As an extension of limitation of access to potentially “dangerous” information with regard to possible imposition of secondary sanctions by some foreign states, data from the Unified State Register of Legal Entities (hereinafter EGRUL) on companies under sanctions and Crimean legal entities will be closed. The Resolution of the Government of Russia #729 as of June 06, 2019 entitles not to disclose shareholders, management and licenses of mentioned legal entities in EGRUL in following cases:
- existing restrictions from foreign countries and legal entities;
- the legal entity is credit institution for the state defense order;
- legal entities, including branches and representative offices, are located in the Republic of Crimea or Sevastopol.
The final decision on voluntary closure will be made by legal entities through the application. The application form will be prepared by the Federal tax service before September 30, 2019.
About 1000 Russian legal entities are under primary international sanctions imposed by foreign states.
According to the Information and Analytical System Globas, a little over 44 thousand active legal entities are registered in the Republic of Crimea and Sevastopol. Comprehensive information about them is available for subscribers of the System.
Good news at the Russian stock market: MOEX Index has several times updated historical peak in June 2019 and is close to the value of 2800 items. General capitalization of companies amounted to 663 billion USD or 40% of GDP on June, 14.
JSC GAZPROM is the most expensive company of Russia with 84,1 billion USD market capitalization. Besides, monopoly value has on almost 70% increased within a year (s. the table 1). The main reason for increasing quotation prices was reconsideration of dividends for 2018 to the higher side: from 10,43 RUB to 16,61 RUB per share, that exceeded expectations of the shareholders.
Securities of other participants of the ranking also showed positive trends.
If domestic stock market is considered at a global basis, despite significant growth, some peculiar downsides should be mentioned:
- Total capitalization of Russian companies in currency denomination didn’t exceed 100% of GDP till now, as it was in 2007-2008. In other words, Russia is the only large country that did not grow domestic capital for the last ten years.
- Investments in shares are not in mass demand not only for foreign investors but for local ones. Neither companies nor citizens consider securities as instrument for capital maintenance and accumulation.
- Stock market of the RF is limited by twenty liquid securities, majority of them – state companies of fuel and energy complex.
- Russian companies are underestimated. For example, currently, capitalization of Microsoft exceeds 1 trillion USD, that makes it the most expensive company in the world – it is 1,5 times exceeds capitalization of the total stock market of the RF. Besides, assets value of JSC GAZPROM for 2018 was 299,5 billion USD, Microsoft – 258,9 billion USD. Consequently, assets of Gazprom 3,6 times exceed market capitalization, and market capitalization of Microsoft is 3,9 times higher than its assets value.
|Rank||Company||Capitalization on 14.06.2019, billion USD||Capitalization on 15.06.2018, billion USD||Increase (decrease) of capitalization,%||Scope of activities|
|1||JSC GAZPROM||84,1||50,0||68,2||Fuel and energy complex|
|3||JSC ROSNEFT OIL COMPANY||66,3||62,3||6,4||Fuel and energy complex|
|4||JSC NOVATEK||60,8||37,4||62,6||Fuel and energy complex|
|5||JSC LUKOIL Oil Company||59,6||52,9||12,7||Fuel and energy complex|
|6||JSC Mining and Metallurgical Company NORILSK NICKEL||35,4||26,9||31,6||Metallurgical industry|
|7||JSC Gazprom Neft||28,9||23,5||23,0||Fuel and energy complex|
|8||JSC Tatneft||25,6||21,7||18,0||Fuel and energy complex|
|9||JSC NOVOLIPETSK STEEL||16,8||15,5||8,4||Metallurgical industry|
|10||JSC SEVERSTAL||14,4||13,4||7,5||Metallurgical industry|