UrBC, Moscow, October 27, 2015. The net profit of Russian companies (excluding small enterprises, banks, insurance companies, and organizations in the civil service sector) is going down; according to Rosstat, the figure went down by 77% in August 2015 compared with one year earlier.

Remarkably, Deputy Economics Minister Alexi Vedev said earlier:
‘We have been criticized for our over-optimistic expectations. Yet our net financial outcome is up by 37% in the eight months of 2015 compared with the eight months of 2014.’
Now Kommersant reports the profit growth rate slowed down to 23.9% in January-August.

In fact, the raw materials-exporting industries’ profit figures kept increasing noticeably in February-April because of the devaluation of the ruble, as the nominal profit soared; as for the domestic market-oriented industries, profit figures rose because companies raised their ex-works prices yet still had some supplies of raw stuffs and materials that had been made before imported items grew more expensive.

Rosstat’s latest data indicate the surge in investment activity throughout August and September (manufacturers buying more foreign-produced machines and equipment) is likely to be short-lived. October surveys show the optimistic feelings have been gradually dying out because the internal demand is so low (this was the reason quoted by 55% of respondents) and because the economic situation still looks uncertain (say 50% of respondents).