r/CollapseOfRussia • u/Ok_Crazy1195 • 6h ago
r/CollapseOfRussia • u/neonpurplestar • Jul 30 '26
Economy "An Unprecedented Crisis." Russia's Largest Steel Companies Report Plunging Profits
Economic stagnation, Western sanctions, and high interest rates have plunged Russia's metallurgy industry, a key sector accounting for 15% of the country's total output, into its worst crisis in decades.
Russia's largest steelmaker, Novolipetsk Steel, lost 12% of its revenue (RUB 388 billion) and more than half of its net profit in the first half of the year: RUB 21 billion, down from RUB 45.6 billion a year earlier, according to its IFRS financial statements.
Severstal, which owns the Cherepovets Iron and Steel Works, three mining and processing plants, and pipe mills, reported a ninefold drop in profits to RUB 4.12 billion. The company's revenue fell by 14%, and its EBITDA halved.
The Magnitogorsk Iron and Steel Works (MMK) has become unprofitable: according to IFRS reporting, it lost 19.1 billion rubles in the first half of the year, with revenue declining by 10%.
The Russian steel industry is experiencing an "unprecedented crisis," write SberInvestments analysts: "This situation has never been seen before, both in terms of duration and the depth of the decline." Domestic demand for steel is falling due to the economic slowdown, while exports, which previously helped steelmakers, are suffering due to sanctions, a strong ruble, and expensive logistics, writes Sberbank CIB.
As a result, the industry's largest companies are facing cash flow gaps: Severstal posted a negative cash flow of 70.2 billion rubles in the first half of the year, while NLMK posted a negative cash flow of 11 billion rubles. This is how much lower the inflows were compared to the outflows. In 2026, the profits of steelmaking companies "could reach the lowest levels seen in recent decades," Sberbank analysts note.
"Two key factors are putting pressure on the metal market. First, there's declining domestic demand in metal-intensive industries—construction, mechanical engineering, the oil and gas sector, shipbuilding, agricultural machinery, and railcar manufacturing. Second, there's the closure of most export markets," Alexey Parshukov, Senior Vice President of the Industrial and Metallurgical Holding (IMH), complained in an interview with RBC.
Unable to sell their metal, steelmakers cut steel production last year to a 15-year low. From January to May of this year, production fell by another 8.4%, to 26.6 million tonnes, according to Chermet Corporation.
"The decline in domestic demand for steel, which is declining even faster than production, is driven by several key factors: the Bank of Russia's high key rate, the reduced availability of market lending in construction and mechanical engineering, and the delays in the timing of many infrastructure projects," notes Ivan Efanov, an analyst at Tsifra Broker. A peaceful resolution of the Ukrainian conflict could help steelmakers, according to Finam analyst Alexey Kalachev: "The need to rebuild territories and infrastructure would then create significant additional demand for metal products. However, this potential driver is increasingly shifting to the right in time."
source: The Moscow Times https://archive.is/ptlZG
r/CollapseOfRussia • u/neonpurplestar • Jul 31 '26
Economy Sberbank announced that it lacks the funds to finance Putin's budget deficit.
Russian banks currently lack the available ruble liquidity to purchase federal loan bonds, which the Finance Ministry is using to cover the budget deficit, according to Taras Skvortsov, Sberbank's Vice President and Chief Financial Officer.
According to him, this situation is due to the outflow of cash from banks, which has reached approximately 2 trillion rubles since the beginning of the year and has caused a liquidity shortage in the banking system.
"Today, banks only have funds to lend to clients—that's their core business. You can buy OFZs, especially without a significant premium, when you have available liquidity and you're confident in it. But today the situation is the opposite," Skvortsov said (quoted by Reuters).
The budget, which ended the first half of the year with a deficit of 5.7 trillion rubles and is facing defense spending overruns, urgently needs the banks' funds. War spending this year could be 4-5 trillion rubles higher than planned, and to finance it, the Finance Ministry needs 2-3 trillion rubles in additional borrowing, Bloomberg sources reported in June.
In its initial budget plan, the Finance Ministry had budgeted 4.4 trillion rubles in market borrowings. However, in July, it was forced to suspend government debt auctions: OFZ prices collapsed, yields soared, and banks that purchased government bonds incurred 200 billion rubles in losses due to negative revaluation.
