In Russia, it is predicted that up to a third of small and medium-sized businesses will close
Russian small and medium-sized businesses are in a difficult situation at the start of 2026. According to surveys, 95% of entrepreneurs report that the situation has worsened, whilst three-quarters cite significant difficulties, the Ukrainian Foreign Intelligence Service reports.
A 68.7% of respondents have recorded a drop in revenue since the start of the year, whilst a further 5.5% have already ceased operations. The sharpest decline in demand is observed in the beauty industry, dentistry, and vehicle maintenance and repair. Profitability has fallen most significantly in vehicle repair, healthcare, pharmaceuticals and the hotel sector. In these same sectors, informal employment is on the rise.
82.7% of entrepreneurs have raised their prices, with over half of them increasing the cost of their services by up to 20%. Against this backdrop, experts predict that up to a third of small and medium-sized businesses will close.
Wage arrears in January 2026 reached 1.86 billion roubles, with 40.7% of this amount accruing during that month alone. The construction sector accounts for the largest share of the debt, followed by raw materials processing and mineral extraction.
One of the most notable cases involves the collapse of the construction holding company ‘Novolex’, which owes its employees around 2.5 billion roubles. ‘Alfa-Bank’ is seeking to recover 1 billion roubles from the company; nine bankruptcy petitions have been filed with the courts, and some of the company’s equipment has been seized. The net profit of most of the holding’s subsidiaries fell by 70–90%, whilst Novoleks Trading House ended the year with a loss of 148 million roubles.
In Vorkuta, employees of Severputstroy and Severkomplektstroy are preparing to strike. They were last paid their full wages in December, and their February wages have not been paid. One strike has already taken place. Employees of the ‘Specialised Road Administration’ secured a pay rise through the courts, but have not received the funds; most of them have been dismissed.
Pay issues are also being reported in other regions. Bus drivers in Tyva, Kamchatka and the Omsk region are not receiving their wages, whilst road workers in Smolensk have been campaigning since last year for pay rises and improved working conditions.
