Deep crisis in the Russian Federation: industry and business faces difficulty

Russian Finance Minister Anton Siluanov told President Vladimir Putin that the growth of the Russian economy in 2025 can be slowed down almost twice - up to 1. 5%, writes The Moscow Times. Initially, it was expected that the gross domestic product (GDP) of the country would increase by 2. 5%. However, the new forecast showed a significant decrease. For comparison, in 2024 the Russian economy showed an increase of 4. 1%.

The decline in growth will also affect the non -irregular industry, which increased by 8. 5%last year. In 2025, this sector is expected to increase by only 3%. In total, industrial production will increase by only 2%, which is much lower than 2023-2024, when an increase was from 4. 3%to 4. 6%. One of the reasons for slowing growth, according to Siluanov, is the rigid monetary policy of the central bank.

The Bank of Russia has increased the interest rate to the level of the early 2000s to restrain inflation after the economic "overheating" caused by military expenditures. Over the past three years, Russia has spent more than 20 trillions of rubles on military needs, which has caused a sharp jump in prices. According to Rosstat, in the first half of 2025 the economy increased by only 1. 2%, and in the second quarter the growth rate was only 1. 1%.

The industry showed an increase of 2%, which is much lower in 4. 6% last year. Real salaries in the country increased by only 3. 8%, while 2024 this figure was almost twice as high as 10%. Most Russian companies are preparing for a further fall in the economy: by the end of the year, 57% of enterprises are expecting a decrease in indicators, reports the Center for Clearing misinformation.

However, only 28% of entrepreneurs hope to restore the growth of the economy, while the rest do not see clear prospects. Business recognizes that 90% of companies were forced to look for new partners and suppliers, and many have failed. The Kremlin's expectations that the losses from war and sanctions will be able to compensate for the so -called "friendly countries". Many Russian businesses have had to reduce staff, and the scarcity of personnel only exacerbates business problems.

CPD experts say that the pessimistic sentiment of entrepreneurs contrasts sharply with the Kremlin's statements about "economy stability" and "adaptation to sanctions". Despite the soothing rhetoric of propaganda and Vladimir Putin himself, entrepreneurs clearly understand that war and international isolation are increasingly undermined by the economy, and prospects remain gloomy.

The Russian railway giant "RZHD" has encountered serious financial difficulties that directly affect the company's employees. According to the Center for Combating Misinformation, for several months of the staff of the central office and regional departments have been forced to take two unpaid "vacations" on a monthly basis. There is no formal contractions in the company yet, but this event is in fact a hidden way of saving on personnel against the background of acute instability.

"RZHD" loses its profit, and the volume of transportation continues to be reduced. Experts say that the situation in "RZHD" reflects the broader problems of the Russian economy. Business reduces production, abandons logistics, and seeks opportunities to save on everything that is not critical. Sanctions, the loss of international markets and the mobilization of resources to the front destabilize even strategic government corporations.

Despite the loud statements that international sanctions are allegedly not affecting Russia's economy, reality looks different. At the beginning of the year, the coal mining industry faced the overproduction crisis, and by the summer similar problems covered metallurgy. In July, steel production in the country fell by 10. 2% - more than in June 2022, when the decrease was 6%. The decline has touched all major manufacturers, reports The Moscow Times.

The Magnitogorsk Metallurgical Combine, one of the largest in Europe and the second largest in Russia, reported on a decrease in steel production by 18% and cast iron by 9%. The Mechel group recorded a sales of steel products by 11%. Pipe metallurgical company (TMK), the largest manufacturer of steel pipes in the country, has lost 18% of pipe sales and almost 22% for seamless products. The financial consequences were tangible: TMK received a net loss of 3.

2 billion rubles (about $ 40 million), "Mechel" - more than $ 40 billion ($ 500 million), and MMK and Seversstal recorded a negative cash flow of 4. 8 billion ($ 60 million). The Russian cellulose and paper industry is experiencing unprecedented difficulties: the country's largest enterprises work at damage, accumulate debts and are forced to stop production. According to the Foreign Intelligence Service of Ukraine, the problems of the industry affect both the financial sphere and social aspects.

Employees are faced with salary delays, and after their dismissal, they are delayed or left without them. In addition, enterprises are involved in mass trials. In particular, the largest forest industry of PJSC "Segezh Group" declared a net debt of 147. 9 billion rubles. At the same time, his revenue in 2024 increased by 15 % and amounted to 101. 9 billion rubles. Attempts to attract investments worth 113 billion rubles in June 2025 were unable to change the unprofitable dynamics of the company.

In the Leningrad region alone, more than 300 arbitration cases for the total amount of 72 billion rubles are conducted against the holding. It should be reminded that it became known that US President Donald Trump is ready to move to the "second stage" of sanctions against the Russian Federation, because Russia continues the war in Ukraine and, as before, brutally fired Ukrainian cities.