Russian company profits fall, making debt repayment ever harder
The combined financial result of Russian companies fell to 12 trillion rubles in the first half of this year. In the first nine months, 33 companies have technically defaulted on bonds.
Russia's economy continues to suffer from its war against Ukraine and the sanctions that followed. A slowing economy, falling profits and high interest rates are hitting many Russian companies that carry debt. The Latvian news portal TVNET reported this on 7 November 2026.
Profits are shrinking
The net financial result of companies, calculated as profit minus losses, was 12 trillion rubles in Russia in the first six months of this year, almost 132 billion euros. That is one trillion rubles less than in the same period last year and three trillion rubles less than in the first half of 2024.
Consequences for debt servicing
Companies therefore have less and less money and fewer sources from which to cover expensive loans. This has already led to a number of cases in which firms have failed to make payments on their bonds. In the first nine months of this year, 33 companies have technically defaulted, meaning they failed to meet their bond payment obligations.
The article's headline says that 200,000 Russian companies lack the money to repay their debts and that problems will only grow. The source text does not explain that figure in more detail.
Overall, the picture described is one in which high borrowing costs and shrinking profits are squeezing the financial room of Russian companies at the same time, and this is also showing up in the bond market.
