russia’s Wage and Tax Debts Are Growing

At the end of September 2025, overdue wage arrears in russia reached 1.95 billion rubles, which is by 18.6 % more than a month earlier. Compared to September 2024, the amount of debts has quadrupled.

About 75 % of unpaid wages are debts that arose in 2025, and another 20 % are from 2024. The main reason is the lack of own funds in enterprises. The largest debts have accumulated in construction (44 %), mineral extraction (17.5 %), and manufacturing (11.6 %).

Business liquidity problems are also reflected in tax statistics. In the first half of 2025, russia’s federal tax service filed claims with the courts for the collection of taxes and fees in the amount of 15 billion rubles – seven times more than in the same period last year. Companies are increasingly reluctant to pay their tax debts voluntarily, forcing tax authorities to seek enforcement.

The deterioration in business solvency is exacerbated by the economic slowdown, expensive loans, and sanctions pressure. According to data for January–July, companies’ net profit decreased by 8 %, or by about 1.5 trillion rubles in monetary terms. One in four companies reports a sharp increase in non-payments by counterparties.

Against the background of a sharp decline in business profitability, the kremlin continues to raise taxes in an attempt to collect more money to “patch up” the budget. But the attempt turns into a vicious circle: the tax base is shrinking, companies are closing or going into shadow, and the authorities are forced to raise taxes again to compensate for the losses. Strange as it might seem, simultaneously russia plans to issue loans to other countries in the amount of 1.8 trillion rubles (more than $18 billion) – even though domestic debts are growing, and the economy is suffocating from a lack of money.