Russian business loses growth opportunities amid “war economy”

As reported by Ukrinform, this was stated by the Center for Countering Disinformation (CCD) under Ukraine’s National Security and Defense Council in a post on Facebook.

“Sanctions and the ‘war economy’ continue to destroy Russian business. In 2026, entrepreneurs are bracing for another blow — higher taxes, which the Kremlin justifies as necessary to fill the military budget,” the CCD noted.

According to data from the Central Bank of Russia, most companies plan to raise prices to survive under the new conditions. It is expected that in the coming months, the cost of goods and services will increase by 4–9%, with the sharpest rise in retail trade.

Earlier, the Center reported that in September, business activity in Russia had sharply declined. The war has become Russia’s main “tax,” draining its resources, stability, and future.

“While the state pours trillions into the defense sector, Russian businesses are trapped, with no opportunities for growth. Entrepreneurs are forced to raise prices, cut production, and lay off workers, while investments flee the country,” the CCD explained.

The Center emphasized that in today’s Russian economy, business no longer builds the future — it merely struggles to survive while financing the Kremlin’s aggression.

“Under such conditions, there can be no talk of ‘growth’ or ‘innovation.’ What lies ahead is the cost of war: stagnation, shortages, and the gradual collapse of entire sectors,” the statement concluded.

As reported by Ukrinform, Russia’s value-added tax (VAT) increase will lead to rising prices across sectors — from logistics to raw materials.

Photo: freepik