Business in russia is suffocating as a result of war and taxes
Sanctions and the “war economy” continue to destroy russian business. In 2026, entrepreneurs are preparing for another blow – a tax increase that the kremlin justifies by the need to fill the military budget.
▫️According to data from the russian central bank, most companies plan to raise prices to survive in the new conditions. It is expected that within the coming months the cost of goods and services will increase by 4–9%, with the highest increase in retail trade.
▫️The Center has already written that in September business activity of russian companies sharply declined. The war has become the main “tax” for russia, taking away resources, basic stability, and the future. While the state pours trillions into the “defense industry,” russian business has found itself in a dead end with no opportunities for development. Entrepreneurs are forced to raise prices, reduce production, and lay off workers, while investments are “fleeing” the country.
In the modern russian economy, business does not create the future – it tries to survive by financing the kremlin’s aggression. Under such conditions, talking about “growth” or “innovation” is no longer possible: ahead lies the cost of war: stagnation, shortages, and the gradual winding down of entire industries.
