Corporate Debt in the rf Is Rising Steadily

russia’s central bank’s reduction of its key rate to 14% did not make loans cheaper for businesses: short-term loans became only marginally cheaper, while long-term loans actually became more expensive. One of the reasons is the phasing out of preferential lending. Starting in  2025, the government of the rf reduced the limit on new preferential loans for small and medium-sized businesses from $5.9 billion to $1.2 billion per year, reserving support only for select sectors – manufacturing, IT, logistics, and the scientific and technical sectors. Other companies are forced to borrow on market terms.

According to the central bank of the rf, in June the average interest rate on short-term corporate loans stood at 17.1% per annum, while the rate on long-term loans rose to 12.9%. For small and medium-sized businesses, borrowing is even more expensive: 18% and 15.1%, respectively. This is driven by stricter bank requirements for borrowers, high deposit rates – maintained at 11–13% – and companies’ growing reliance on loans to cover operating expenses.

Companies with low profitability and high debt burdens – primarily in the SME segment – are faring the worst. The share of nonperforming loans in this category rose from 5.9% at the beginning of 2025 to 7.6% as of April 2026. In the first half of 2026, russian courts declared 3,547 companies bankrupt – by 10.8% more than a year ago.

russian analysts forecast a further decline in investment in manufacturing, a rise in debt burdens, and a wave of defaults among financially weak companies. Businesses will pass on part of the additional costs to consumers, thereby fueling inflation. russia’s economy is entering a phase of credit stagnation: russia’s central bank’s key rate cut is not leading to cheaper loans or a recovery in investment,  banks continue to keep rates high due to the risk of loan defaults.