Izvestia reported that the share of unprofitable businesses in Russia has reached its highest level since the pandemic lockdowns of 2020, with over 30% of companies now operating at a loss. This marks the first time since the pandemic began that such a significant portion of the country’s corporate sector has experienced financial difficulties.
The report attributes this surge in corporate losses to the unprecedented wartime pressures facing Russia. These pressures include sanctions from Western countries, disrupted supply chains, and the costs associated with maintaining military operations in Ukraine. As a result, many businesses have struggled to maintain profitability, leading to widespread financial strain across the private sector.
Industry experts suggest that the situation could worsen if the conflict continues, as companies may face increasing costs and reduced consumer spending. The government has yet to announce any major economic stimulus measures to address these challenges, leaving many businesses to fend for themselves in a highly uncertain environment.