Russia sinking into crisis as intelligence reports systemic economic collapse
Illustrative photo: intelligence recorded a systemic collapse of the Russian economy (GettyImages)
Russia's economy has reached a point where even official statistics can no longer conceal the depth of the crisis, according to the Foreign Intelligence Service of Ukraine.
According to intelligence data, the total profit of Russian enterprises fell by 8.3% between January and August 2025, indicating a sharp decline in business activity.
The credit market is also showing signs of distress: the share of problematic borrowers among legal entities has reached 23%, and around 165,000 companies are already unable to service their debts. This means the corporate sector has effectively lost financial stability.
Coal industry
The situation in the coal industry, once a key source of foreign currency for Russia, continues to deteriorate. The share of unprofitable enterprises has risen to 67%, and total losses over the first eight months of the year reached 263.2 billion rubles. In August alone, losses increased by more than 38 billion. Profits have halved, while losses have grown 2.6 times. What was once a profitable sector is turning into a financial burden for the Russian budget.
Service sector
The service industry is facing a similar downturn. Russian Post reported a 4.5% drop in revenue from core services and a 9.3% decline in financial intermediation. The company’s gross profitability fell 2.5 times, while sales losses jumped 5.7 times to 10.7 billion rubles.
Despite official claims of "changes in the operating environment," financial indicators tell another story: short-term liabilities now exceed current assets by 25.6 billion rubles — five times higher than last year. According to intelligence assessments, this signals a deep liquidity crisis.
Metallurgy
One of Russia’s industrial flagships, Norilsk Nickel, is also in decline. In the first nine months of 2025, the company’s net profit dropped by 39%, while expenses increased by 34%. Falling production of nickel, copper, palladium, and platinum confirms the company’s weakening position in global markets.
Energy sector
The situation is no better in the energy sector. Gazprom, which for decades served as the main donor to Russia's state budget, recorded a net loss of 170.3 billion rubles over the past nine months.
"For a company that was supposed to guarantee stability, this is not just a failure — it’s a strategic collapse," the Foreign Intelligence Service noted.
Transport
The transport industry is also struggling. Russian Railways (RZD) reported a loss of 4.2 billion rubles, further underscoring the overall decline of Russia's economy.
Russia's economy in decline
Russia's economy continues to lose stability amid its prolonged war against Ukraine and the impact of international sanctions. Key industries are contracting, while the banking sector is preparing for potential state support to avoid collapse.
On September 4, Sberbank CEO Herman Gref admitted that Russia's economic growth had effectively come to a halt in the second quarter of 2025.
The International Monetary Fund had earlier predicted that after a brief "wartime boom," the Russian economy would return to stagnation and continue to lose ground compared to both developed and developing nations.
According to the IMF's July forecast, Russia's GDP growth is expected to slow to 0.9% in 2025 and 1.0% in 2026, down from 4.1% in 2024.
Despite the Kremlin's attempts to project "economic stability," analysts estimate that Russia is now spending nearly half of its state budget on the war against Ukraine — further deepening its internal crisis.
