Sole traders in Russia have started going bankrupt en masse

The number of bankruptcies among sole traders in Russia has risen significantly, increasing by 29% year-on-year in the first quarter of 2026 to 8,146 cases.

Source: The Moscow Times, an independent Amsterdam-based news outlet, citing Vedomosti, a Russian news outlet

Details: The figures concern sole traders with debts exceeding RUB 1 million (about US$14,000) who apply to court for a declaration of insolvency.

Meanwhile, the number of bankruptcies between January and March 2026 was 2.6 times higher than in the same period of 2024, when 3,134 cases were recorded, and 3.3 times higher than in the first quarter of 2023, when there were 2,492 cases.

According to Maksim Kachnov, head of the bankruptcy practice at the legal group Grishin, Pavlova and Partners, the rise in bankruptcies among sole traders is a natural consequence of increased tax pressure, falling consumer demand and a high key interest rate.

Background: Earlier reports also noted that a huge wholesale market for expired food products has been expanding in Russia despite legislation banning the sale of expired goods for any purpose.

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