russian Businesses Are Increasingly Unable to Service Their Debts

Over the past week, 27 cases of default were recorded in the russian corporate bond market. This is one of the largest weekly spikes in debt servicing problems since the beginning of 2026.

According to data from the russian analytical rating agency AKRA, 13 new companies defaulted in the first half of 2026, compared to just eight during the same period in 2025.

Debt servicing problems are becoming increasingly widespread across various sectors of russia’s economy. In just one week, four companies – “Atiss” LLC, “Kirillitsa” JSC, “Center-Reserve” LLC, and “L-Start” LLC – defaulted on their obligations for the first time, totaling approximately $5.1 million.

At the same time, the problems of companies that were already struggling with payments are worsening. At least six troubled issuers have defaulted again. In some cases, this involves not only the failure to pay interest on bonds but also the inability to repay the principal to investors. In particular, “Oil Resource” LLC has incurred three technical defaults totaling approximately $2.7 million. At this, the total debt of another troubled issuer – “Eurotrans” – amounts to approximately $443 million.

Another emerging trend is the shift from isolated defaults to debt restructuring. For example, following a series of defaults,” Mikhailovsky Milk Plant” LLC proposed restructuring three bond issues by extending their maturity dates by five years.

Against the background of the deteriorating situation, the central bank of the rf has proposed reforming the mechanism for the collective protection of bondholders. Specifically, the regulator plans to simplify restructuring procedures and lower the voting threshold for adopting relevant decisions.

The rise in the number of new defaults, repeat defaults, and restructurings indicates a systemic deterioration in russian companies’ ability to service their corporate debt.