Vladislav Grigoriev19:00, 02.05.26

The Hudson shopping mall in Moscow reflects some of the most visible manifestations of Russia’s economic problems.

After a full-scale invasion of Ukraine, the Russian economy has refocused on massive military spending and increased oil exports, but it is starting to show signs of growing strain. Russia’s GDP shrank by 1.8% in the first two months of 2026. Even Kremlin dictator Vladimir Putin has acknowledged the problem.

“Statistics show that economic growth, unfortunately, has been slowing for two months in a row,” Putin said at a government meeting on economic issues in mid-April.

What can a shopping mall in Moscow say about Russia’s economic problems?

According to CNN , the Hudson shopping mall, which opened in Moscow with great fanfare in 2014, reflects some of Russia’s most visible economic problems. The mall has few operating stores left and even fewer shoppers.

Some employees at the Hudson shopping center told reporters about the decreasing flow of visitors. For example, a cashier at a branch of one of the largest Russian retailers named Ivan said that the average number of transactions has decreased noticeably in recent years.

Ivan showed reporters the screen of his cash register, which showed just 13 transactions per day, totaling 3,417 rubles (about $45). He emphasized that in better times, the number of transactions would be closer to 300.

“”Hudson” looks semi-apocalyptic. The shopping center is so large that you can get lost and get tired walking around it. It seems like it was built and designed for a huge flow of people, but I haven’t seen anything like that,” Ivan shared with reporters.

Journalists contacted the shopping center administration for comments. They were told that some of the premises were supposedly being renovated and new tenants were coming in, but the publication emphasized that they had not noticed either.

In addition, the mall’s website advertises retail space for rent at astonishingly low prices, starting at 1 ruble (about $0.01) per square meter. Journalists noted that many of the empty stores previously housed Western brands that left after Russia’s invasion of Ukraine.

Two women working in a souvenir shop told reporters that very few customers are coming into their shop now.

“We are actually using this store as a warehouse. After 2022, purchasing power has decreased. We no longer believe that the situation will improve. We just hope that it will not get worse,” said one of the women.

The second woman added that prices for everything are rising every day, but salaries are not. According to the employees, their manager is barely coping with the increased tax requirements.

“The owner is running around like crazy because taxes were raised this year, and now he’s having trouble collecting money to pay them. It’s very difficult for entrepreneurs right now,” one of the women told reporters.

The boom cycle is over.

The publication recalled that in 2025, income tax and profit tax were increased in Russia, and from January 1, 2026, value added tax (VAT) was increased to 22%.

Ruben Enikolopov, a researcher at the Barcelona School of Economics, told reporters that at the start of the full-scale invasion of Ukraine, the Kremlin had low public debt and large reserves, and was pumping money into the economy through military spending.

“It works for a while, but it can’t last forever. Government spending helped the economy, but now the boom cycle is over. Reserves have dwindled, and the money has to come from somewhere, hence the tax increase,” explained Enikolopov.

The expert noted that Moscow benefited from high energy prices during the war in the Middle East, but Ukrainian attacks on the Russian supply chain have reduced the amount of oil that Russia can export.

The publication added that last month, Russia’s Economic Development Minister Maxim Reshetnikov acknowledged that recent tax changes had affected business. He noted that Russia had relied on its reserves, but now those reserves are largely depleted.

The rich get richer and the poor get poorer

The publication noted that restrictions on the Internet and mobile communications only add to the problems of doing business in Russia. A sales manager named Oksana from St. Petersburg shared with reporters that these restrictions make it difficult for customers to contact the car repair company where she works or place orders.

“I’m a sales manager and I need to meet with clients in person on the road, but sometimes internet outages force me to work from home to have access to Wi-Fi. The whole world is ordering online, and there are days when customers simply can’t technically place an order or make a purchase,” she said.

Moreover, journalists drew attention to the fact that, according to Forbes Russia, the combined fortune of Russian billionaires has increased by 11% over the past year.

“It’s no secret: the war has deepened inequality among the Russian population. We see the rich getting richer and the poor getting poorer,” said Alexandra Prokopenko, a research associate at the Carnegie Russia-Eurasia Center in Berlin.

Lyubov Sergeevna, a resident of the city of Golitsyno in the Moscow region, told reporters that most people here live on low incomes. She and her husband live on a pension, which totals about 64,000 rubles a month (about $854).

“The two of us somehow manage. If I were alone, I would have to pay 8,200 rubles for an apartment… It’s harder for me. I’m pessimistic about prices,” Lyubov Sergeevna told reporters.Read also:

Despite economic problems, the woman, in a conversation with journalists, stated that she supports a “special military operation” (a full-scale war against Ukraine).

“We will endure for the sake of a good cause, there is nothing left,” she told reporters.

Putin acknowledged the beginning of a recession in the Russian economy

Recall that earlier, Russian dictator Vladimir Putin stated at a meeting on economic issues that in January 2026, Russia’s GDP was 2.1% lower than a year ago, and industrial production decreased by 0.8%.

Putin added that the Russian government needs to return the country “to a trajectory of sustainable economic growth.”

(C)UNIAN 2026