Russian business owners are declaring bankruptcy en masse
22 May 21:59
In the first quarter of 2026, the number of bankruptcies among individual entrepreneurs (IE) in Russia rose sharply by 29% compared to the same period last year, reaching 8,146 cases.
This was reported by The Moscow Times, as reported by "Komersant Ukrainian".
Reasons for the increase in bankruptcies
Increased tax burden
Many analysts believe that the main reason for the rise in bankruptcies is the increased tax burden on small businesses.
Decline in consumer demand
The decline in consumer purchasing power has also negatively impacted businesses, particularly those focused on selling goods and services to end consumers. Amid economic instability, many people are cutting back on spending, which leads to a decline in business revenue.
Read us on Telegram: important topics – without censorship
High key interest rate
A high key interest rate increases the cost of loans, making them less accessible to entrepreneurs who need financial support to develop or sustain their businesses. This forces many to file for bankruptcy.
The number of bankruptcies in January–March 2026 was 2.6 times higher than during the same period in 2024 (3,134 cases) and 3.3 times higher than in the first quarter of 2023 (2,492 cases).
While entrepreneurs are struggling to survive amid the economic downturn, the wholesale market for food products past their expiration dates continues to grow, despite legal bans.
Recall that economist Yaroslav Zhalilo, in an interview with the YouTube channel
Watch us on YouTube: important topics – without censorship
