The business environment in Russia began to deteriorate in the second half of 2024. The Macroeconomic Research Center of Sberbank announced that, this year, Russian companies are ceasing their activities en masse due to real economic difficulties, and not for formal administrative reasons.
According to The Moscow Times publication, this conclusion was formulated following the analysis of data from the Federal Tax Service of Russia on the registration and deregistration of companies over the past ten years.
From formal closures to a real economic crisis
According to the cited source, in the past as well, the number of companies struck off in Russia exceeded that of newly established firms. However, in most cases, this phenomenon was due to administrative reasons — over 80% of the liquidated companies either no longer operated, or provided incorrect data to the authorities.
This year, the situation has significantly changed, as the number of closures determined by the actual state of businesses, and not by formal reasons, has considerably increased. According to Sberbank’s estimates, their number has grown from about five thousand to 12,000-15,000 organizations per month.
The authors of the study specify that the number of closures has increased both due to company reorganizations and liquidations carried out without bankruptcy procedures, and especially due to the voluntary cessation of activity by small and medium-sized enterprises, at the decision of their founders.
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