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Russia’s Economic Crisis Deepens: A Third of Companies Operate at a Loss in 2025
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The number of loss-making companies in Russia has risen sharply in the first half of 2025, with nearly a third of businesses now operating at a loss, According to The Moscow Times, citing Rosstat data, on September 2.
The share of unprofitable firms grew by 2.3 percentage points, reaching 30.4%, the highest since 2020, when pandemic-related disruptions forced 35% of companies into the red.
In total, 43,000 companies reported profits amounting to $228.2 billion, while nearly 19,000 reported losses exceeding $62 billion.
Analysts point to a range of sectors struggling with profitability, particularly in coal mining, steam production, water supply, waste management, and transportation. In some industries, such as land passenger transport and scientific research, up to a half and more companies are working at a loss.
“Most developed countries see the share of loss-making companies around 10–20%, but 30% is significant and not unusual for markets in crisis,” said Vladimir Chernov, an analyst from Freedom Finance Global. He noted that it points to systemic problems with the profitability of key industries.
The rise in unprofitable companies is affecting Russia’s economy by reducing tax revenues, slowing investment, and increasing debt levels. This, in turn, is putting pressure on banks and the government, which must provide subsidies to struggling sectors, Chernov noted.
He also said that this trend could lead to more bankruptcies and inflation, as surviving companies raise prices to stay afloat.
President of the Russian Chamber of Commerce and Industry, Sergey Katyrin, warned that continued economic difficulties could lead companies to delay investment projects, equipment upgrades, and technology improvements, especially impacting small and medium-sized businesses.
Previously, it was reported that Russia is rapidly depleting its economic and military resources and could face a severe economic crisis by the end of 2025, according to Oleg Ivashchenko, head of Ukraine’s Foreign Intelligence Service.
