Business activity in Russia drops to a two-year low as sales decline

Oleksii Artemchuk — Thursday, 20 March 2025, 16:57

In February, the Russian Small Business Index (RSBI) measuring the activity of small and medium-sized companies in Russia fell to 51.7 points, the lowest level since early 2023.

Source: The Moscow Times

Details: Businesses have been particularly affected by declining sales, with the corresponding index dropping to 44 points, a two-year low. Nearly half (47%) of companies reported a decrease in revenue, compared to 38% in January.

Small businesses and trading companies have been hit the hardest, with more than 50% of respondents reporting falling income.

Banks have also become less willing to provide loans to entrepreneurs. The demand for financing among small businesses has dropped to a record-low 27%, while only 20% of applicants receive loan approvals. The Russian Central Bank attributes this to high interest rates and a reduction in preferential lending.

Background:

The Russian airline Kosmos, owned by the Russian Defence Ministry, has suspended its operator certificate and may face bankruptcy.
Since the beginning of the year, road freight transportation volumes in Russia have decreased by one-third.

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