Tatarstan leads the number of organizations closed in March-June —

Photo: Maxim Platonov (archive)

After the start of the special military operation and the ensuing blow of sanctions, the economy of Russia began to rebuild – Russian analogues are replacing foreign companies, as happened with McDonald’s, while the usual products are routed through a parallel import mechanism. No matter how adapted to reality, a crisis is always visible – Russian businesses have been affected, many businesses have begun to close.

It also affected Tatarstan, which developed in many ways. According to the analytical service of the audit and consulting chain FinExpertiza, the number of commercial actors has increased significantly in the republic.

More than in 11 regions of the Far East and 7 regions of the North Caucasus

4,152 profit organizations closed in Tatarstan in four months after the start of the special operation. Almost a fifth of all enterprises in the Volga Federal District exited the market. Tatarstan turned out to be a leader in the Volga Federal District in the number of closed businesses.

11,331 trading companies closed in the Volga Federal District in March-June. This is almost 19% of the total number of companies that have ceased operations in Russia — they amount to 113,532, which is 17.5% more than during the same period in 2021. This number n ‘not include reorganized businesses, FinExpertiza noted.

Photo: Oleg Tikhonov (archive)

“While there have been significantly more closures since the start of spring than during the same period in 2021, they did not reach the level of 2020 before the coronavirus crisis when 137,900 businesses closed from March to June,” said FinExpertiza president Yelena Trubnikova. She clarified that most of the closed businesses are, above all, the result of the removal of underground businesses and inactive businesses from the list of the Federal Tax Service, and not of a decline in the activity of entrepreneurs.

Thus, in 68.7% of cases, companies were deleted due to incorrect information, an additional 16.7% left the list as inactive legal entities – the so-called “discontinued companies” which do not have not filed a tax return in the past year. and have had no transactions. And only 14.5% of closed organizations ceased to operate according to the decision of their owners, of which 2.2% went bankrupt.

Tatarstan is the only Volga region where the number of closed business organizations in March-June exceeded the 4 thousand mark, only Samara Oblast turned out to be close to it. In most Volga regions, this number did not even exceed a thousand. The smallest number of enterprises was registered in Mordovia – less than 200.

The situation of enterprises closed in March-June in the Volga region is as follows:

  • Tatarstan — 4,152;
  • Samara Oblast — 3,916;
  • Bashkiria — 3,419;
  • Nizhny Novgorod Oblast — 2,480;
  • Perm Krai — 1,729;
  • Omdurtia — 1,492;
  • Saratov Oblast — 802;
  • Orenburg Oblast – 707;
  • Ulyanovsk Oblast – 572;
  • Chuvashia – 562;
  • Mari El—371;
  • Kirov region — 257;
  • Mordovia — 188.

In the number of closed business organizations in March-June 2022, the Far Eastern Federal District comprising 11 regions exceeds Tatarstan. 3,668 businesses ceased to exist in four months. 1,233 of them are in Primorye Krai.

Photo: Maxim Platonov

The North Caucasus Federal District comprising seven Russian regions – Dagestan, Ingushetia, Kabardino-Balkaria, Karachay-Cherkessia, North Ossetia – Alania, Chechen and Stavropol Krai also outperformed Tatarstan. In four months, a total of 2,785 organized businesses have closed there.

The smallest number of businesses that closed after the start of the special operation was recorded in the Chukotka Autonomous District, only six. Moscow became the leader where 30,303 organizations stopped working in March-June. In St. Petersburg, their number turned out to be three times smaller – 10,092.

New players to replace old ones

At the same time, 3,394 new business organizations were registered in Tatarstan in March-June. This is the largest number among the Volga regions, in most of them it was no more than 1000.

In the Volga Federal District in general, 11,955 new businesses have been registered since the start of the special operation. This is more than in the federal districts of the Urals and Siberia. By the way, the Volga Federal District is a union of 14 Russian regions, while the Urals and Siberia districts have 16.

Photo: Rinat Nazmetdinov

With regard to enterprises opened in March-June, the situation in the Volga region is as follows:

  • Tatarstan — 3,394;
  • Samara Oblast — 1,738;
  • Nizhny Novgorod Oblast — 1,557;
  • Bashkiria — 1,349;
  • Udmurtia — 747;
  • Perm Krai – 732;
  • Saratov Oblast — 509;
  • Ulyanovsk Oblast – 445;
  • Orenburg Oblast – 351;
  • Penza Oblast — 294;
  • Kirov Oblast — 273;
  • Chuvashia – 300;
  • Mordovia — 144;
  • Mari El — 122.

In general, 87,607 new business organizations were registered in March-June in Russia. In some regions, the number of new businesses has exceeded the number of those closed. It is, for example, Chukotka where 14 new companies appeared against six which closed.

Tatiana Dyomina

BashkiriaKirov OblastUdmurtiaTatarstan

Rose D. Jones