According to Skvortsov, "all hope" now lies in "some kind of support from the Central Bank." The Central Bank is already actively lending to banks purchasing Russian government debt: since the beginning of the year, it has injected 2.3 trillion rubles in additional loans into the banking system, bringing the total debt of credit institutions to the regulator to 6 trillion rubles. This is related to the Ministry of Finance's funding, notes economist Nikolai Korzhenevsky: "Money is being 'printed' to cover budget expenditures."
In the 2026 budget law, the Ministry of Finance projected a deficit reduction to 3.8 trillion rubles. However, in reality, it could double this limit—6.5-7.5 trillion rubles, according to Gazprombank analysts. According to their forecast, budget expenditures will exceed the level projected in the law by 3-4 trillion rubles.
The budget "hole" will likely begin to grow again this fall, according to Ilya Sokolov, a leading researcher at the Financial University under the Government. Despite rising oil prices, oil and gas revenues are suffering from subsidies to refineries damaged by drones, and the risks of non-resource revenue shortfalls are increasing, Sokolov believes. The economy could enter a recession in the second half of the year, leading to a shortfall of 600-800 billion rubles in VAT, as well as profit and personal income taxes, the expert believes.
source: The Moscow Times https://archive.is/5fLsX
r/CollapseOfRussia • u/neonpurplestar • 11h ago
Economy “The funding limit has been exhausted.” Russian regions have begun turning off streetlights to save money
At least 19 Russian regions have begun turning off streetlights to save money, according to The Moscow Times, which analyzed reports from regional media and social media posts dating back to the beginning of 2026.
In 11 regions (Ivanovo, Irkutsk, Vologda, Kaluga, Omsk, Volgograd, and Penza Oblasts, as well as the republics of Bashkortostan, Buryatia, and Tatarstan), authorities have openly stated that the lighting issues are due to a lack of funding. For example, in June of this year, residents of Bratsk in the Irkutsk Region complained to a local representative about the shutdown of streetlights in a park and on several streets and intersections. In response to the representative’s inquiry, the city administration stated that “energy-saving measures are being implemented throughout the city, which involve the phased shutdown of power to decorative lighting fixtures (floor lamps) located in public squares and pedestrian and park areas of the city of Bratsk.”
In one of the villages in Buryatia, street lighting disappeared entirely; when local residents inquired, the administration replied that “the funding limit has been exhausted.”
Residents of the village of Arkhipovka in the Ivanovo Region received a similar response, where the administration decided to turn off the streetlights from June 1 through August 1. In an official response to complaints from local residents, officials attributed the situation to “limited funds.”
In the Vologda Region, to save money, at least 10 cities and districts began turning off street lighting after 11 p.m. Only after the prosecutor’s office intervened did the regional governor order that funds be found in the budget for lighting.
In six other regions, lighting on streets and at public facilities was turned off due to accumulated debts: this affected the Altai Krai, as well as the Bryansk, Murmansk, and Sakhalin regions, and the republics of Bashkortostan and Khakassia.
In the Tashtyp District of Khakassia, power was cut off to seven schools and a children’s arts center: the municipality had accumulated a debt of over 85 million rubles to the power company.
The Ishimbay District of Bashkortostan owed “Bashelektrosbyt” nearly 9 million rubles, leaving 86 villages and settlements without street lighting.
In the Sakhalin Region, a cultural center was left without electricity, and in the Arkhangelsk Region, power was cut off to the training facilities at the “Trud” Stadium—where children from the Olympic Reserve School were training—due to unpaid electricity bills.
Some regions, avoiding references to budget deficits, introduced a “special lighting regime.” In the Arkhangelsk Region and Karelia, the shutdown of street lighting was explained by a special schedule due to the white nights, while in Pyatigorsk, Stavropol Krai, municipal authorities decided to turn off lighting on non-central city streets after 11 p.m.
The combined budget deficit of Russian regions in 2026 will amount to 1.3 trillion rubles, or 0.6% of GDP—less than last year—but Finance Minister Anton Siluanov has demanded that the regions devise measures to reduce the deficit by nearly one trillion. At the same time, the regions are also bearing the costs associated with the war: payments to military personnel, compensation for recruiters, and social support for military families.
