Russian Companies Posted Record Losses In History

Because of sanctions and problems in the economy.

Russian companies have started to record losses on a massive scale amid persisting sanctions and growing problems in the economy. In January-November 2025, 18.2 thousand organizations reported losses totaling 7.5 trillion rubles. This is a record for all time of observations, wrote "Izvestia" with reference to the data of Rosstat. In the same period of 2024, business losses were estimated at 7 trillion rubles, and in 2023 - at 4 trillion rubles. The share of loss-making companies last year reached the maximum since the pandemic 2020 and amounted to 28.8%.

According to Rosstat data, the largest losses are recorded in manufacturing (particularly in oil refining and metallurgy), wholesale trade and mining (especially coal, oil and natural gas). Real estate developers, transportation engineering and light industry are also experiencing difficulties. The economic slowdown has played a major role in the growth in the number of loss-making companies: while in 2024 GDP grew by 4.3%, in 2025 - by 1%, recalled leading analyst of Freedom Finance Global Natalya Milchakova. At the same time, mining is suffering from sanctions, as well as the strengthening of the ruble, which has hit exporters, said economist Akhmed Yusupov. In turn, in the trade sector, the downturn is caused by high inflation, which has reduced consumer demand, especially in the first half of 2025, Milchakova said.

The main negative consequence of rising corporate losses is the slowdown in economic development, said Vladimira Eremkina of the Presidential Academy's IPEI. In this case, the investment climate worsens, innovation activity decreases, and the competitive environment becomes narrower - large companies with state support begin to play an increasing role, the expert emphasized.

"Massive loss-making enterprises are fraught with deepening of the industry recession, increasing number of defaults on debt obligations and even bankruptcies. Against this background, the quality of products may deteriorate and their competitiveness on both domestic and foreign markets may decrease," Milchakova added.

At the same time, according to her, profit tax revenues, to which the regions are most sensitive, are falling. As a result, the authorities have fewer resources to finance national projects and social obligations, investments in the construction and repair of infrastructure, as well as the development of health care and education, the expert concluded.

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