Article
TOP-10 foreign-owned companies in Russia by revenue

Over 1,2 foreign-owned companies operate in Russia. Using the Information and Analytical system Globas, the experts of the Information agency Credinform have analyzed TOP-10 foreign companies by revenue operating in Russia.







Table 1. Revenue and activity of TOP-10 foreign-owned companies in Russia for 2018
Name Revenue, billion RUB Activity
1 LLC AUCHAN 327,7 - 8,6 % Food retailer
LLC ATAC
Ашан
2 LLC TOYOTA MOTOR
Тойота
313,2 + 15,0 % Automobile production
3 LLC J.T.I. RUSSIA
Дж. Т.И. Россия
303,4 + 4,9 % Trade with tobacco products
4 LLC PHILIP MORRIS SALES AND MARKETING
Филип Моррис
296,5 + 7,4 % Trade with tobacco products
5 LLC VOLKSWAGEN GROUP RUS
Фольксваген груп
289,2 + 22,0 % Automobile production
6 LLC LEROY MERLIN VOSTOK
Леруа Мерлен
275,8 + 22,0 % DIY retailer
7 LLC KIA MOTORS RUSSIA & CIS
КИА
232,4 + 36,0 % Automobile production
8 LLC METRO CASH & CARRY
Метро
217,4 - 6,1 % Wholesale
9 LLC APPLE RUS
ЭППЛ Рус
197,2 + 30,0 % Trade with technical devices
10 JSC INTERNATIONAL TOBACCO MARKETING SERVICES
МУМТ
186,6 - 7,2 % Trade with tobacco products

The ranking is headed by the food retailer LLC AUCHAN (327,7 billion RUB). Consolidated revenue of the company includes income of its subsidiary LLC ATAC. LLC ATAC is a discounter of AUCHAN hypermarket, with the internal brand “Kazhdiy Den” («Каждый день») prevailing in the store.

TOP-10 includes three automobile manufacturers: TOYOTA MOTOR (2nd position, 313,2 billion RUB), VOLKSWAGEN GROUP (5th position, 289,2 billion RUB) and KIA MOTORS (7th position, 232,4 billion RUB). Total turnover of these companies exceeded 834 billion RUB, and the rate of the indicator growth is one of the highest. The increase in revenue is directly related to the growth in passenger car sales. Toyota dealers sell about 108 thousand cars, that is 15% more than in the previous period; Volkswagen sales exceeded 113 thousand cars (+ 18%), and KIA MOTORS ranked the second in 2018 by the number of vehicles sold - over 227 thousand units (+ 25%). High demand was recorded for the following model range: KIA Rio, Volkswagen Polo, Toyota Camry, Kia Sportage, Volkswagen Tiguan and Toyota RAV4. Due to COVID-19 pandemic, all enterprises in Russia suspended the assembly of cars, and by the end of 2020, revenue is expected to drop by the average of 30-40%. From January to May 2020, the global automotive industry produced 32 million cars less than for the same period of 2019.

On the 3rd, 4th and 10th positions of the ranking are tobacco companies. Unfortunately, in 2018 Russia led by the number of cigarettes smoked per capita, or about 300 billion pieces, and according to the data of the Federal State Statistics Service (Rosstat) for 2019, about 22,5% of the country's population smoke daily. Due to the large percentage of smokers and high demand for this type of product, the revenue of tobacco companies has been growing for a long time.

The 6th in the ranking is French company LEROY MERLIN VOSTOK (275,8 billion RUB). The company trades in the DIY sector. Leroy Merlin has about 400 hypermarkets around the world, and over 100 of them are located in Russia. The company continues to gain power in the Russian Federation. In 2018, LEROY MERLIN VOSTOK made one of the largest transactions in this segment of the Russian market by purchasing 12 K-Rauta stores. According to the experts, the value of assets amounted to 12 billion RUB.

Food retailer LLC METRO CASH & CARRY is the 7th in the ranking (217,4 billion RUB). The company is engaged in wholesale and small wholesale of food. In Russia, METRO successfully implements “Fasol” franchise program of convenience stores. This project aims at supporting small and medium-sized enterprises. Under the program, franchisee are exempt from paying royalties and franchise fees, and METRO delivers the majority of goods.

APPLE RUS (197,2 billion RUB) closes the ranking. The company is an official distributor of Apple products (iPhone, iPad, Mac, etc.). For six years, Apple has been recognized as the most expensive brand in the world. The company has a huge influence in the global community and is one of the leaders in the field of information, technological and computer developments.

The results of the ranking showed that automotive industry and retailers are successfully developing in Russia. The growth in revenue from automobile manufacturers is connected with the model range being produced. Cars assembled on the territory of the Russian Federation are in high demand among the population, since import premiums, transportation and other costs are not included in their price. However, in 2020, revenue is expected to decrease for all automobile manufacturers.

Following the results of the ranking, a negative trend of growth of tobacco companies’ revenue was revealed. Unfortunately, most of the population of Russia is nicotine addicted that is why three representatives of tobacco products are included in the TOP.

Article
Legislation amendments

Amendments to the Federal Law No. 209-FZ «On development of small and medium entrepreneurship in the Russian Federation» concerning the establishment of the National warranty system of support of small and medium entrepreneurship (National warranty system) were made by the Federal Law No. 83-FZ of 01.04.2020.

According to the Law, the National warranty system is the system of the interacting organizations performing activities for the purpose of the ensuring access of subjects of small and medium entrepreneurship to credit and other financial resources.

Among the participants of the system are: Federal Corporation for the Development of Small and Medium Enterprises (RSMB Corporation), JSC Russian Bank for Small and Medium Enterprises Support and also funds of assistance to crediting, funds of warranties and guarantee funds conforming to requirements to the regional warranty organizations and their activities established by the Article 15.2. of the Federal Law No. 209-FZ of 24.07.2007.

Once a year RSMB Corporation assigns a rank reflecting the measure of financial stability and operational efficiency of the regional guarantee organizations. In the future, the financial support for the regional guarantee organizations will depend on the assigned rank.

RSMB Corporation is responsible for coordinating the activities of the National warranty system participants on providing warranties or independent guarantees.

In general, the amendments to the Law have come into force. The regulations on ranking of regional guarantee organizations will come into force on January 1, 2021.

According to the RSMB Corporation, currently, there are 83 regional guarantee organizations.

The list of legal entities and entrepreneurs which received the government support is available in the list «Grant recipients» of the Information and Analytical system Глобас. The list contains more than 91 thousand of records.