Main points
- Russian companies suffered a record loss of 7.5 trillion rubles for January-November 2025 due to sanctions and the economic slowdown.
- The largest losses are recorded in manufacturing, wholesale trade, and mining.
Companies in Russia suffered a record loss in history / Getty Images
Russian companies have started to record massive losses. Among the reasons are the increase in Western sanctions and the slowdown in economic development: this is facilitated by the significant costs of Russia's war against Ukraine.
How were companies in Russia harmed?
For January-November 2025, 18.2 thousand organizations reported losses totaling 7.5 trillion rubles, writes The Moscow Times.
This is a record for the entire period of observations. The share of loss-making companies last year reached its maximum since the pandemic of 2020 and amounted to 28.8%. The largest losses are recorded in:
- manufacturing (in particular, in oil refining and metallurgy);
- wholesale trade;
- mining (especially coal, oil and natural gas).
Developers, transport engineering, and light industry enterprises also face difficulties.
The economic slowdown played a major role in the growth of the number of loss-making companies: if GDP grew by 4.3% in 2024, then by 1% in 2025. At the same time, mineral extraction is suffering from sanctions, as well as the strengthening of the ruble, which hit exporters.
How are business and industry declining in Russia?
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In Russia, salaries in the IT business have stopped growing due to inflation, which has exceeded salary growth. There are more than 18 resumes per vacancy in the IT sector, which makes it difficult to increase salaries due to high competition.
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The Russian Steel Association is asking the Kremlin to review the excise tax on liquid steel, stimulate domestic metal consumption, and introduce a tariff surcharge on imports of rolled metal. Steel production in Russia has declined, while imports from Kazakhstan and China are growing, causing a crisis in the metallurgical industry.
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Russia is recording its lowest rate of new business start-ups in 14 years. Tax hikes, rising insurance premiums, a slump in the consumer sector, and tight fiscal policies have led to a decline in the number of new businesses, especially in construction, retail, and services.
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Russian industry is on the verge of its worst crisis yet due to Western sanctions, high borrowing costs and a slowing economy. Key sectors such as metallurgy, chemicals and engineering have seen significant declines in production.