According to the National Statistics Committee, in H1 2016, loss-making enterprises increased in number by one-fourth to 1738, making 23% of their total number. Unprofitable enterprises increased in number due to the reduced state support funding and the overall deterioration of the financial situation amid currency devaluation. Some key enterprises may adjust their performance indicators by using administrative methods (resource allocation, debt fixation in the national currency and deferred payments). Administrative pressure on successful enterprise is likely to increase in order to boost fiscal charges. In addition, administrative and criminal prosecution against managers at large profitable non-state enterprises is likely to increase. If current economic trends persist, the number of profitable enterprises may reduce by 10% by the year-end and net profits in the economy may shrink by 20-25% as compared with 2015.
