November 2, 2025
The Russian economy is showing a systemic decline, the extent of the losses can no longer be hidden, - SZR thumbnail
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The Russian economy is showing a systemic decline, the extent of the losses can no longer be hidden, – SZR

In particular, the decline is observed in the coal industry, the service sector, metallurgy and energy.”, — write: www.unian.ua

In particular, the decline is observed in the coal industry, the service sector, metallurgy and energy.

photo ua.depositphotos.comThe situation in the coal industry among the Russian economy is particularly revealing / photo ua.depositphotos.comThe Russian economy is entering a phase when even official statistics cannot hide the scale of the problems. The net profit of enterprises during the eight months of 2025 decreased by 8.3%, which indicates a systematic increase in business activity. This is reported by the Foreign Intelligence Service of Ukraine.

“The credit market, which should be an indicator of trust, shows the opposite: the share of problem borrowers among legal entities has reached 23%, and 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 report emphasized.

As SZR writes, the situation in the coal industry, which until recently was considered one of the “pillars” of Russian exports, is particularly revealing. In particular, the share of unprofitable enterprises in this area increased to 67%.

“The net loss for January – August reached 263.2 billion rubles, increasing in just one month by 38.2 billion. The profit fell in half, while the losses increased 2.6 times. The industry, which should have brought foreign currency, is turning into a black hole for the budget,” added the intelligence.

The situation in the service sector is also not better. In particular, Pochta Rossii announced a 4.5% drop in revenue from key services, and a 9.3% drop from financial intermediation.

“Gross profitability decreased by 2.5 times, and the loss from sales increased by 5.7 times – to 10.7 billion rubles. The company explained this by “changes in the operating environment”, but the dry numbers 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 wording”, – added the SZR.

At the same time, the metallurgical company “Nornickel” begins to decline: net profit for nine months has decreased by 39%, while expenses have increased by 34%; through rate hikes. As noted in the intelligence, the simultaneous decline in production of nickel, copper, palladium and platinum indicates that the company is losing ground in the global market.

“Gazprom’s result also has a symbolic appearance – a net loss of 170.3 billion rubles in nine months. For the company, which for decades was the main donor to the budget, this is not just a financial failure, but a strategic reversal: the resource that was supposed to guarantee stability now itself needs support. Russian Railways was also not left out – the loss of 4.2 billion rubles only adds to the general picture of decline,” – emphasized messages

The Foreign Intelligence Service concluded that all these data indicate that the Russian economy is losing its ability to generate income in strong sectors. In particular, the growth of the debt burden, the drop in production and the unprofitability of key corporations indicate that the crisis is not a temporary failure, but the norm.

The economy of the Russian Federation – the latest newsEarlier, The Telegraph wrote that the war between Russia and Ukraine is draining Putin’s economic resources. The publication’s columnist emphasized that the Russian economy is already feeling the strain.

In particular, the war is costing the Russian government colossal sums, quite possibly over $500 million a day, with 40% of the federal budget now going to defense.

At the same time, Foreign Affairs emphasized that the Russian economy is on the verge of collapse, but Moscow cannot stop fighting. The publication adds that Moscow can neither sustain military spending indefinitely nor safely transition to a civilian economy without demobilization and some easing of sanctions.

Analysts believe that the paradox of the military economy of the Russian Federation is that it is simultaneously strong and fragile. Therefore, the US and Europe must act now: using their advantages while Russia remains constrained, not waiting for the Kremlin to get back on its feet.

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