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Russian Companies Are Going Bankrupt Faster as Taxes Rise and Demand Falls
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Nearly 5,400 Russian companies were declared bankrupt in the first nine months of 2026, up 13.3% year on year, as falling consumer demand, high borrowing costs, and heavier taxes strained businesses, The Moscow Times reported on November 4.
Citing Russia’s Unified Federal Register of Bankruptcy Information, the outlet reported that 1,800 companies were declared bankrupt in the third quarter alone, an 18.5% annual increase.
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The number of newly opened corporate insolvency cases rose 23.6% in January–September to 4,600. Procedures involving external administration and financial rehabilitation increased from 39 to 49 over the same period.
Bankruptcy filings are also accelerating. In the third quarter, notices from companies intending to file for bankruptcy jumped 35.6% year on year, while notices filed by creditors increased 13.6%, according to The Moscow Times.
The share of insolvency cases initiated by Russia’s Federal Tax Service rose from 15.6% to 24.2%. Companies themselves initiated 17.2% of cases.
The Moscow Times linked the worsening business environment to weakening consumer demand, elevated interest rates, and a higher tax burden. Russia raised its corporate profit tax last year and increased value-added tax to 22% in 2026 while tightening rules for small businesses.
Bankruptcy and pre-bankruptcy problems have affected companies in information technology, retail, infrastructure, and even firms producing goods for Russia’s defense industry.
“Inflation, volatility in the key interest rate, and more expensive credit have slowly but surely triggered a domino effect,” Anastasia Shamshina, a lawyer and founder of K’AMELAWT , stated.
Russia’s central bank last cut its key interest rate on July 24, lowering it from 14.25% to 14%. The rate has remained unchanged since then, The Moscow Times wrote.
The broader bankruptcy wave had already become visible in Russia’s construction sector. In September, the number of insolvent construction companies was reported to be up 41% year on year, as housing demand fell by as much as 30% to 50% in some regions and high borrowing costs squeezed developers.
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