russia’s Road Construction Companies on the Brink of Collapse: Debts Have Risen by 147% in Half a Year

More than a third of key infrastructure construction companies in the rf, particularly road contractors, are on the verge of bankruptcy. The reason is delays in payments under government contracts, which have only exacerbated existing problems with liquidity and debt burdens.

In an appeal to prime minister of the rf m. mishustin, rspp president a. shokhin called for urgent measures to stabilize the situation, warning of the risk of rapid deterioration in one of the russian economy’s priority sectors.

The financial condition of infrastructure companies is rapidly deteriorating. The cumulative losses of transportation construction companies in recent years have exceeded $3.6 billion (280 billion russian rubles). Nearly 30% of companies are facing high debt burdens and liquidity shortages.

Arrears on government contracts are also mounting: a significant portion of the largest clients have failed to make timely payments on already concluded agreements, forcing contractors to cover cash flow gaps with bank loans.

Among other signs is a sharp increase in accounts receivable. Throughout 2026, they rose by 147.2%: from $2.60 billion (202.5 billion russian rubles) in January to $6.42 billion (500.7 billion russian rubles) in June.

Companies are responding to the shortage of working capital by cutting costs and staff, primarily the payroll. Expensive credit is creating additional pressure: the rf central bank’s high discount rate (14.25%) significantly increases the cost of debt financing.

Under these circumstances, some long-term government contracts have become economically unprofitable; companies are carrying out work based on old cost estimates while financing it with new, significantly more expensive loans.

The crisis in infrastructure construction highlights a side effect of the russian economy’s reorientation toward military needs. Even formally prioritized civilian sectors are facing funding shortfalls and payment delays, while the government is effectively shifting the budgetary burden onto companies and the banking sector.