Russian economic meltdown as light industry 'collapses' and thousands of firms go bust. Oil prices plunge. Sanctions bite

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Russian economic meltdown as light industry 'collapses' and thousands of firms go bust

The Kremlin is grappling with a growing economic crisis, as Western sanctions bite and oil prices plunge.

New data shows that bankruptcies of Russian companies have almost tripled since the beginning of Putin's full-scale invasion of Ukraine in 2022.

Last year, a whopping 52,000 firms went bust, up from just 18,000 in 2021, when the conflict in Ukraine was still localised in the east of the country.

How Russia is losing the AI race

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How Russia is losing the AI race

Embarrassingly for the Kremlin, Russian AI Isn’t Good Enough for Its Own Disinformation

Is this another reason why Ivan often cannot innovate? 

Russia's sky-high rate of alcoholism

Map of the countries with the most severe alcoholism rates (Russia is the big red country on the map due to its sky-high rate of alcoholism)

 

Even Amid Hopes for End of War, Most Russian Emigrants Say They Will Stay Abroad

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Big problems for Russian economy. Oil prices plummet and 'shipping costs surge'

Urals oil is a reference oil brand used for pricing of the Russian export oil mixture. It is a mix of heavy sour oil from the Urals and the Volga region with light oil from Western Siberia.

Ural crude oil price chart on March 6, 2025:
 

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Russian economy meltdown as oil prices plummet and 'shipping costs surge'

Russia’s Oil and Gas Revenues Dropped by 18% in February, Oilprice.com, March 5, 2025

Russian crude oil prices have fallen below US$60 a barrel, in a major blow for the Kremlin. Revenues from oil and gas are a major source of income for Putin's regime, accounting for between a third and half of Russia's federal budget over the last decade.

The money from these fossil fuels plays a vital role in helping Russia to finance its war in Ukraine. The war is costing Putin over £262million a day, according to a report published last year by a researcher from Germany’s Stiftung Wissenschaft und Politik(SWP). That figure seems only likely to increase, with the Kremlin having allocated £117billion for defence spending in 2025 - an increase of 25% on last year.

For further reading, please read: 

More bad news for the oil seller Russia: Oil markets brace for 2025 collapse as pressures mount on all sides

OPEC+ Caves to Trump Pressure—But Throws Just a Bone, Oilprice.com, March 5, 2025

Diversified economies, resilience and stability

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Russia has had three revolutions in the last 100 years. Could Russia breakup?

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Over 2 million people registered to work in Russia left in 2024. Russia lost workers en mass in 2024

Please read: Over 2 million people registered to work left Russia in 2024. Russia losing workers en mass.