Main points
- In 2025, VkusVill closed 286 stores in Russia, reducing the total number by 12.7% to 1,973 points, which is explained by the optimization and acceleration of delivery.
- Russia's budget deficit widened to 3.45 trillion rubles in the first two months of 2026.
“VkusVill” is being closed in Russia / Russian media
VkusVill was the first major grocery retailer in Russia to begin closing its retail network. In 2025 alone, the company closed 286 stores, and there's a reason for that.
Why are VkusVill supermarkets closing in Russia?
The total number of retail outlets of the retailer decreased by 12.7% – to 1973 stores, writes The Moscow Times.
Some stores closed as part of optimization related to “location and assortment,” as well as “acceleration of delivery,” said a representative of VkusVilla. According to him, more than 70% of the outlets that ceased operation were in the format of mini-stores.
Such dynamics of closures is not an isolated case, but a consequence of a general trend , says Polina Afanasyeva, Senior Director, Head of the Research and Analytics Department at CMWP:
- Last year, a number of grocery retailers have already revised their expansion plans in the face of a “tough economic backdrop,” expensive loans, and increased competition from marketplaces.
According to her, the increase in the number of inefficient stores was also influenced by the strengthening of the thrifty consumption model and the slowdown in retail turnover growth.
How can Russia cover its budget deficit?
Russia's budget deficit in the first two months of 2026 widened to 3.45 trillion rubles, or 1.5% of GDP, almost reaching the annual forecast. Economist Oleg Getman adds to Channel 24 that the most critical factor for their deficit, both this year and last, is energy prices. And first of all, oil.
Oleg Getman
Coordinator of expert groups of the Economic Expert Platform
For two months of 2026, the world price of Brent crude oil was at $60 per barrel, and accordingly, the Russian Urals brand could be around $40 per barrel, which is quite close to the cost price. And if this situation had lasted until the end of the year, the consequences for Russia would have been critical.
Oleg Getman says that Russians cover the deficit not only with oil revenues. They do it with internal borrowing and thanks to the reserves of the National Welfare Fund, which they have been accumulating for 20 years.
If we take oil, the discount on it is currently around $20-30, so Russia is not yet earning much due to the increase in world prices.
– he explains.
Instead, the possibilities of borrowing on the domestic market are being exhausted. Payments on them already amount to more than 7% of GDP.
- According to the KSE Institute, the total amount of domestic public debt has almost doubled since the start of the full-scale invasion and reached about 30 trillion rubles in early 2026.
- The Russian Ministry of Finance continues to place bonds, including floating-rate bonds. This makes servicing costs more sensitive to high interest rates.
- At the same time, regional debt is also growing rapidly and has approached 3.5 trillion rubles.
Business problems in Russia
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The number of stores in Russia has decreased for the first time since 2000 due to rising taxes and increased competition. This applies to all retail outlets – from grocery stores near the house, supermarkets and fruit stands to communication salons and clothing stores.
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Seven fashion brands, including Turkish and Kazakh companies, left the Russian market in the first quarter of 2026. Economic realities, the demographic crisis, and competition with “gray” imports are affecting the market, leading retailers to abandon expansion.
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KamAZ is re-introducing a four-day workweek from June 1, 2026 due to the crisis and falling sales. The truck market in Russia has fallen by 40%, and KamAZ sales have fallen by 15%, forcing the company to cut its annual production plan.