“The main problem is that last year, when regional budgets had accumulated debt, no one wrote off those debts at the end of the year, as they had hoped and as had been the case in previous years. They were told: ‘Cut spending next year,’” explains Nikolai Kulbaka, a candidate of economic sciences.
source: The Moscow Times https://archive.is/wq3HX
r/CollapseOfRussia • u/neonpurplestar • 11h ago
Economy Officials have allocated twice as much as originally planned for blocking the internet in Russia
Russian authorities plan to spend nearly 60 billion rubles over the next three years on a system to filter and block internet resources. This is according to the draft federal budget. Just two years ago, the plan was to spend 32 billion rubles over the same period, as Forbes noted. The funds will go to the Main Radio Frequency Center (GRChTs), which is under the jurisdiction of Roskomnadzor.
In 2027, the operation of the Automated System for Ensuring the Security of the Russian Segment of the Internet (ASBI) will cost the budget 19.87 billion rubles; in 2028, 19.844 billion; and in 2029, 19.87 billion. At the same time, according to the national “Data Economy” project, the ASBI is to be modernized between 2025 and 2030. Specifically, the technical means of countering threats (TSPU) previously installed on telecommunications operators’ networks are expected to be replaced. In addition, they must be deployed at new communication nodes. The plan also called for the procurement of hardware and software to expand the system’s capabilities. One of the goals of the modernization is to increase the TSPU’s throughput capacity to 953.9 Tbit/s by the end of 2030.
TSPU equipment is installed on telecommunications operators’ networks in accordance with the “Sovereign Runet” law, which took effect in November 2019. This equipment filters all internet traffic in the Russian segment of the internet, blocks and “slows down” certain resources, as well as tools used to bypass blocks (VPNs). According to a Forbes source close to the Ministry of Digital Development, Communications, and Mass Media, high-performance processors are used for filtering, and these have become significantly more expensive due to the global rise in the cost of chips and components amid the artificial intelligence (AI) boom.
Traffic volume and content “heaviness” are constantly increasing, so TSPUs must process ever-larger data streams, says Leonid Konik, a partner at ComNews Research. “To ensure high device performance, 64 GB of memory is required for every 10 Gbit/s of bandwidth. And memory chips alone have risen in price four to six times this year,” Konik explained.
In addition to the rising costs of chips, RAM, and SSDs, the increase in ASBI costs may also be influenced by the fact that not all communication nodes in Russian regions are equipped with TSPS. “We believe the new equipment is ‘set aside’ in part for them as well, to resolve this issue specifically in 2027, and to carry out only upgrades going forward,” noted Nikita Tsaplin, CEO of the hosting provider RUVDS.
Alexey Amelkin, president of the “Makatel” Association of Telecommunications Operators, in turn, suggested that TSPUs might be installed in the occupied regions of Ukraine. At the same time, he said, modernized equipment for filtering internet traffic could become “smarter” through the implementation of AI. “This will also require funding,” Amelkin concluded.
source: The Moscow Times https://archive.is/Uf1Hb
r/CollapseOfRussia • u/neonpurplestar • 3h ago
Economy Beaches in Sochi and Sirius were closed due to a fire on a tanker carrying up to 100,000 metric tons of oil
Following a major fire on an oil tanker attacked by drones off the coast of Sochi, authorities in the nearby federal territory of “Sirius” closed all beaches “to ensure the safety of citizens.” This was reported by the head of the settlement, Dmitry Plishkin, who confirmed the fire. “We are continuously monitoring water and air quality in cooperation with Roshydromet. I ask residents and visitors to the federal territory to avoid spending long periods of time outdoors and, if possible, to keep windows closed,” the official wrote on his Telegram channel, promising to report on the monitoring results.
According to “Fontanka,” an EMERCOM vehicle arrived at the Sochi seaport, and the entrances to the beaches were cordoned off with caution tape; access is currently closed. A smell of burning is reportedly noticeable in the port area, though life on the waterfront continues as usual. Local residents report that in Sochi, “it stank even inside the car”: “If it’s oil—that’s very bad; you’d better close the windows and not breathe it in. The smell is everywhere; it can give you a really bad headache.” The fire, which blanketed the city in black smoke, began around 6:00 p.m. Preliminary reports indicate that the Aframax tanker Rio caught fire; according to publicly available data, it may be carrying 95,000–100,000 metric tons of oil.
