{"id":151416,"date":"2026-04-06T15:00:06","date_gmt":"2026-04-06T12:00:06","guid":{"rendered":"https:\/\/ldaily.ua\/?post_type=news&p=151416"},"modified":"2026-04-06T11:29:40","modified_gmt":"2026-04-06T08:29:40","slug":"rosijska-promyslovist-pryskoryuye-padinnya","status":"publish","type":"news","link":"https:\/\/ldaily.ua\/en\/news\/novosti\/rosijska-promyslovist-pryskoryuye-padinnya\/","title":{"rendered":"Russia\u2019s industrial sector is accelerating its decline"},"content":{"rendered":"
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The pro-Kremlin Center for Macroeconomic Analysis and Short-Term Forecasting (CMASF) reports stagnation in Russian industry at the beginning of 2026, despite traditionally optimistic official statistics.<\/p>\n

According to Rosstat, industrial production grew by a combined 1.7% in December\u2013February. However, CMASF estimates paint the opposite picture: after a short-term rise in December, output fell by 0.6% in January and only partially recovered in February. Overall, a decline of 0.3% was recorded over the three-month period.<\/p>\n

\u201cCivilian sectors of Russian industry accelerated their decline at the start of 2026,\u201d the Kremlin-aligned analytical center stated.<\/p>\n

The sectoral breakdown is even more pessimistic. In February, production of construction materials fell by 1.4%, ferrous metallurgy by 1.1%, and machine building by 2.2%. The combined contribution of most industries remains negative at minus 0.8%, including oil refining and metallurgy.<\/p>\n

The S&P Global March PMI index dropped to 48.3 from 49.5 in February \u2014 the lowest level in three months (the 50 mark separates growth from contraction). Output has been declining for 13 consecutive months, while export demand has been falling for five months in a row. Purchasing activity has collapsed at the fastest pace in four years, as companies cut raw material purchases due to declining orders and rising fuel prices. Employment in the sector has been decreasing for the fourth consecutive month.<\/p>\n

Russia\u2019s metallurgy sector, long considered a flagship of the country\u2019s economy and a stable source of foreign currency revenue, has entered a systemic crisis in 2025\u20132026. Profitability across the industry has dropped to 9.6%, below the cost of servicing debt. Ural Steel, a city-forming enterprise in Novotroitsk, a leader in bridge steel production and a key contractor for state defense orders, went from a profit of 11 billion rubles to a net loss of over 22 billion within a year. Tax authorities have been forced to manually defer debt collection under court rulings until the end of April to prevent the plant\u2019s shutdown and the layoff of 9,000 employees. Meanwhile, the metallurgical giant Severstal reported a fivefold drop in profit and a 42% decline in EBITDA.<\/p>\n

Small and medium-sized businesses have been hit by a double blow \u2014 falling demand and rising tax burdens. Nearly half of businesses recorded a collapse in profits in 2025. The number of enterprises in the trade sector alone decreased by 11,500. In 2026, an additional 250,000\u2013300,000 companies could disappear.<\/p>\n

At the same time, wage arrears in Russia increased 1.7 times over the year, reaching approximately 2 billion rubles. According to experts, 99% of delayed payments are due to companies lacking funds. As of the end of 2025, hundreds of thousands of workers were already on forced downtime.<\/p>\n

The only remaining support for production is state financing, but even that is not ensuring sustainable growth. By the end of 2025, Russia\u2019s public debt increased by 21%, or 6.1 trillion rubles, reaching 35.1 trillion rubles. Weakening investment activity and domestic demand are accelerating the transition from stagnation to a full-scale downturn.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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