Russia's Highway Builders Warned Of 'cascading Bankruptcies'

Because of non-payment of government contracts.

In Russia, the companies involved in highway construction, following the distressed timber producers, have asked for a moratorium on bankruptcies of market participants, warning of the threat of mass closures, writes RBC. The National Association of Infrastructure Companies (NAIC, unites the largest companies in the industry - Nattsproektstroy, Transstroymekhanizatsiya, Avtoban, etc.) addressed the Russian government with such an appeal. In addition to restrictions on bankruptcy proceedings, the business asks that until the end of 2027 no inspections be conducted against market participants and that their managers not be held criminally and vicariously liable.

Companies in the road construction industry are in a situation of "hidden financial stress", the appeal notes. At the end of three months of 2026, the total accounts receivable of the eight largest members of the association amounted to more than 500 billion rubles. This figure soared by 147.2% in annualized terms amid delays in settlements under government contracts.

In addition, companies are suffering from rising costs and limited access to financing, due to which "cascading bankruptcies" may hit the industry in the next two years, the NAIC said. The Federal Tax Service also demanded that dozens of market participants pay a total of RUB 9.5 billion in taxes to the budget.

You can support the website Charter97.org

MULTI-CURRENCY ACCOUNT FOR ASSISTANCE:

Bank's name: Bank Millennium S.A.
Address: ul. Stanislawa Zaryna, 2A, 02-593, Warszawa
IBAN: PL97116022020000000216711123
SWIFT: BIGBPLPW
Name of the account holder: Fundacja “KARTA ‘97”
Purpose/title of payment: Donation for statuary aims

You can contact us by the e-mail [email protected]