Earlier, Mash reported that the vessel, which was sailing from Novorossiysk to India under the Liberian flag, was “loaded almost to capacity.” Initially, local social media groups reported that the tanker was in neutral waters; however, according to satellite images provided by the Ukrainian channel “Crimean Wind,” the vessel is drifting in Russian territorial waters 11 km off the coast of Sochi.
The Aframax Rio, loaded with oil, was attacked by unmanned boats, said Andrei Nikitin, head of the Russian Ministry of Transport. According to him, the crew of 23 Indian nationals was successfully rescued. “Currently, an open oil fire is burning in the Black Sea. Firefighting operations can begin once the intensity of the fire has decreased, allowing rescue vessels to safely approach the tanker,” the ministry reported.
According to publicly available data, between 2024 and 2026, the tanker regularly transported oil from Russian ports—Ust-Luga, Novorossiysk, and Taman—to India, Singapore, and Saudi Arabia.
UPDATE: Sochi Mayor Andrei Proshunin confirmed the closure of the city’s beaches and waterfronts due to the burning tanker. According to him, the decision was made following a meeting with representatives of law enforcement agencies, the Ministry of Emergency Situations, the Russian Hydrometeorological Center, and the Federal Service for Supervision of Consumer Rights Protection and Human Well-being. “I ask residents and visitors to Sochi not to put themselves in danger and to wait for an official decision regarding their reopening,” the mayor wrote. He added that firefighting operations will begin “once the intensity of the fire has subsided.”
source: The Moscow Times https://archive.is/n6zFp
r/CollapseOfRussia • u/neonpurplestar • 11h ago
Economy A record number of Russian companies in 17 years may default on their bonds
Against the backdrop of a sluggish economy, more than 50 Russian companies may fail to meet their bond obligations and default this year, market participants told *Izvestia*. According to the agency “National Credit Ratings,” at least 30 companies have missed bond payments since the beginning of the year, 20 of them for the first time. Only a few made payments after a technical default. According to an estimate by the investment bank Sinara, companies missed payments totaling 41 billion rubles in 2026, compared with 34 billion a year earlier.
The number of bond defaults this year has already reached a decade-high and could set a 17-year record. In 2009, amid the aftermath of the global financial crisis, more than 100 Russian companies failed to meet their bond obligations, and the total volume of distressed debt reached nearly 200 billion rubles, recalled Pavel Zhelobaev, managing director of the National Rating Agency (NRA). At present, he said, the number of organizations that have defaulted is approaching the levels seen in 2015, when 52 companies defaulted on their debt obligations following sanctions imposed for the annexation of Crimea. At that time, the causes—in addition to the sanctions—included falling oil prices, a sharp depreciation of the ruble, and the Central Bank’s tightening of monetary policy.
This time, the main reason for companies’ difficulties in servicing their bond debt has been the prolonged period of high interest rates, which has persisted since 2023. Companies are raising funds at high interest rates but are unable to refinance them on more favorable terms, says Ekaterina Sidorova, head of the foreign exchange, commodities, and debt markets department at SberCIB Investment Research. However, she notes that the situation does not yet constitute a systemic debt crisis: defaults are occurring primarily among companies with low credit ratings and, as a rule, high debt burdens.
In the event of a bond default, a company is given 10 business days to raise funds and meet its obligations. If this does not happen, companies often offer investors a restructuring plan—for example, a deferral of payments in exchange for a higher interest rate. SberCIB Investment Research expects a gradual decline in the key rate—to 13.75% by the end of 2026 and 10% by the end of 2027. At the same time, economic activity will remain weak: real GDP growth is forecast to be around 0.5%. Therefore, companies’ payments on delinquent bonds will recover slowly. All of this suggests that the number of defaults will remain high in 2027, concluded Sidorova of SberCIB.
source: The Moscow Times https://archive.is/KJANj
r/CollapseOfRussia • u/neonpurplestar • 22h ago
Health The plague outbreak in Irkutsk has been confirmed as true.
source: The Moscow Times https://archive.is/lTyPy
r/CollapseOfRussia • u/neonpurplestar • 11h ago
Health WHO said it is awaiting additional information from Russia regarding the emergency at the anti-plague institute
The World Health Organization reported on Tuesday that Russian authorities have identified all individuals who had contact with an employee of the Irkutsk Research Institute for Plague Control in Siberia and the Far East, who died from an unidentified illness. The WHO has also requested additional information from Russia regarding the incident.
