INSUBCONTINENT EXCLUSIVE:
exceeding two-thirds of their pre-tax profits (EBIT) at the end of 2024, compared to just 10% a year earlier, Vedomosti cited analysts at
the Center for Macroeconomic Analysis and Short-Term Forecasting (CMASF) as saying in an analytical report.The most affected sectors include
financial balance (profits minus losses) fell by 17% year-on-year during the first 10 months of 2024, translating to a loss of nearly 5
trillion rubles ($51 billion).Coal companies, hit by international sanctions and declining exports, have accumulated 80 billion rubles ($823
Shopping malls, burdened by tax hikes and rising loan costs, are also under threat, with 800 potentially facing bankruptcy
Other vulnerable sectors include road carriers, with 30% at risk of insolvency, road construction firms, which have seen revenue halved,
about 30 airlines and the IT industry.A credit squeeze has already taken hold, the CMASF experts said, as new loan issuance to key economic
sectors plummeted by 30-50% in November and December.Borrowing on the debt market has also become increasingly challenging
these factors creates significant refinancing difficulties for borrowers with high debt burdens
estimates, Russian companies are due to repay a record 7.5 trillion rubles ($77.2 billion) in bonds in 2025, with 2.6 trillion rubles ($26.7
billion) due in the fourth quarter alone
A cascade of defaults could trigger a market chain reaction, the CMASF cautioned
corporate debt woes.The CMASF is a government-aligned think tank that is headed by the brother of Defense Minister Andrei Belousov.
