Profiting from Death: russia’s Funeral Market Catching up with Gold Mining

russia has found a stable source of growth amid economic chaos – and it is, quite literally, a business built on death. In the first months of 2026, the value of funeral services rose by 16%, while the number of orders increased by 6.9%. In the first quarter, the number of new companies in this segment increased by 37.5%. However, official moscow prefers not to comment on why the funeral industry remains one of the most dynamic sectors of the domestic economy.

In 2025, the funeral services market reached 128.3 billion rubles – by 18% more than the previous year (108.3 billion). Taking the shadow economy into account, the actual figure exceeds 250 billion. For comparison: the annual revenue of PJSC “Polus” – russia’s largest gold producer and one of the world’s top five industry leaders – is only slightly higher than this figure. In other words, russia earns nearly as much from burying its citizens as it does from gold mining.

This ratio has inspired two distinct groups of russians. Government officials have seen the funeral industry as a way to plug budget gaps. Starting in 2026, the kremlin lowered the revenue threshold for VAT exemption from 60 million to 20 million rubles – a direct blow to small businesses, particularly funeral home owners. In response, they are splitting their companies into smaller entities to stay below the new threshold and avoid contributing to the budget amid widespread inflation. The price of a coffin, by the way, has already risen by 10%.

Entrepreneurs, however, are registering new entities not just for the sake of fragmentation – some of them are genuinely investing in a sector that, unlike most others, demonstrates stable growth regardless of sanctions, the ruble exchange rate, and market conditions. Demand for funeral services in russia is the only indicator that does not need government subsidies.