Russia’s Unpaid Wages Hit 2.9 Billion Rubles as Budget Strains Spread

1 articles · Updated · The Moscow Times · May 28

2.879 billion rubles in overdue wages were recorded in April, up 35% from March and 94.3% from a year earlier, with 19,000 workers affected after the total surged nearly sixfold since early 2025.
2.092 billion rubles of the arrears were blamed on companies’ lack of funds, and more than 85% was concentrated in electricity and gas supply, construction, and non-resource manufacturing.
787.6 million rubles of unpaid wages were tied to delayed budget funding, up 62-fold in April and more than 3,600-fold year on year; 699.1 million rubles came from local government budgets.
1.5 trillion rubles in combined regional budget deficits last year and a 33% drop in business profits at the start of 2026 point to broader financial stress from sanctions, high borrowing costs and slower growth.
One-third of the wage debt dates back to 2025 and 10.7% has remained unpaid for more than two years, underscoring how localized cash strains are becoming a wider economic warning sign.

With wage debts soaring and news reports vanishing, what is the true state of Russia’s economy?

Russia's war machine is draining its economy. How much longer can it sustain the fight before something breaks?