Russia faces growing economic crisis as construction sector leads in unpaid wages
Wage arrears in Russia continue to rise (Illustrative photo: Getty Images)
The economic crisis in Russia is intensifying. The construction sector tops the list of wage arrears, according to Ukraine's Center for Countering Disinformation (CCD).
Official Russian statistics can no longer hide the worsening economic situation in the country.
According to the data, total wage arrears in Russia reached 1.482 billion rubles (approximately $18.8 million) by the end of April 2025 — the highest figure since 2021.
The Center for Countering Disinformation notes that nearly all cases of delayed wages are due to employers lacking the funds, indicating a systemic crisis in Russia's economy.
Construction sector at the epicenter of collapse
The problems are most severe in the construction industry: two-thirds of all wage arrears are concentrated in construction companies. Previously, the Center had already reported a sharp decline in construction volumes across Russia and a wave of bankruptcies among developers.
"This is a consequence of the systemic crisis in Russia's economy, which continues to deepen," the Center for Countering Disinformation stated.
The financial condition of both businesses and the general population in Russia is rapidly deteriorating, driven by military spending, international sanctions, high interest rates, unaffordable mortgages, and a downturn in the extractive industries.
On top of that comes a drop in budget revenues from energy exports.
According to the Center for Countering Disinformation, this situation is a direct result of the Kremlin's unwillingness to end the war against Ukraine.
Earlier, Reuters reported, citing its sources, that Russian President Vladimir Putin is becoming increasingly concerned about the problems facing Russia's wartime economy.
