Increasing bankruptcies and rising inflation: Russia’s economic situation is worsening

The Foreign Intelligence Service of Ukraine reported a deterioration in the economic situation in Russia, including a decline in business activity, rising inflation expectations, and an increase in bankruptcies. According to intelligence data, business and the population are increasingly pessimistic about the prospects for the Russian economy.

This was reported by the Foreign Intelligence Service of Ukraine.

According to the SZRU, the business climate indicator calculated by the Central Bank of Russia fell to minus 3.6 points in June, compared to 0.9 points in May. This is the lowest figure since spring 2022. Both assessments of the current situation and company expectations have worsened, and a decline was recorded in most industries and among enterprises of various sizes.

The intelligence agency also noted that inflation expectations are rising in Russia. According to monitoring data from the Russian Central Bank, companies’ price expectations increased by 4.4 percentage points in July, to 20.2 percentage points.

In addition, according to a survey by the Levada Center, public sentiment is deteriorating. The consumer sentiment index has been declining throughout the year and at the end of June fell below the 100-point mark that separates optimism from pessimism. Over the past year, the indicator has decreased by 23 points, 9 of which in the last two months.

The SZRU reported that the corporate sector is also facing growing financial problems. In the first half of the year, the number of legal entities declared bankrupt increased by 10.8%, and the number of new bankruptcy cases by 20.9%. At the same time, the number of notifications of intention to initiate bankruptcy proceedings exceeded the figure for 2025 by 43%, and 2024 by 83%.

Despite economic difficulties, the Russian government is declaring a need for additional labor. In particular, Russian Labor Minister Anton Kotyakov reported that the country’s economy will need about 3 million workers, operators of production facilities and machines over the next 6 years.

The Foreign Intelligence Service also drew attention to the projected 60% growth in profits of Russian pawnshops in 2026, noting that this is happening against the backdrop of the worsening economic situation of the population and business.

It was previously reported that representatives of big Russian business believe that continuing the war against Ukraine will only deepen the country’s economic problems . In private conversations, they call a cessation of hostilities the only real way to avoid a serious crisis.

Recall that Ukrainian attacks on Russian territory have reached a record level, particularly on Russian oil refineries, which threatens to further reduce oil refining, which is already at its lowest level in the last 16 years. There is also a threat of a growing shortage of fuel, the demand for which increases in the summer.

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