Russia Loses 209,000 Small Businesses in Q1 as Closures Jump Nearly 9%
Updated
Updated · Meduza · May 15
Russia Loses 209,000 Small Businesses in Q1 as Closures Jump Nearly 9%
4 articles · Updated · Meduza · May 15
209,000 small and medium-sized businesses shut in Russia from January to March, Forbes Russia reported, citing Kontur.Focus data; the total was nearly 9% higher than a year earlier.
Falling demand, higher taxes, high interest rates, weaker purchasing power and tougher competition drove the closures, with retail, beauty salons and food service hit hardest.
Up to 40% of clothing stores could close in 2026 as mall traffic drops and online marketplaces gain share; 13 fashion brands are seen at risk of leaving the market.
Several chains are already retrenching: Zenden closed 130 of 230 stores, while O’Stin, VkusVill and L’Etoile have also cut locations, underscoring broader pressure across consumer-facing sectors.
As Russian malls empty out, are online giants the only winners in the country's economic crisis?
With thousands of businesses failing, is Russia's war economy sacrificing its own future?
Are Moscow's tax breaks a real rescue plan or a temporary fix for a collapsing private sector?