Sanctions Are Stifling Key Sectors of russia’s Economy

The financial condition of russia’s corporate sector deteriorated sharply in January–September 2025. The total losses of companies reached $83.3 billion, which is by 25 % more on an annualized basis, while the number of loss-making enterprises increased to 18,400, having added 11 %. Total business profits fell by 7.7 % compared to last year, indicating a systemic depletion of the economy.

The share of profitable companies decreased in almost all industries, with the worst performance seen in the coal industry, energy and gas supply, water supply and waste disposal, oil production, as well as the financial and insurance sectors. The deepening crisis in these spheres is linked to export sanctions, rising logistics costs, and equipment shortages.

Against this background, 39 % of companies report massive payment delays by their counterparties, which is by 13 % more on a quarterly basis. Among the debtors there are state-owned corporations that are not fulfilling their obligations under federal contracts. This creates the risk of a new wave of non-payments, reminiscent of the crisis trends of the 1990s.

In parallel, the volume of non-performing loans of legal entities increased to $132.9 billion, having added 5.5 %. The cumulative growth of loss-making enterprises, deterioration in payment discipline, and increase in non-performing loans signal a systemic crisis in the corporate sector, which may limit businesses’ access to bank financing as early as 2026.