How the kremlin left russian businesses to struggle on their own
In 2024, the issuance of industrial mortgages—a program of subsidized loans to support businesses launched during the full-scale war against Ukraine—plummeted by 75% in russia. The sharp increase in the discount rate forced the program to be significantly scaled back.
▫️ Initially, the russian government aimed to provide businesses with a sense of security amidst the challenges of war. However, it is now clear that the state can no longer sustain industrial support, effectively sending a message to businesses: those in trouble must fend for themselves.
The Center previously reported that construction giant Samolet became the first victim of the record-high discount rate, with the company teetering on the brink of collapse due to skyrocketing credit costs.
