Russian corporate profitability weakens as unprofitable firms hit 34.4%

Rising share of loss-making companies signals deepening structural stress in the Russian economy, compounding a widening federal budget deficit.

By Handelsavisen Newsroom · Automated 2026-07-29 19:05 UTC · 1 min read

The proportion of unprofitable organizations in Russia climbed to 34.4% in the first five months of 2026, up from 31.1% during the same period last year, according to data from the state statistics agency Rosstat.

The deterioration in corporate health underscores the mounting pressure on the Russian business environment.

5% of GDP. The widening shortfall highlights the difficulty of balancing state expenditures against revenue streams that are increasingly reliant on non-oil and gas sources, which rose 16.

With a growing share of firms operating at a loss, the data points to persistent structural challenges, including supply chain disruptions and the broader economic impact of ongoing geopolitical isolation.

This trend in corporate profitability coincides with significant fiscal strain at the federal level.

Russia’s Finance Ministry recently reported that the federal budget deficit for the first half of 2026 reached 5.73 trillion rubles ($75 billion), equivalent to 2.5% of GDP.

The widening shortfall highlights the difficulty of balancing state expenditures against revenue streams that are increasingly reliant on non-oil and gas sources, which rose 16.3% year-on-year to 14.96 trillion rubles.