In 2025, the Russian economy faced a significant crisis that had long been postponed. Despite claims of resilience to sanctions and successful adaptation, real economic problems became apparent early in the year.
The first signs appeared in consumer spending. While previous years saw a boom, in 2025 demand dropped sharply. This was especially evident in retail, with hundreds of stores—particularly in the clothing and footwear segments—forced to close. Major chains like GLria and Kusvil reduced dozens or even hundreds of outlets.
The main reasons are rising prices, uncertainty about the future, and more expensive loans. People started saving more and avoiding non-essential purchases, resulting in decreased sales of electronics, home goods, and cosmetics. Seasonal factors played a minor role, but the chief causes were higher prices, increasing loan costs, and a riskier environment.
Overdue consumer debt rose significantly, exceeding 1.5 trillion rubles by year-end. In response, banks tightened lending, limiting access to affordable loans. Even as nominal incomes grew, Russians chose to spend less and keep more savings in bank accounts.
Alongside retail, the food industry slowed. Food production was down about 6% for the year, and investment in the sector almost halved, reflecting weak demand and cautious business expectations.
The crisis also hit companies: more were running losses and experiencing payment delays, including state sector contracts. As purchasing power dropped, the country moved from an illusion of resilience to the reality of economic exhaustion.
Thus, 2025 may be remembered as the year Russia’s economy laid bare its systemic vulnerability—with rising prices, debt, and stagnating consumption as the main trends.
