The kremlin Uses Business Inspections to Replenish the War Budget

In russia, administrative pressure on small and medium-sized businesses is growing, despite an official moratorium on inspections. In 2024–2025, state authorities significantly increased the number of inspections, and as of July, 48 % of companies had already undergone them.

Formally, the authorities explain this step as “protecting consumer rights and the economy”. However, in practice, inspections are increasingly becoming a way to replenish the budget with fines and penalties, as well as a mechanism for tightening control over sectors that the kremlin considers critical.

Activity has increased especially on the part of the social fund, the prosecutor’s office, and the fire service. As a result of the inspections, violations were found at most enterprises, many of which received financial sanctions.

Numerous abuses by inspectors have also been recorded: demanding excessive amounts of documentation, imposing the services of commercial entities, delaying procedures, and imposing fines that are disproportionate to the nature of the violations. In a number of cases, there were direct demands for bribes.

At the same time, russian authorities have significantly cut state support for small and medium-sized businesses, directing resources to the war against Ukraine.