According to the Security Service of Ukraine, mass bankruptcies are expected in the construction sector of Russia. Approximately 20% of developers in the country are on the brink of bankruptcy due to a sharp decline in sales and significant increases in interest rates. It is forecasted that this share may increase to 30% in the near future.
The situation is particularly difficult for companies specializing in the construction of affordable housing for the general population. More than 19% of developers are already pushing back the deadlines for the completion of their projects, turning them into 'problematic'.
'The industry suffers from low demand, limited government support, and a drain of resources for the war against Ukraine. This has led to a decline in sales, an increase in debts, and a freeze on construction. Investments in real estate fell by 44% in the first half of 2025,' the intelligence pointed out.
The banking sector has complicated conditions for borrowers, rejecting more than half of credit applications in June. Even clients with an impeccable reputation face insurmountable barriers when purchasing housing, as the real cost of a housing loan, including all additional expenses, is at least 25% per year.
According to intelligence, the government of the Russian Federation is considering the possibility of introducing a moratorium on bankruptcies of developers, external restructuring, and creating temporary state funds to complete problematic projects in the construction sector. At the same time, an alarming increase in non-performing corporate loans in the construction industry was emphasized.
The emergence of mass bankruptcies among developers poses a threat to the Russian economy due to the sharp decline in sales and risks in the banking sector. The government of the Russian Federation is already taking steps to prevent a crisis by considering the introduction of a moratorium on bankruptcies and other measures. All of this indicates serious difficulties that have affected the country's construction sector and may have a significant impact on its economy as a whole.