Russia Squeezed - Joe Blogs

Russia’s latest economic data is sending a clear warning signal to the country’s business sector.

Producer prices have fallen by 5% year-on-year, meaning companies are being forced to sell goods for less. At the same time, costs are rising sharply. Nominal wages are up 11.8% year-on-year, inflation is running at around 6%, and borrowing costs remain extremely high, with average debt pricing close to 18.8%.

For companies carrying debt, the squeeze is intensifying. Lower revenues, rising wage bills and elevated interest expenses are combining to erode profit margins at speed. Even firms that previously enjoyed healthy double-digit margins could now be pushed into losses under current conditions.

In this video, we break down the numbers step by step and model what these changes mean for a typical Russian business. The results raise serious questions about corporate stability, business closures and the wider outlook for Russia’s economy.

Is this the start of a broader corporate crisis in Russia?

Chapters:
0:00 Intro
0:41 PRODUCER PRICES
4:54 INFLATION
6:32 WAGES
7:23 EXPECTATIONS
7:51 INTEREST RATES
9:35 TAX
10:48 IMPACT
13:25 SUMMARY & CONCLUSION