Every tenth business in Russia may close in 2021

Every tenth enterprise in Russia may close this year, writes RBC with reference to the monitoring data of the business ombudsman office Boris Titov.

The survey, conducted in early February, was attended by managers and owners of five thousand companies from all Russian regions.

According to its results, more than 40 percent of companies experienced a 1.5-fold drop in demand for goods and services last year. About 60 percent reported a reduction in revenue of more than 30 percent, and 45 percent of those surveyed said they had cut the payroll.

Only a fifth of the respondents did not notice a drop in demand.

But even after the easing of restrictive measures, the demand for goods and services from two-thirds of Russian companies has not recovered.
A third of the respondents (33.1 percent) announced a decrease in turnover in the coming year, while for 27.1 percent it remained at the level of 2020. As a result, every tenth enterprise (9.7 percent) is preparing to close.

Nevertheless, 19.1 percent of the respondents announced a gradual recovery of last year's losses.

As for measures that would help companies, business expects the state to reduce the tax burden or new tax restructuring. This measure was supported by 66.8 percent of respondents, while 46.8 percent called for no more quarantine closures.



Source: RBC

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