Russia’s economically strongest regions revealed

Moscow and the resource-rich Khanty-Mansi and Yamalo-Nenets autonomous regions in the Urals have topped the rankings of the 35 strongest Russian regions in terms of economic development, a study based on data from Russia’s Tax Service and statistics agency Rosstat has found.  

The three regions led the rankings based on the level of wages and the amount of Value Added Tax (VAT) paid, according to figures from the second quarter of 2023.  

While profits decreased for enterprises in some industries during the period in question, wages were on the rise, researchers said in the report published on Monday.  

The largest amount of VAT was collected in the Russian capital, the surrounding Moscow Region, and St. Petersburg. Russia’s most profitable enterprises were in Moscow, Khanty-Mansi Autonomous Region, and St. Petersburg.  

“Moscow’s leadership is obvious. It is a competitive and innovative region with high salaries, where the most profitable companies are located and wealthy people live,” said Georgiy Ostapkovich, head of the Center for Market Research at the National Research University Higher School of Economics.   

“As for the Khanty-Mansi and the Yamalo-Nenets autonomous regions, these are the richest regions in terms of raw materials with developed industry and high productivity,” he added.    

The report also noted that demand for labor in Russia has grown sharply in areas where import substitution is taking place, particularly in engineering, IT, and industry.

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