In Russia, at least 300,000 businesses may not survive 2026 due to taxes and war - intelligence
Kyiv • UNN
Due to rising taxes and war expenditures, 300,000 micro-enterprises in Russia may close. Large factories are already reducing staff and working weeks.
In 2026, amid increasing tax burden in Russia, another 250-300 thousand micro-enterprises may close, UNN reports with reference to the Foreign Intelligence Service.
Details
The intelligence service notes that the Russian economy is crumbling more and more – resources are absorbed by the defense complex, while civilian sectors remain without funding. The consequences are felt throughout the country: from mechanical engineering to the production of building materials.
Small and medium-sized businesses suffer the most. In 2025, almost half of such enterprises recorded a collapse in profits, and the number of SMEs in the trade sector alone decreased by 11.5 thousand. According to forecasts, in 2026, amid increasing tax burden, another 250-300 thousand micro-enterprises may close.
Already, more than 100 enterprises in St. Petersburg and the Leningrad region have switched to downtime or a reduced working week. From May 1, 38% of the personnel of the Iz-Kartes plant in Kolpino, which produces quarry excavators, are being transferred to a three-day schedule. In Tikhvin, furniture production stopped at the expropriated IKEA plant, which is now part of the Luzales holding, the intelligence service adds.
A similar picture is observed throughout the country. In March, RZD, Magnitogorsk Iron and Steel Works, and Pipe Metallurgical Company announced cuts. Throughout 2025, at least ten large enterprises in the mining, transport, and mechanical engineering sectors reduced personnel or the working week. Among them are the world's largest titanium producer VSMPO-AVISMA, diamond miner ALROSA, cement producer Cemros, AvtoVAZ, GAZ, and KamAZ.
Mass layoffs are still being avoided thanks to the transition to part-time employment, but this is a temporary measure. High credit rates and economic cooling, exacerbated by the costs of the war against Ukraine, limit the ability of enterprises to recover. The situation will only worsen, so companies will have no other choice but to cut staff.