Russian economy meltdown as construction companies plunge into bankruptcy – £900k debt | World | News
This week it was reported that Russia’s oil and gas revenues, which are vital to the economy, will fall by a fifth in 2025.
It is also well documented that sectors such as housing developers and the coal industry are among those hardest hit by rising interest rates.
Another sector that feels the crisis is the construction sector. Russian newspaper Izvestia reported last year that three major firms were plunged into bankruptcy with total debts of around £900,000.
SC Donstroy in the city of Rostov-on-Don went bankrupt after accumulating debts of 11 million rubles (£105,000).
Meanwhile, construction company LLC “STEK” was declared bankrupt last year with debts of 39 million rubles (£373,000).
Stroyproekt Group was reportedly on the verge of bankruptcy, while Regionstroy met this fate with debts of around 43 million rubles (£402,000).
This week Ukraine’s foreign intelligence service said the Russian economy was stuck between recession and rising prices.
They added: “The tight monetary policies of the Russian central bank have effectively suppressed business activity and intensified the recession, which has now taken on a systemic character.
“Additional pressure comes from the budget side. The government reduced incentives through tax changes, and despite the decrease in revenues in 2025, keeping expenditures high led to an increase in the budget deficit.”
