Tightening sanctions, high interest rates and tax increases have resulted in the deterioration of the financial results of almost all of Russia's largest enterprises.
Three quarters of Russian business titans recorded at the end of 2025 a decline in revenues and profits or losses — reports the Vedomosti daily, citing the companies' financial reports.
In total, the 28 largest companies lost 16.7%. revenues (they decreased by 8.6 trillion rubles, i.e. approximately PLN 428 billion at the current exchange rate), 30.8 percent net profit (it decreased by 1.9 trillion rubles, i.e. approx. PLN 94 billion) and 20.1 percent. EBITDA (earnings before interest, taxes and costs decreased by 3 trillion rubles, i.e. approx. PLN 149 billion).
On an annual basis, the profit of the oil company Rosneft decreased almost fourfold, the profit of the petrochemical enterprises Gazprom Neft and Tatneft – twofold. The Lukoil oil company recorded a loss of 1.06 trillion rubles (PLN 52 billion) for the first time in three decades of its history.
Losses increased in the case of coal companies (Meczeł – twice, Raspadskaya – by 28%). Magnitogorski Kombinat Metalurgiczny and Rusal also recorded losses, and the profits of Severstal and NLMK fell by 4.7 times and twice, respectively.
The era of struggle for survival
Russian Railways ended the year close to a net loss (the monopoly's profit decreased 22 times), and Aeroflot lost 65%. profit. The largest transport operators ended the year with a net loss: Sowkomflot, managing the so-called fleet of shadow tankers, lost $648 million. (PLN 2.3 billion), and the Fesco group – 3.2 billion rubles (PLN 159 million).
For companies, this means the arrival of an era of struggle for survival, notes Piotr Arronet, chief analyst of Ingo Bank. As the expert explains, the indicators are falling a direct consequence of tightening sanctions, falling raw material prices and shrinking external sales markets.
The deterioration of financial results of large industrial enterprises is directly related to the decline in production volumes in the relevant industries, says Natalia Churkina, an analyst at the Institute of Comprehensive Strategic Research. For example, steel production fell by 5% during the year and car production by 12%.
21 out of 28 major industries ended last year in the red. Raw material extraction decreased by 1.6%, metallurgy decreased by 2.1%. For the first time in 15 years, food production also began to decline – by 0.5%.
The situation is more difficult than in other industries – especially those that focus on final production and technologically advanced products – notes Czurkina.
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It hasn't been this bad for a long time
Among large enterprises with annual revenues from 2 billion rubles (PLN 99 million), 156 thousand companies happened tax debtorsand within a year their number increased by 47%. Investment activity in industry has fallen to its lowest level in 16 years, according to a survey conducted by the Institute of Economic Forecasts of the Russian Academy of Sciences.
According to a survey by the Russian Union of Industrialists and Entrepreneurs last year, only 19 percent companies continued their investments as usual. Every third (33%) reduced them significantly, the same number slightly, and 15%. completely froze all projects.
Many industrial plants of strategic importance for cities, as well as enterprises in mono-industrial cities, have already transferred employees to part-time jobs. In the second half of 2026, companies will most likely be forced to start layoffs – says Alexander Murychev, vice-president of the Russian Union of Industrialists and Entrepreneurs. — The only visible prospect for many enterprises today is a reduction in production, a reduction in employment, and, in the most critical situations, unfortunately, also bankruptcy, he adds.
The decline in corporate profits is reflected in the budget, which for the first time since Soviet times allocates every third ruble to war. In the period January-April budget deficit increased to 5.8 trillion rubles (PLN 288 billion) and exceeded the annual plan by 1.5 times. Due to the financial problems of enterprises, the state treasury may lose 500 billion rubles (PLN 24 billion) in VAT and 100 billion rubles (PLN 4 billion) in income tax this year – write experts from the Gaidar Institute.
An increase in taxes to cover budget holes will further worsen the financial situation of enterprises. — Profits in 2026 continue to decline, many private companies no longer have the reserves of strength, small businesses are struggling to survive, so any additional fees will only worsen the situation, and some may even face bankruptcy, warns the director of investments at the Astra management company, Dmitry Polevoy.
I’m Ashley Davis as an editor, I’m committed to upholding the highest standards of integrity and accuracy in every piece we publish. My work is driven by curiosity, a passion for truth, and a belief that journalism plays a crucial role in shaping public discourse. I strive to tell stories that not only inform but also inspire action and conversation.
