Russia’s economy is facing a potential surge in corporate bankruptcies, the Vedomosti business daily reported Monday, citing experts from a government-aligned think tank.
The Central Bank’s decision to raise its benchmark interest rate to 21% — its highest level since the invasion of Ukraine — in October 2024 has driven up business debt burdens.
More than 20% of manufacturing companies were paying interest costs exceeding two-thirds of their pre-tax profits (EBIT) at the end of 2024, compared to just 10% a year earlier, Vedomosti cited analysts at the Center for Macroeconomic Analysis and Short-Term Forecasting (CMASF) as saying in an analytical report.
The most affected sectors include investment-intensive…
