In the Komi Republic, workers at a plywood mill held a rally over unpaid wages
Employees of the Zheshart Timber Industry Complex in Komi staged a spontaneous protest, demanding payment of three months’ worth of back wages and the nationalization of the enterprise.
According to Novaya Respublika, the plant, owned by businessman Alexander Salayev, effectively ceased operations back in December 2025 due to a lack of raw materials, after which the production lines began to be sold off for scrap metal. The protesters’ attempt to speak with management ended in conflict: the CFO announced to the rally participants that they were being fired and locked herself in her office.
The crisis at the plant is part of a nationwide trend: according to Rosstat, wage arrears in Russia for 2025 increased 2.3-fold, reaching a record 2.077 billion rubles. While Russia is directing colossal resources toward waging war, the civilian industrial sector in the regions is in decline, leaving thousands of people without a livelihood. Oleg Mikhailov, a State Duma deputy from the region, collected 4,000 signatures in support of nationalizing the plant; however, a February meeting between the owner and the workforce yielded no results regarding debt repayment or the resumption of production.
The situation in Komi demonstrates the Russian economy’s inability to maintain stability in single-industry towns amid sanctions pressure and the reallocation of the budget to military needs. Currently, over 14,700 people in Russia are officially classified as victims of unpaid wages, the highest figure in the last ten years. Plywood mill workers continue to insist on intervention by the central government, as the sale of equipment for scrap effectively eliminates any prospect of preserving jobs in the future.
After three years of unexpected economic growth, Russia is facing a sudden slowdown—war costs, inflation, and falling oil prices have begun to weigh on an economy that until recently seemed resilient to sanctions.
British intelligence notes that the demographic crisis in Russia is deepening due to the full-scale war against Ukraine, mass emigration, and significant combat losses. The Kremlin’s efforts to boost the birth rate are unlikely to halt the population decline in the near future.
