Rosstat has reported a sharp drop in Russian business profits
The financial performance of Russian companies in 2026 shows a significant decline. In January–February, the aggregate net profit of businesses amounted to 3.4 trillion rubles, which is 33.1% less than in the same period last year.
This was reported by Rosstat.
This refers to the difference between the profits of profitable companies and the losses of those operating at a loss. This rate of decline is one of the steepest in recent years: the figure fell more sharply only in 2022, when the decline was 34.5% amid the start of a full-scale war against Ukraine.
Historical data show that the current decline is comparable to the crisis periods of 2008, 2014, and 2017, when business profitability fell by 30–37%. At the same time, even during the 2020 pandemic, the decline was less severe.
The largest decline in profits was recorded in manufacturing and the raw materials sector:
- manufacturing — down 45%;
- extractive industry — down 32%;
- agribusiness sector — down 38.5%.
The share of profitable companies also decreased—to 63.1% compared to 68.1% a year earlier.
Economists attribute the decline to a number of factors: weaker domestic demand, an increased tax burden, expensive loans, a shortage of working capital, and rising business costs. Regional and sector-specific constraints also play a role, complicating operations for companies in the services and technology sectors.
Analysts note that net profit reflects the overall state of the economy and the accumulation of structural problems across various sectors.
Russia is currently experiencing the largest labor shortage in the country’s modern history, which is already affecting the state of the economy.
