Economic Evaluation of the Production Efficiency of Chemical Substances and Chemical Products in Russia and in the Kemerovskaya Oblast

Abstract

Development of chemical industry in Russia is determined by the availability of the essential national resource sectors. The economic growth rate in the Russian economy depends on the efficient production of chemical substances and chemical products. Fluctuations of financial indicators for the chemical production in Russia in 2012-2017 show a positive trend. The development of the sector as a whole is subsequently affected by economic indicators of individual businesses in the regions. The Kemerovskaya oblast is one of the leading regions in terms of chemical substance and chemical product manufacturing with six chemical businesses operating there. Kemerovo Joint Stock Company Azot is in top five nitrogenous fertiliser manufacturers in Russia accounting for 1/3 of the total caprolactam produced in Russia. The economic efficiency evaluation of the Azot KJSC was conducted. The analysis of the performance of the business based on the processed public accounting data allowed to identify the critical points and growth drivers, the positive trends in enhancing the efficiency of a business and overcoming the crisis (negative net revenues in 2015). Better economic performance of a business finds its expression in the growing output, revenues, profit, rate of return and higher average annual cost of the capital assets The analysis showed that the trend within the chemical industry in the region is similar to the one on the national level.