Russia’s oil and gas majors generate 50 times as much in revenue as top tech companies

Russia’s oil and gas majors generate 50 times as much in revenue as top tech companies
Russia’s oil and gas majors generate 50 times as much in revenue as top tech companies
By EWDN in Moscow October 1, 2019

Last week RBC, a major business publication, released its ranking of Russian companies by revenue and profit with 34 economic sectors covered, reports East-West Digital News (EWDN).

Unsurprisingly the three top companies in this ranking – Gazprom, Lukoil and Rosneft – are from the oil and gas industry. They are followed by Sberbank, the state-controlled financial giant, and Russian Railways.

Tech companies (which can be found in the “Information technologies” and “Media & Internet” categories) lag far behind these giants. Russia’s largest IT company is National Computer Corporation (NCC), which generated RUB177bn ($2.81bn) in revenue last year.

With some 3,800 employees, NCC is a diversified IT manufacturing and service group. Its flagship is Aquarius, a large IT manufacturers that can release “over 400,000 high-tech devices per year” – from computers and laptops, to data storage systems, to servers, to tlecom equipment.

Russia’s number two tech company is Lanit, a group of 38 entities employing around 11,700 people. These companies operate in IT development, installation, implementation of hardware and software complexes in addition to personnel training. Lanit generated RUB141bn ($2.25bn) in revenue in 2018.

Yandex comes third among Russia’s tech companies with RUB128bn ($2.04bn) in revenues. This is twice as much as much as its rival Mail.ru Group, number four, whose revenues reached RUB66bn ($1.05bn) last year.

Yandex also did better than Mail.ru in terms of net income. The former generated RUB46bn ($730mn) in net income in 2018, up +430% from 2017, while the latter lost more than RUB8bn ($130mn).

Two local subsidiaries of foreign companies are in the top 10 tech companies: Google Russia (nearly $1bn in revenue) and SAP CIS ($560mn).

Almost simultaneously, Forbes Russia published its 2018 list of the 50 largest foreign companies in Russia. The top ten includes four retailers, three car manufacturers, two tobacco companies and Pepsi.

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