kremlin is sacrificing Russian small businesses to the war
In the first quarter of this year, state support for small and medium-sized businesses in russia dropped by 43% — from 127.8 billion to 72.3 billion rubles (approximately $1.6 billion to $0.9 billion USD). This is even lower than in 2022, the year russia launched its full-scale war against Ukraine.
Starting in 2025, the russian government also cut back preferential loan programs — including the widely used “1764” program for small businesses, which is now accessible to only one in ten companies. Instead of broad support, funding is now limited to a narrow list of “priority” sectors: tourism, logistics, IT, science, and manufacturing.
As the kremlin funnels more funds into the war effort, it treats business like a “cash cow” — squeezing it for resources without concern for the consequences. While support is shrinking, tax pressure is rising, loans are becoming more expensive and less accessible. The continuation of war remains the kremlin’s top priority, even if it means the collapse of entrepreneurship and the middle class.
