The Crisis In The Russian Economy Is Growing
- 20.02.2026, 19:47
More than half of large companies are preparing to lay off staff.
More than half of large companies in Russia ended 2025 with falling profits, cut back or completely froze investment projects, and many of them are preparing to lay off employees, the Russian Union of Industrialists and Entrepreneurs has warned, writes The Moscow Times.
According to an RSPP survey, last year only 19% of companies continued investments as usual. Every third (33%) reduced them "substantially", the same number reduced them "slightly", and 15% completely froze all projects.
Three quarters of the participants of the RSPP survey (72%) complained about the growth of accounts receivable, i.e. non-payment by counterparties. Moreover, state corporations are the first to fail to pay on contracts, the survey showed.
Sixty-two percent of civilian enterprises in 2025 saw their profits fall and the share of unprofitable companies grow, said RSPP Vice President Alexander Murychev. "There is a growing liquidity crisis and non-payments. There is a huge increase in costs. Given the fact that the situation on these indicators has been deteriorating throughout 2025 and continues to deteriorate this year, enterprises are also gradually depleting their own resources that could allow them to continue operations," Murychev said.
Many city-forming enterprises, as well as enterprises in single-industry towns, have already transferred employees to part-time work, and in the second half of 2026, according to Murychev, will most likely be forced to start layoffs. "The only prospect visible today for many enterprises is the reduction of production, employees, and in the most critical situations, unfortunately, bankruptcy," Murychev said.
According to Rosstat, in January-November last year, the balanced profit (profit minus losses) of Russian businesses fell by 5.5% to 25.43 trillion rubles. Oil and gas companies experienced a 55% collapse in profits, automakers - 4 times, and coal companies received a record in the history of the balanced loss - 334.9 billion rubles. Out of 28 industries, 21 ended the year in the negative. Of the 7 industries that showed growth, three were related to the defense industry.
The government forecasts that economic growth will accelerate from 1% to 1.3% this year. But in reality, the economy may fall into recession, said Oleg Vyugin, a professor at the economic sciences department of the Higher School of Economics. Russia enters 2026 with higher taxes and a high interest rate; added to this is the problem of under-recovery of oil and gas revenues due to the ruble exchange rate, export restrictions, and discounts to $29 a barrel, Vyugin lists.