Russia braces for scaled-back New Year as wallets tighten nationwide, Ukraine's intelligence says
Illustrative photo: Russians are increasingly unable to afford traditional New Year's meals and entertainment (Getty Images)
Russia is preparing to celebrate the New Year amid a noticeable decline in consumer activity, as rising prices force Russian citizens to cut spending sharply, reports the Foreign Intelligence Service of Ukraine.
"There is a general trend toward austerity: the Russians are increasingly refusing to make unnecessary purchases and are limiting themselves to a minimum set of goods and services. The average budget for the 2026 celebrations is about 14,000 rubles, which is almost half of what was planned to be spent in 2025," the report said.
The intelligence service said this dynamic is driven by rising inflation, higher food prices, increased housing and utility costs, and more expensive clothing.
Even the traditional New Year's table is changing. Russians are avoiding delicacies and steering clear of major expenses. Instead, holiday menus are being reduced to simple products that remain relatively affordable.
Interest in alternative and cheaper leisure formats is also growing in Russia. Instead of traveling abroad, Russians are opting to rent country houses within the country. They often do so in large groups to split the costs.
The holiday services market is also experiencing a decline in demand. Event organizers, hosts, and restaurants report fewer bookings, with no demand for high-end options. According to the intelligence service, the average bill for organizing celebrations has increased, while demand for such services has fallen by roughly the same percentage. This indicates extremely cautious consumer behavior.
Beyond these issues, negative social trends have also been recorded amid the overall decline in holiday activity. According to statistics, the mortality rate in Russia during the New Year holidays increases by an average of 24%, peaking on New Year's Eve and Christmas.
"On January 1 alone, about two thousand people die across the country. The main reasons remain alcohol abuse, overeating, and a sharp increase in the number of accidents, injuries, traffic accidents, and domestic conflicts. A separate problem is the surge in suicides, especially among people who spend long holiday weekends alone and depressed," the Foreign Intelligence Service of Ukraine said.
In its assessment, the intelligence service noted that the New Year in Russia is increasingly losing its features as a large-scale and joyful celebration, and is instead becoming a restrained and psychologically tense event.
"Despite their reluctance to completely abandon traditions, most citizens of Russia will welcome the year 2026 in a mode of austerity and growing social fatigue, which clearly reflects the general state of consumer and public moods in the country," the report concluded.
Russia's economy
Earlier, the Center for Countering Disinformation said Russia spent 20% more on its war against Ukraine in 2025 than it had planned.
According to comments from CNN experts, economic problems will not force Kremlin leader Vladimir Putin to come to the negotiating table in the coming years.
For more details on what is wrong with Russia's economy and who keeps it afloat, read RBC-Ukraine's article.
