Russian business is shrinking, with nearly twice as many companies folding as starting

Between January and September 2026, Russia has seen 208,500 businesses cease operations while 109,000 new businesses have been started – just under half as many.

Source: The Moscow Times, an independent Amsterdam-based news outlet

Details: In wholesale and retail trade, 68,500 companies were closed and 31,600 set up. In construction, 29,000 businesses ceased operations and 14,300 new ones were started.

The only sector where the number of openings exceeded closures was resource extraction-based industries, with 786 new companies against 776 that closed.

Overall, the average monthly number of new business registrations this year is approximately 30% lower than last year.

The predominance of closures is linked to the rising cost of doing business. As there is limited demand and competition, entrepreneurs cannot fully pass additional costs on to their customers, resulting in lost profits and financial reserves.

Background: In August, the majority state-owned bank Sberbank reported a deterioration in the business situation in Russia. According to its analysts' estimates, the number of business closures linked to actual decisions by entrepreneurs rose from roughly 5,000 to 12,000-15,000 per month.

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