The economic crisis in Russia has reached a critical point
In the first half of 2025, over 30% of organizations in Russia are operating at losses, the highest figure since 2020.
According to the Foreign Intelligence Service, over 19,000 Russian companies reported total losses exceeding $62 billion, surpassing the situation in most developed countries.
Most affected industries in the Russian economy
The largest losses are recorded in the coal industry, energy, water supply, and waste disposal. Construction and the production of durable goods—from cars to industrial equipment—remain under significant pressure as well.
The consequences of the economic collapse have a chain reaction—decreased profitability leads to reduced tax revenues, decreased investments, and increased debts.
Forecasts and facts
'As a result, further growth in the share of loss-making companies is expected in Russia,' noted the FIS.
This year's federal budget deficit in Russia could exceed 1.7% of GDP. The projected GDP growth of 1.5% has now been reduced to 1.2%.
In the first half of 2025, the budget received 17.584 trillion rubles, while expenditures amounted to 21.278 trillion rubles. Over 39% of this amount was spent on the war, which is less than in the first quarter.
Since the beginning of the month, Russia has spent over $1.3 trillion on the war in Ukraine and more than $100 million on propaganda on social media and recruiting Ukrainian bloggers.
The spread of losses in the Russian economy indicates the depth of the crisis, which is reaching critical proportions and may have serious consequences for the entire country. The most affected industries indicate systemic problems that require urgent resolution, and the projected increase in the loss-making of enterprises will further deepen economic difficulties.