Main points
- Russia is recording the lowest level of new company openings in the last 14 years, with only 173,000 legal entities registered in 2025, and over 230,000 closed.
- Tax increases, rising insurance premiums, a decline in the consumer sector, and tight fiscal policy have led to a decline in the number of new businesses, especially in construction, retail, and the service sector.
Opening of new businesses in Russia has fallen to a 14-year low / Collage of Channel 24, photo Getty Images, Russian media
Russia is seeing its lowest rate of new business start-ups in 14 years, but business closures are increasing, with tax increases and the global economy of Russians adding to the pressure.
Why are there almost no new companies appearing in Russia?
In 2025, only 173 thousand legal entities were registered, and more than 230 thousand were closed, writes the Foreign Intelligence Service.
Construction, development, retail and services were hit hardest, with profitability in these sectors falling sharply due to expensive loans, reduced demand and curtailed investment programs.
Additional pressure was created by:
- increase in insurance premiums;
- increase in the recycling fee;
- a downturn in the consumer sector, especially in offline trade and the automotive business.
Systemic problems in the economy only exacerbate the negative dynamics. Business is facing a tough fiscal policy, increased tax control, and a campaign against the “fragmentation” of companies. In 2026, a further reduction in the number of legal entities, market consolidation, and an increase in the role of state control are expected,
– predicts intelligence.
What are the problems of companies in Russia?
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One of Russia's largest regional grocery chains, Gulliver, is selling part of its business as consumers transition to austerity.
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In January 2026, 45 of Moscow's most popular restaurants closed due to economic difficulties and rising costs. The number of establishments in Russia has generally decreased, with sushi bars and pizzerias suffering the most, while teahouses are showing growth.
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Demand for beauty services in Russia in December 2025 decreased by 25-30% due to economic difficulties and the rising cost of living.
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Five major alcohol producers in Russia have notified retail chains of an increase in the selling prices of their products from January 1, 2026. All due to the increase in excise duties, inflation and increased taxes that Putin introduced to plug the hole in the budget. Alcohol prices in Russia will increase by 10-17%.