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A business survey conducted by the Russian Union of Industrialists and Entrepreneurs (RSPP) for the second quarter of 2025 reveals a shifting landscape of challenges for Russian companies, with financial constraints now rivaling weakened demand as the primary headwind to economic activity.
Evolving Challenges
While a reduction in consumer demand was the single biggest constraint in Q1, it has now been joined by two other equally critical issues in Q2: a lack of working capital and the unavailability of financial resources. Each of these three problems was cited by approximately one-third of surveyed enterprises.
The significance of other constraints has changed markedly. The inability to acquire new equipment and technologies due to import restrictions has doubled in importance, now affecting 18.4% of companies compared to 9.3% in the previous quarter. Conversely, currency instability has become a far less common concern, with its negative impact plummeting from 17.4% of companies to just 6.9%.
Other persistent issues include non-payments from counterparties (over 25% of firms), worsening conditions for raw material supplies (16.1%), and the ongoing impact of Western sanctions (14.9%). Additionally, 13.8% of organizations reported feeling an increased fiscal burden from taxes and other payments.
Corporate Strategies in Response
In response to these persistent challenges, a significant majority of companies (65.5%) plan to cut costs, a strategy that remains consistently popular. The focus of these cuts is primarily on administrative and overhead expenses. However, a notable shift is occurring in spending on personnel; the number of firms considering staff-related cost reductions has risen significantly by 12 percentage points to around 30%.
Beyond austerity, businesses are pursuing adaptive strategies. A third of organizations intend to implement energy-saving and digitalization projects. Furthermore, 25% plan to maintain or even increase their investment programs, though 17% are preparing to cut theirs.
Other planned measures include intensifying production (16.7%), developing programs to substitute imported products (15.5%), and raising prices (14.3%). A smaller proportion of companies are considering more drastic steps like selling non-core assets (11.9%) or reducing production (6%).
Overall Sentiment
Despite these changes in the ranking of specific problems, the overall data for the first half of 2025 indicates a stable yet challenging environment. The report concludes that there are no significant statistical differences in the responses between Q1 and Q2, suggesting businesses are adapting to a "new normal" of persistent external pressures and financial constraints.