Financial Crises Deepen for Companies in Russia Amid Economic Slowdown

Crises facing Russian companies are intensifying as the country’s economy continues to slow, according to recent warnings from the Central Bank of Russia.

The report noted that while overall financial stability remains intact, corporate balance sheets are coming under increasing pressure.

The central bank highlighted that crises in credit risk have emerged as the main vulnerability, with previously accumulated risks now materializing.

Higher interest costs, weaker external conditions, and slowing economic activity have combined to strain companies’ financial performance.

Official data showed a sharp decline in net corporate income during the first eight months of the year compared with the same period last year, underscoring the scale of the crises.

Sectors such as construction, oil and gas, and transport have seen a rise in loss-making firms, while the coal industry is under particularly severe pressure.

Large corporations are responding by extending debt maturities, a move that increases overall leverage and amplifies the impact of the slowdown.

Smaller and micro-sized businesses, however, face greater difficulties, raising concerns about broader economic growth if current conditions persist.