rate at 21%, and the bank said that tightening monetary policy provided favorable conditions for reducing inflation towards its target of 4%.
In another context, Rosstat said that Russia increased natural gas production in the period from January to November 2024, by 9.2% on an annual basis, to reach 523 billion cubic meters.
