Top 10 Russian non-commodity and non-financial companies

A large number of world-class enterprises operate in Russia. Mostly the main positions in many ratings are occupied by companies specializing in raw materials or financial activities. However, along with such large commodity companies as Gazprom, Rosneft, Lukoil, as well as financial companies such as Sberbank and VTB, other companies are also actively operating. This article will focus on the most significant non-commodity and non-financial companies in the Russian market.

10. Mercury Retail, revenue 12.6 billion dollars

Mercury Retail is a holding company in the form of large convenience store retail chains. The basis of the assortment is made up of everyday products at affordable prices. The company owns two main chains: Krasnoe&Beloe and Bristol. In total, Mercury Retail owns 15,000 stores located in 88 regions of Russia. Mercury Retail ranks 3rd in terms of revenue among Russian retailers, 1st in sales of alcohol, beer and tobacco products, and also ranks 1st in the “ultra-convenience” segment.

As a leader in the compact store format, the company strives to provide stores close to home, relevant assortment for everyday shopping at the best prices, and fast service.

9. Rosoboronexport, revenue 12.7 billion dollars

JSC Rosoboronexport is the only state-owned company in Russia specializing in the export and import of products, defense and dual-use services, and technologies. In 2000, the federal state unitary enterprise Rosoboronexport. Rosoboronexport is responsible for the implementation of the state policy in the field of Russian-foreign military-technical partnership. In 2011, 100% of the shares of Rosoboronexport were bought out by the non-profit state company Rostekhnologii.

The company occupies a leading position in the global arms market. All Russian weapons officially allowed for export, Rosoboronexport has every right to supply to the world market. Major customers are India, China, SAR, Venezuela, Vietnam and Iraq.

8. Inter RAO, revenue 13.4 billion dollars

JSC Inter RAO UES is a diversified energy holding engaged in the production of electricity, electricity supply, heating, conducts international trade, and is also engaged in engineering, design and creation of energy infrastructure. Inter RAO controls a portion of energy, thermal companies, power plants, network operators and energy traders in Russia and abroad. It is a monopolist in the export and import Russian electricity markets. The company owns 22 power plants from Kaliningrad to Transbaikalia. Inter RAO provides more than 10% of all electricity in the Russian Federation, ranking third in terms of installed capacity.

The main shareholders of Inter RAO are Russian state-owned companies. The key shareholders of Inter RAO are Rosneftegaz - 27.63% (a state-owned company also owns a stake in Rosneft), FGC UES - 8.57%, International Rao Capital - 29.56% (a treasury stake owned by the company itself), in free circulation is 34.24%.

Since October 2021, Inter RAO has increased electricity supplies to China by 90% above the plan under a 25-year agreement with the State Grid Corporation of China in 2012.

The company is actively implementing projects abroad. In particular, at the moment, together with Mongolia, Inter RAO is implementing a project to upgrade and expand CHPP-3 in Ulaanbaatar; in 2018, the company implemented a project for the reconstruction of the Naglu hydroelectric power station in Afghanistan commissioned by Da Afghanistan Breshna Sherkat; In 2017, Inter RAO reconstructed the Gorazal TPP in Bangladesh.

7. Rosseti, revenue 13.6 billion dollars

PJSC Rosseti is a Russian grid operator, which is one of the largest international energy enterprises. ROSSETI's transmission lines are 2.37 million km. Transformer capacity of more than 802 GW is provided by 517 thousand substations. The state property management body of the Russian Federation owns more than 88% of the shares, that is, the state owns a controlling stake in Rosseti.

PJSC Rosseti introduces innovations in the backbone grid and distribution complex. The company focuses its attention on such areas as energy saving, energy efficiency, partnership with foreign companies. In particular, Rosseti is implementing the Digital Transformation 2030 project, which provides for the introduction of Industry 4.0 and a large-scale increase in operational efficiency through digitalization.

6. Norilsk Nickel, revenue 15.2 billion dollars

Norilsk Nickel (until 2016 it was called Norilsk Nickel) is the largest mining and metallurgical company in Russia, the main production of which is located in a mine near the Yenisei River. Norilsk also has non-ferrous metal mines at Nikkor, Zapolyarny, Monchegorsk on the Kola Peninsula, Haryavart in Western Finland, South Africa and Botswana and Western Australia. It is the world's largest nickel and palladium producer and one of the ten largest copper producers in the world. It accounts for about 18% of world nickel production, about 2.5% of copper production, almost 50% of palladium production and about 13% of platinum production.

