Major Businesses In Russia Have Refused To Comply With Putin's Demand
- 3.08.2026, 15:59
Businesses have begun cutting costs at a record pace.
Russia's big business has rejected Putin's demands and calls to launch a new investment cycle to revive the stagnant economy by injecting money into it. Russian businesses are en masse cutting expenses; some of the country’s largest companies are complaining about falling profits, weak demand, expensive loans, a shortage of working capital, and rising delinquencies.
According to a survey by the Russian Union of Industrialists and Entrepreneurs, in July 2026 a record 86% of companies reported cutting costs to “improve business efficiency.” Compared to the April survey, the share of such companies rose by 21 percentage points at once, reaching an all-time high since the war began.
Forty percent of representatives from large companies cited non-payment by counterparties as the main problem facing their businesses. According to Rosstat, the total amount of these non-payments in the Russian economy reached 9 trillion rubles.
One in three companies complains about a decline in demand, while another 27% cite a shortage of working capital.
Instead of investing, businesses are increasingly tightening their belts: cutting staff, postponing projects, and idling production capacity. This year, VTB and Russian Railways announced layoffs. Rosatom announced delays in the construction of nuclear power plants, while the largest metallurgical companies announced the shutdown of some of their production facilities.
According to the Center for Macroeconomic Analysis and Forecasting (CMAFP), civilian sectors outside the military-industrial complex continue to contract—by 4.6% so far. Corporate profits are falling for the second year in a row. But top executives cite “economic uncertainty” as the main factor: hopes for a swift end to the war have not materialized, and rumors are spreading among the public about escalation, mobilization, and a shift toward stricter military control over the economy.
Bloomberg previously reported that Russia’s wealthiest individuals, including billionaires close to Putin, are trying to save their money rather than invest it, moving tens of billions of dollars to Cyprus, the Middle East, and even African countries.
Major Russian businesses have refused to comply with Putin’s demand
Major Russian businesses have begun cutting costs at a record pace, despite Putin’s demands to launch a new investment cycle.