Russia's key manufacturer of drone and missile components declares bankruptcy

Russian company Monocrystal, which was one of the world's leading producers of synthetic sapphires used in the production of missiles and drones among other applications, is declaring bankruptcy.

Source: The Moscow Times

Details: The manufacturer, which is part of the Energomera concern, notified creditors of its intention to file for bankruptcy with the Arbitration Court of Russia's Stavropol Krai.

As recently as 2022, Monocrystal held a third of the global market for synthetic sapphires, which are used not only in the defence industry but also in the production of protective glass for smartphones and smartwatches.

The company now cites its own insolvency and insufficiency of assets.

As of the end of 2025, Monocrystal's short-term liabilities exceeded its current assets by US$50.6 million, while assets themselves contracted over the year from US$215.5 million to US$182.5 million.

The volume of short-term borrowed funds grew to US$70.7 million, accounts payable stood at US$8.77 million, and long-term liabilities exceeded US$129 million.

Over three years, the company also shed approximately half its workforce – headcount fell from 1,087 in 2022 to 524 in 2025.

The bankruptcy is linked to damage to production facilities in Russia's Belgorod Oblast as a result of Ukrainian attacks, raw material supply disruptions, the loss of the European market and falling demand for Russian electronics in Asia.

The most likely scenario is a deep restructuring of Monocrystal, a change of ownership, or the sale of the sapphire division to a new investor. A chance of saving the company exists thanks to the uniqueness of its products, as Russian experts say.

Otherwise, the Russian market risks losing one of its few high-technology manufacturers of world-class standing.

Background: On the night of 11-12 August 2025, drones attacked the Monocrystal plant in Stavropol in southern Russia.

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