December 22, 2024
Every fourth shopping center in Russia was on the verge of bankruptcy thumbnail
Economy

Every fourth shopping center in Russia was on the verge of bankruptcy

In the conditions of a sharp increase in costs and increased competition from online sites in Russia, about a quarter of all shopping centers (malls) have reached a pre-bankruptcy state and may close in 2025.”, — write: epravda.com.ua

In the conditions of a sharp increase in costs and increased competition from online sites in Russia, about a quarter of all shopping centers (malls) have reached a pre-bankruptcy state and may close in 2025. The Moscow Times writes about it. Revenues of shopping centers in 2024 fell sharply. The key cause of financial problems, in addition to the departure of some large foreign tenants after the start of the great war in Ukraine, was the rapid increase in interest rates on commercial loans due to the policy of the Central Bank. “Now, it is problematic for shopping centers to close existing credit agreements and new loans are completely unavailable to them. Hence, problems with both profitability and the ability to maintain buildings in proper condition, carry out reconceptualization,” said the managing director of the Russian Council of Shopping Centers (STC) Oleg Voitsechovskyi. Advertising: Vice-President of STC Pavlo Lyulin also reported on the significant increase in the tax burden of shopping centers. Currently, about half of the income of shopping centers goes to taxes, including VAT, social security contributions and property tax. We will remind:Advertisement: The increase in the credit burden after the increase of the key rate of the Central Bank of Russia to 21% and difficulties with servicing debts may lead to mass bankruptcy of shopping centers (shopping centers).

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