20 February 2026
More than half of large Russian companies ended 2025 with declining profits, reduced or completely frozen investment projects, and many are preparing to lay off employees, the Russian Union of Industrialists and Entrepreneurs warned.
According to a survey by the Russian Union of Industrialists and Entrepreneurs, only 19% of companies continued investing as usual last year. One in three (33%) reduced their investments “significantly,” the same number reduced them “slightly,” and 15% completely froze all projects.
Three-quarters of RSPP survey participants (72%) complained of rising accounts receivable—that is, non-payments by counterparties. State corporations are primarily failing to pay on contracts, the survey found.
62% of civilian enterprises experienced a decline in profits in 2025, and the share of unprofitable companies increased, stated RSPP Vice President Alexander Murychev. “A liquidity crisis and non-payments are growing. Costs are rising dramatically. “Given that the situation for these indicators has been deteriorating throughout 2025 and continues to worsen this year, businesses are gradually depleting their own resources, which could allow them to continue operating,” Murychev said.
Many city-forming enterprises, as well as those in single-industry towns, have already transferred their employees to part-time work, and in the second half of 2026, according to Murychev, they will most likely be forced to begin layoffs. “The only visible prospect today for many businesses is a reduction in production, staff, and, in the most critical situations, unfortunately, bankruptcy,” Murychev said (quoted by Reuters).
According to Rosstat , from January to November of last year, the net profit (profit minus losses) of Russian businesses fell by 5.5%, to 25.43 trillion rubles. Oil and gas companies experienced a 55% drop in profits, automakers saw their profits plummet fourfold, and coal companies posted a record net loss of 334.9 billion rubles. Of the 28 industrial sectors, 21 ended the year in the red. And of the seven that showed growth, three were related to the defense industry.
The government forecasts an acceleration in economic growth this year from 1% to 1.3%. But in reality, the economy could fall into recession, according to Oleg Vyugin, a professor at the Faculty of Economics at the Higher School of Economics. Russia enters 2026 with higher taxes and high interest rates; this is compounded by the problem of shortfalls in oil and gas revenues due to the ruble exchange rate, export restrictions, and discounts of up to $29 per barrel, Vyugin notes.