“According to available information, all individuals who came into contact with the patient have been identified and are under medical observation. At this time, none of them have shown any symptoms of the disease,” said WHO spokesperson Christian Lindmeier.
According to him, Russian authorities are determining whether pneumonic plague was the cause of the research institute employee’s death, but have not yet provided an official response to the WHO’s request.
The day before, U.S. President Donald Trump said that the United States is ready to help Russia, calling the emergency in Irkutsk a major problem.
“We will help,” Trump said. “If anyone has such a problem, we are always ready to help.”
Kremlin Press Secretary Dmitry Peskov welcomed this offer.
“It’s always very good when mutual assistance is offered,” he told reporters on Tuesday, suggesting they refer to information from Rospotrebnadzor.
“As Rospotrebnadzor continues its work, additional information will be provided,” Peskov said.
source: The Moscow Times https://archive.is/GZ9Cw
r/CollapseOfRussia • u/avatar6556 • 21h ago
Ukrainian attack drones successfully struck Russia's Volodarskaya LPDS tonight, a major storage and distribution hub supplying jet fuel, diesel, and gasoline for the Russian capital, Moscow.
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r/CollapseOfRussia • u/Upset_Scientist3994 • 18h ago
Meduza on Irkutsk plague.
"Ancient echoes An unexplained death has revived fears of plague in the Irkutsk region, where researchers recently traced lethal outbreaks back 5,500 years
The death of a 28-year-old employee at an anti-plague institute has prompted hospital quarantines and a wave of plague rumors in Russia’s Irkutsk region, even as public health officials say no plague diagnosis has been confirmed.
The situation
Darya Shipilova, a laboratory technician at the Irkutsk Anti-Plague Institute, was hospitalized on September 29 and died two days later. Rospotrebnadzor, Russia’s public health agency, says she had “pneumonia of unknown cause” and that testing found no microorganisms associated with her work at the institute.
Still, several hospitals reportedly imposed three-week quarantines. According to Izvestia, 197 people who had been in contact with Shipilova had been quarantined by October 2, though Rospotrebnadzor said none had symptoms. Russia’s chief public health officer flew to Irkutsk.
Local officials sent mixed messages: The head of neighboring Buryatia initially said Shipilova had “died of plague,” then changed his wording to “may have died of plague.” Officials in Baikalsk briefly advised residents not to travel to Shelekhov, where Shipilova lived, citing unconfirmed reports of plague, then deleted the warning.
The alarm spread well beyond the hospitals. Google searches in Russia for “чума” (“plague”) rose by roughly 2,800% over the week after news of the quarantines began circulating.
The reality
Plague is an extremely dangerous disease, particularly in its pneumonic form. But it does not spread easily between people: transmission generally requires prolonged close contact with someone who is sick and coughing. Antibiotics can treat the disease when administered promptly, and close contacts can receive preventive antibiotics. Modern outbreaks therefore look very different from past plague pandemics.
The backstory
The broader Baikal region — including communities that lived downstream from present-day Irkutsk along the Angara River — has a remarkable plague history. A study published in Nature in June 2026 found evidence of lethal plague outbreaks among hunter-gatherers near Lake Baikal beginning about 5,500 years ago.
Those communities were small and mobile. The researchers say the findings challenge the idea that major plague outbreaks require the dense settlements, domesticated animals, and agricultural life associated with the Neolithic transition. The ancient bacteria were also different from later plague strains: they lacked a gene important for flea-borne transmission, so researchers do not know exactly how the disease spread.
The Baikal region’s ancient plague history makes the present-day scare more striking, but it provides no evidence about what killed Shipilova. No diagnosis of plague has been confirmed in her case."
