Russian entrepreneurs face a wave of bankruptcies: businesses have defaulted on loans worth $10 billion

Overdue loans to small and medium-sized businesses in Russia are breaking records. Entrepreneurs in the Russian Federation have overdue loans worth almost $10 billion.

This was reported by the Center for Countering Disinformation.

In Russia, the number of overdue loans to small and medium-sized businesses has increased sharply – the figure is almost $10 billion. This is the highest figure since 2021. At the beginning of 2025, the amount of debt increased by 14%.

“Such an increase in debt is explained by the general slowdown in the economy, high credit rates (23.3% per annum), as well as the increase in enterprises’ expenses for rent, logistics and other resources,” the Central Bank noted.

Russian entrepreneurs are unable to service loans on time, and banks, in turn, are reducing lending volumes.

The small business sector – including shops, cafes, local services – is an important source of jobs. The growing debt burden is leading to business closures, wage delays and staff reductions.

If this trend continues, the situation could lead to a wave of bankruptcies and an increase in unemployment in the Russian Federation.

“The Kremlin continues to drive the economy into a dead end. The war with Ukraine, sanctions, isolation, and rising costs for maintaining the security apparatus – all this hits businesses and the pockets of ordinary people, to whom the Kremlin is indifferent,” the CPD noted.

As a reminder, the Russian Central Bank, in a new macro forecast, admitted that economic growth in the Russian Federation could fall to zero by the end of 2025. This is perhaps the regulator’s most pessimistic forecast in recent years.

As reported, due to the rapid decline in oil and gas revenues and rising costs, the Russian government will make changes to the budget for the second time in a year.

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