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Journal section "Territorial economy"

The Influence of Western Sanctions on the Ability of Large Russian Non-Ferrous Metallurgy Corporations to Generate Budget Revenues

Malyshev M.K.

Volume 10, Issue 2, 2022

Malyshev M.K. (2022). The Influence of Western Sanctions on the Ability of Large Russian Non-Ferrous Metallurgy Corporations to Generate Budget Revenues. Territorial development issues, 10 (2). DOI: 10.15838/tdi.2022.2.62.4 URL: http://vtr.isert-ran.ru/article/29484?_lang=en

DOI: 10.15838/tdi.2022.2.62.4

Abstract   |   Authors   |   References
In response to the special operation of the Armed Forces of the Russian Federation on the territory of Ukraine, the Collective West has imposed over 10,000 sanctions against Russia in just two months. The restrictions affected almost all economic spheres: banking; export-import operations; government debt and investments; activities of foreign companies in Russia’s territory and much more. Regional budgets, which revenues largely depend on the activities of large export-oriented corporations, were also under attack. Such corporations include enterprises of the metallurgical industry. The sanctions affected the ferrous metallurgy so much that many holdings refused to publish financial results for the first half of 2022. However, the largest holdings of non-ferrous metallurgy presented their results. The purpose of the research is to determine the impact of Western sanctions on the financials of PJSC “Nornickel” and PJSC “Rusal” and the revenues of the budget system of the home regions and the country as a whole. The research object is large corporations of Russia’s non-ferrous metallurgy: PJSC “Nornickel” (Krasnoyarsk Krai) and PJSC “Rusal” (Irkutsk Oblast). The choice of the research object is due to the leading positions of these companies in terms of revenue and export orientation, as well as the availability of published financial statements for the first half of 2022. The article uses horizontal and vertical economic analysis, methods of comparison and communication, content analysis. The research results may be of interest to participants in the educational process, regional authorities, as well as to all persons interested in the industry branch economics

Keywords

financial results, large corporations, non-ferrous metallurgy, sanctions and restrictions