As of early 2019, Russian oligarch Vladimir Potanin's Olderfrey Holdings Ltd effectively controlled the company (35.95%). Oleg Deripaska's Rusal owns 26.25%, and the rest of the papers are in free circulation. In mid-2022, Rusal and Norilsk Nickel resumed merger talks, which is associated with the inclusion of Vladimir Potanin in the UK sanctions list.

5. Rosatom, revenue 17.1 billion dollars

Rosatom, the State Atomic Energy Corporation (Rosatom), is one of the world's technology leaders with capabilities in and out of the nuclear field and business partners in 50 countries. Rosatom was founded in 2007. The company includes 400 firms, including research organizations, nuclear weapons factories and the world's only nuclear-powered icebreaker fleet. Rosatom holds a leading position in Russia in electricity generation, about 20% (208.8 TWh) of total generation in 2019.

Rosatom is one of the world leaders in the implementation of projects in the nuclear industry and implements many EPC projects abroad, as it has complete knowledge in every aspect of the nuclear fuel cycle process chain, including the uranium mining process up to the final stage of the life cycle of nuclear facilities.

4. Magnit, revenue 21.1 billion dollars

Magnit is a unique Russian retail company. PJSC "Magnit" is a holding company that specializes in retail trade through the "Magnit" chain of stores. The company ranks second among the leading retail chains in terms of revenue from the sale of food products.

Magnit ranks first in terms of the number of stores and geographic coverage. Magnit uses a multi-format model that includes convenience stores and grocery stores, supermarkets and pharmacies. As of March 31, 2022, the company had 26,605 stores in 67 regions of Russia. The cross-form of the Magnit loyalty program covers more than 61 million people.

Along with the sale of goods, the holding produces food products under its own brand.

3. Rostec, revenue 25.5 billion dollars

Rostec is a Russian state corporation whose main specialization is assistance in the development, production, and supply of defense and high-tech industrial products for civil and military purposes. Rostec invests in strategically important companies.

The organization was established in 2007, uniting 14 holdings (about 700 enterprises): 11 in the defense industry, 3 in civilian areas. Plants and enterprises of Rostec are located in 60 constituent entities of the Russian Federation. Defense, aviation, automobile, electronic, instrument-making and other products of the state corporation are exported to 70 countries of the world. The company supports Russian designers in the high-tech industry in the domestic and foreign markets, develops the scientific and human potential of the country, promotes cooperation with major global and Russian industries.

2. X5 Retail Group, revenue 26.9 billion dollars

X5 Group is a leading Russian food retailer, one of the top 100 global retailers, aiming to become a leader in the development of modern food retail in Russia. It manages such retail chains as Pyaterochka, Perekrestok, Karusel, Chizhik, as well as digital businesses Vprok.ru Perekrestok, 5Post, Okolo and the Food.ru media platform.

X5 stores operate in 7 federal districts (in 67 regions) of Russia.

In total, X5 Retail Group has more than 19 thousand stores. 12.7% is the market share of X5 Group in the grocery retail market, 12.9% is the share of online sales of products in Russia. The company is controlled by the Alpha Group.

Having created a solid platform for further growth and rapid expansion of its activities throughout Russia, X5 is successfully developing a multimodal business model that meets the interests of all buyers and food producers.

1. Russian Railways/Russian Railways, revenue 30.9 billion dollars

Russian Railways or Russian Railways is the Russian state-owned railway company of the Russian Federation, founded in 1992. Russian Railways is one of the most powerful transport hubs in the country, second only to the United States and China in the world. One of the largest companies in the world provides 86,000 kilometers of rail tracks that span 11 time zones and employs over 950,000 people. All shares of the holding belong to the state.

Due to the vast size of the country and rich natural resources, a highly developed railway system is vital to Russia - railways are the main mode of transport in Russia, accounting for about 87% of total traffic in Russia (excluding pipelines). During 2021, Russian Railways sent over 1 billion passengers (+20.8% by 2020). Passenger turnover amounted to 103.4 billion pass-km (+32.4% by 2020).

Railways connect 77 of Russia's 85 regions, serve most major cities, and directly influence economic growth, industrial development, and regional integration.

Russia is a huge market in which large Russian companies operate, and to become successful in the Russian market, it is important to be able to do business with the largest Russian companies.

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