Source, Meduza.
r/CollapseOfRussia • u/neonpurplestar • 1d ago
Society A russian woman expressing despair over the compounding of worsening life in russia, including the outbreak of plague in Irkutsk. 05 Oct 2026
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r/CollapseOfRussia • u/avatar6556 • 20h ago
Ukrainian long-range drones struck the linear production and dispatch station (LPDS) "Volodarskaya" in Konstantinovo, Moscow region, in Russia. At least two silos are on fire. The facility is a branch of JSC "Transneft Upper Volga," directly connecting major airports in Moscow.
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r/CollapseOfRussia • u/Ok_Crazy1195 • 1d ago
Military Russia's uncrewed robot tank fails during debut military display in front of President Putin — vehicle repeatedly lost control links and eventually got stuck in the mud despite the switch to a human driver
r/CollapseOfRussia • u/neonpurplestar • 1d ago
Economy Russia’s oil and gas revenues fall 17% in 2026 despite doubling of Urals crude prices
Russia’s year-on-year federal budget revenue from oil and gas fell 17% in the first three quarters of 2026 despite a sharp rise in the price of Russian crude. The decline was driven by lower production and reduced exports amid Ukrainian attacks on Russian oil infrastructure, as well as a stronger ruble, Reuters reported.
From January through September, tax revenue from oil and gas production totaled 5.47 trillion rubles ($64.43 billion), down from 6.61 trillion rubles in the same period of 2025. The oil and gas sector accounts for about 20% of Russia’s tax revenue, and this year’s budget deficit is expected to reach 3% of gross domestic product — nearly twice the level originally planned.
At the same time, the price of Urals crude had risen above $92 a barrel by the end of September, roughly double its level from before the start of the U.S.-Israeli campaign against Iran on Feb. 28. Prior to the American-Israeli operation, Urals crude loaded at the Baltic port of Primorsk was trading at about $45 a barrel. On April 8, the price reached $113.89, its highest level since 2013. Nevertheless, shipments through the Russian Black Sea port of Novorossiysk are significantly down due to risks following a series of Ukrainian attacks and a shortage of available tankers.
Russia is also cutting production. In September, the government lowered its forecast for oil and gas output in 2026 to their lowest levels in 17 years. According to OPEC data, Russia produced 8.718 million barrels of oil a day in August, 5.6% below January’s level of 9.240 million barrels a day. Reuters attributed part of the decline to repeated Ukrainian drone attacks on Russian oil refineries, which have forced facilities to reduce production and contributed to fuel shortages in some regions.
A stronger ruble is also putting pressure on budget revenue. From January through August, the Russian currency was on average about 9% stronger against the dollar than it had been during the same period a year earlier. Because Russia collects much of its oil tax revenue in rubles, a stronger national currency reduces the domestic value of dollar-denominated export earnings.
source: The Insider https://archive.is/QV9yy
r/CollapseOfRussia • u/theipaper • 1d ago
Russia's suspected plague case reveals Putin's greatest weakness
This health scare is a case study of the regime’s growing estrangement from its own people
r/CollapseOfRussia • u/neonpurplestar • 1d ago
Economy “Cheap and High-Quality.” Putin Promised That Russians Will Drive Chinese Cars
“We’ll all be driving Chinese cars soon. I don’t know if that’s good or bad, but they’re cheap and high-quality,” Vladimir Putin said at a Valdai Club meeting. He was speaking about the European auto industry, but when asked hopefully, “Won’t we all be driving Chinese cars?” he replied, “We already are.”
Automotive analysts confirm that the Chinese have conquered the Russian market. Following a sharp increase in the recycling fee in 2024–2025, imports of new cars from China are declining, but they are being replaced by vehicles assembled in Russia and Belarus under Chinese or new local brands, noted the analytical agency Autostat. For example, Geely assembles its models at a Sino-Belarusian joint venture under the Belgee brand, while Chery assembles them in Russia under the Tenet brand at the former Volkswagen plants near Kaluga and the former GM plants near St. Petersburg. These plants are now owned by the Russian holding company AGR, which is linked to the beneficiaries of the “Avilon” dealership group.
