russian Corporations Are Recording Losses: the Economy Is Showing a Systemic Decline

russia’s economy is entering a phase where even official statistics is no longer able to hide the scale of the problems. The net profit of enterprises for the first eight months of 2025 decreased by 8.3 % – a figure that, in the context of overall dynamics, indicates a systemic decline in business activity. The credit market, which should be an indicator of confidence, shows the opposite: the share of problematic borrowers among legal entities has reached 23 %, while about 165,000 companies are no longer able to service their debts. This is a signal that the corporate sector has lost its financial stability.

The situation in the coal industry, which until recently was considered one of the “pillars” of russian exports, is especially telling. The share of loss-making enterprises here has grown to 67 %. The net loss for January–August reached 263.2 billion rubles, having increased by 38.2 billion in just one month. Profits halved, while losses increased 2.6 times. An industry that should be bringing in foreign currency is turning into a black hole for the budget.

The picture is no better in the service sector. “russian Post” reported a 4.5 % decline in revenue from key services and a 9.3 % drop in revenue from financial intermediation. Gross profitability decreased 2.5 times, while losses from sales rose 5.7 times to 10.7 billion rubles. The company explained this by “changes in the operating environment”, but the dry figures speak for themselves: short-term liabilities exceed current assets by 25.6 billion rubles, which is five times more than a year ago. This is a classic symptom of a liquidity crisis that can no longer be masked by corporate rhetoric.

Metallurgical giant “Norilsk Nickel” is also showing signs of decline: net profit for the first nine months decreased by 39 %, while expenses rose by 34 % due to higher rates. The simultaneous decline in nickel, copper, palladium, and platinum production only underscores that the company is losing ground in the global market.

“Gazprom”’s results are also symbolic: a net loss of 170.3 billion rubles over nine months. For a company that had been the main contributor to the budget for decades, this is not just a financial failure, but a strategic turnaround: a resource that was supposed to guarantee stability now needs support itself. “russian Railways” (RZhD) has not been left out either, with a loss of 4.2 billion rubles only adding to the picture of general decline.

All these data form a single mosaic: russia’s economy is losing its ability to generate profits even in traditionally strong sectors. The growth of debt, the decline in production, and the unprofitability of key corporations indicate that the crisis is not a temporary setback but is becoming the new norm.