Net profit of Russian companies decreased by 77% in August

ruble

The net profit of Russian companies, after a sharp rise in January and February, fell by 77% in August 2015 comparing to the same period a year ago, writes “Kommersant” with reference to the data from Rosstat (Russia’s statistics agency – RRT).

As the newspaper notes referencing to the study that was not published yet, a devaluation shock in July and August together with the exhaustion of cheap imports has sharply increased costs of processing companies.

The reason for the rapid growth in February-April in export sectors was devaluation (so the nominal ruble profits grew rapidly), the newspaper notes. In the inner-oriented industries profit growth was due to higher selling prices, since the beginning of the year companies had reserves of raw materials purchased before prices of imports raised.

According to the newspaper, the October polls of the industry show a continuing decline of optimism because of the low level of domestic demand and the uncertainty of the economic situation.

Source: http://www.rbc.ru/rbcfreenews/562d9ded9a79477e2ab2e6fe