The Crisis in russia’s Industry: Authorities Are Trying to Rescue Struggling Enterprises

Sentiment in russia’s industrial sector is deteriorating. The reason is weak production growth. Enterprises are reporting a decline in consumer interest, scaling back production plans and building up stocks of finished goods.

In September 2026, the industrial optimism index in russia fell by 4 points to -11. The indicator of actual demand trends dropped to -19, whilst production plans fell by 7 points, to 0. At the same time, the assessment of finished goods stocks rose by 5 points, to +6.

Consequently, russian enterprises are experiencing a loss of interest in their products and do not plan to increase production, while the simultaneous rise in stocks merely indicates a slowdown in sales.

“sberbank” PJSC, with its characteristic “russian” optimism, forecasts a 1.1% increase in industrial production in 2026; however, current trends are far from demonstrating the potential to confidently achieve even this modest figure.

Against this background, the ministry of economic development of the rf is proposing to shift the launch of the pre-bankruptcy restructuring mechanism from July 2027 to January 1, 2027. This involves the financial “rehabilitation” of companies drowning in debt, even before they are officially declared bankrupt. Additional “rescue” measures are also being considered for enterprises with debts to the state.

Consequently, russia’s industry is facing a fall in demand and a deterioration in business sentiment, whilst the aggressor state is forced to prop up enterprises in a rush. This trend will force an increasing amount of state and banking resources to be channelled not into development and investment, but into propping up struggling businesses. This will further restrict the opportunities available to russian industry.