Growing monopolization of Russia’s industries

Evgeny Minchenko, CEO of Minchenko Consulting Communication Group (political expertise, PR and GR services), had a meeting on Thursday with some members of Belgian-Luxembourg Chamber of Commerce in Russia, to discuss ongoing processes in the national economy. The discussion was moderated by Oleg Prozorov, BLCC CEO.

According to Mr Minchenko, monopolization of Russia’s banking industry is currently quite apparent with three major players (Sberbank, VEB and VTB) expanding their business and increasing their margins at the expense of smaller local banks. Competitive struggle in the top tier is now intensifying over monopolization of digital platforms and Big Data accumulation/control/analysis. The banking industry monopolization process will inevitably advance to a dead end, yet economic power groups fail to perceive the looming dangers.

Other factors outlined by the expert included the government’s bet on largest developers and agricultural holding companies which now enjoy its profound support and subsidies, a growing share of the government- or big corporations-controlled entities in national retail business and international logistics, and high likelihood of legislative restrictions on FDI in local internet providers and of attempts to build a nationwide Firewall isolating the Russian segment of the web.

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