Recent reports indicate that the Russian economy is entering a phase of systemic crisis, marked by significant reductions in corporate profits and increasing financial instability across key sectors. This assessment, attributed to the Foreign Intelligence Service of Ukraine (SZR), was published by Gazeta.ua.
Widespread Corporate Profit Decline
The aggregate profit of Russian enterprises reportedly decreased by 8.3% during the first eight months of 2025. This downturn is paralleled by growing instability in the credit sector. The proportion of problematic corporate borrowers has reached 23%, leaving approximately 165,000 companies unable to service their debts, as detailed by Gazeta.ua.
For more context on the ongoing conflict impacting Russia’s economy, you can read about Russian Missile Strikes on Ukraine’s Energy Infrastructure Reach Two-and-a-Half-Year High.
Challenges in Key Industrial Sectors
Coal Industry Vulnerability
The coal industry, previously a substantial source of foreign exchange for Russia, shows particular vulnerability. It is reported that 67% of companies in this sector are operating at a loss. From January to August, the accumulated losses in the coal industry exceeded 263.2 billion rubles, increasing by 38.2 billion rubles in a single month. During this period, the industry’s profits reportedly halved, while its losses surged 2.6 times, according to Gazeta.ua.
Service Sector Downturn
“Pochta Rossii” (Russian Post) registered a 4.5% decline in revenue from its primary services and a 9.3% drop from financial intermediation. Gross profitability for the company reportedly fell by 2.5 times, with losses from sales increasing 5.7 times to 10.7 billion rubles. The company attributed these financial setbacks to “changes in the operational environment” and faces a liquidity crisis, as its short-term liabilities surpass current assets by 25.6 billion rubles, a fivefold increase from the previous year, Gazeta.ua reported.
Metallurgy and Energy Losses
Similar trends are observed in metallurgy, where “Nornickel” reported a 39% decrease in net profit over nine months. Expenses rose 34% due to increased interest rates. Decreased production of nickel, copper, palladium, and platinum further indicates a reduction in global market positioning. Energy giant “Gazprom” also recorded a net loss of 170.3 billion rubles over nine months. For a company historically identified as a major contributor to the state budget, this represents a significant shift, based on the analysis cited by Gazeta.ua. Additionally, “RZD” (Russian Railways) reported losses of 4.2 billion rubles.
Another related development on the ground involves Ukrainian Forces Reportedly Conduct Widespread Strikes on Russian Infrastructure and Military Targets.
Entrenched Economic Crisis
The Ukrainian Foreign Intelligence Service concludes that these data points collectively suggest Russia’s economy is experiencing a widespread inability to generate profit, even in sectors traditionally considered robust. Rising debt, production cuts, and declining incomes reportedly indicate that this economic crisis is becoming an entrenched reality. These economic trends present a broader context for understanding the nation’s resource allocation and capabilities.