Tatarstan is anti-leader in Volga region in number of closed organisations in March-June

After the beginning of the special military operation and the following blow of sanctions, the economy of Russia started rebuilding — Russian analogues are replacing foreign companies, like it happened to McDonald’s, while habitual products are brought through a parallel import mechanism. No matter the adaptation to the reality, a crisis is still seen — Russian businesses have been impacted, many companies have started to close.

This has touched Tatarstan too, which is developed in many ways. According to the analytic service of FinExpertiza audit and consultancy chain, the number of business players has noticeably increased in the republic.

More than in 11 Far East regions and 7 North Caucasian regions

4,152 profit organisations closed in Tatarstan in four months after the beginning of the special operation. It is almost a fifth part of all the companies of the Volga Federal District that exited from the market. Tatarstan turned out to be a leader in the Volga Federal District in number of closed companies.

11,331 commercial companies closed in the Volga Federal District in March-June. It is nearly 19% of the total number of companies that ceased operations in Russia — they amount to 113,532, which is 17,5% more than during the same period in 2021. This number doesn’t include reorganised companies, noted FinExpertiza.

“Though there were much more closures since the beginning of the spring than during the same period in 2021, they didn’t reach the level of 2020 before the coronacrisis when 137,900 companies closed from March to June,” said FinExpertiza’s President Yelena Trubnikova. She specified that most closed companies are, first of all, the result of the removal of fly-by-night companies and inactive businesses from the roster of the Federal Tax Service, not a decline in entrepreneurs’ activity.

So in 68,7% of cases, companies were removed because of wrong information, another 16,7% left the roster as inactive legal entities — the so-called “abandoned businesses” that haven’t submitted a tax report in the last year and haven’t had transactions. And only 14,5% of closed organisations stopped working according to their owners’ decision, including 2,2% became bankrupts.

Tatarstan is the only region in the Volga area where the number of closed commercial organisations in March-June surpassed the bar of 4,000, only Samara Oblast turned out to be close to it. In most Volga regions, this number didn’t exceed even a thousand. The lowest number of companies was registered in Mordovia — fewer than 200.

The situation with closed companies in March-June in the Volga area looks the following way:

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

In number of closed commercial organisations in March-June 2022, the Far East Federal District including 11 regions outran Tatarstan. 3,668 companies stopped existing in four months. 1,233 of them are in Primorye Krai.

The North Caucasian Federal District including 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 commercial organised closed there.

The smallest number of companies that closed after the beginning of the special operation was registered in Chukotka Autonomous District, just six. Moscow became the leader where 30,303 organisations stopped working in March-June. In Saint 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 commercial organisations were registered in Tatarstan in March-June. It is the biggest number among Volga regions, in most of them it wasn’t above 1,000.

In the Volga Federal District in general, 11,955 new companies were registered since the beginning of the special operation. It is more than in the Ural and Siberian federal districts altogether. By the way, the Volga Federal District is a union of 14 Russian regions, while the Ural and Siberian districts are 16.

As for companies that opened in March-June, the situation in the Volga area looks this way:

• 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 commercial organisations were registered in March-June in Russia. In some regions, the number of new companies exceeded the number of those closed. This is, for instance, Chukotka where 14 new companies appeared against six that closed.