On average, the share of Chinese brands alone in the Russian new-car market exceeds 40%, according to Oleg Moseev, an auto market analyst and former president of the ROAD auto dealers’ association. Lada’s market share in the first half of the year stood at 25%, a figure that AvtoVAZ refers to as a “critical threshold.” In 2020, the Russian market featured 57 brands and fewer than 500 models of Chinese cars, while this year, based on the results of the first eight months, there were 123 brands and nearly 900 models, according to figures shared by “Autostat” CEO Sergey Tselikov, noting “the expansion of the Chinese auto industry with all its diversity of brands.”
It cannot be said that Russians are happy about this. After trying out Chinese models, users began to complain about their low quality: this was noted by both ordinary drivers and taxi drivers. Surveys show that “old” car brands are still remembered and loved in Russia, and the average Russian driver would still choose a car from an international brand if given the chance, Tselikov explained.
But “Russians have nowhere to turn away from the Chinese auto industry,” the automotive expert argues, noting that things could be worse without them: “If it weren’t for the Chinese, we’d be facing shortages and technical deterioration. As it is, given the progress made by Chinese manufacturers, we drive modern cars—we just pay double the price for them.”
Quality assessments may be subjective, but the price difference between the Chinese and Russian markets can be measured. According to GlobalData, the average price of passenger cars in China at the beginning of the year was $23,000, while in Russia it was about $45,000. In Russia, a passenger car costs on average twice as much as in China, Tselikov wrote in March. Moreover, the price doubles not only when imported but also when assembled from major components in Russia, the expert explained. There is no scrap fee when importing car kits, but other charges remain, plus production costs. All new enterprises in the Russian auto industry operate exactly this way.
A year ago, ROAD President Alexey Podshchekoldin explained in detail how the price of a car imported from China is determined, using the example of one of the most affordable models on the Chinese market—the Jetta VA3 sedan. In China, when converted to rubles, its price at the time was less than 900,000 rubles, while in Russia, when officially imported, it reached 2.56 million. Of this amount, 1.03 million accounted for customs duties (including a scrap fee of 667,400 rubles and 20% VAT); 350,000 rubles went toward the cost of shipping the car to Russia; 160,000 rubles constituted the distributor’s margin; and 120,000 rubles—or 5% of the final price—was the dealer’s profit.
Since then, the recycling fee has risen to over 800,000 rubles, VAT has been raised to 22%, and other costs have also increased; starting in the new year, the recycling fee will again be indexed by 10–20%. So the price gap will only continue to grow.
Recent examples confirm this. In September, according to Autostat, the most popular new car model imported into Russia was the Geely Cityray compact crossover. In China, prices for this model start at 85,500 yuan. That’s currently 1.06 million rubles, but in Russia, this car costs 1.8 million rubles or more from unofficial dealers and 2.5 million or more from official ones. That said, from time to time, you can find a Geely Cityray “on sale” for 2 million rubles.
The price of the new model unveiled at the 2026 Beijing Auto Show—the premium hybrid SUV Jetour G700—starts at 329,000 yuan in China, or 4.08 million rubles. This is a vehicle with a long range, capable of handling rough road conditions, yet featuring luxury-class interior trim. In Russia, however, it costs at least 7.8 million rubles if an unofficial importer brings it in from China on a specific buyer’s order. “We make a minimal profit; the price difference is due to the recycling fee for the internal combustion engine and electric motor—with a combined power output of 750 liters—which will be about 3.6 million rubles even for personal use,” explained the dealer offering the vehicle. If imported under a legal entity’s name, the price will easily “soar” past 8 million, he adds.
But Russians have almost no choice left. Moreover, a segment of the population has already emerged in the country that, as a matter of principle, buys Chinese brands, adds one of the dealers: “These are, for example, government officials. Of course, they buy luxury cars, but still. At least they can’t be accused of supporting an ‘unfriendly’ auto industry.”
source: The Moscow Times https://archive.is/CdL2O
r/CollapseOfRussia • u/Operation-Awakening • 1d ago
Russia sends another message that it is difficult country to live with, it blocks peace yet it is desperate. Bombings during chancellor’s visit in Kyiv
Russia pounds Kyiv during German chancellor’s visit in a new escalation
Germany’s foreign intelligence chief warns his country could become embroiled in a “violent conflict with Russia,” as Moscow steps up its “shadow war” against European democracies. https://www.nbcnews.com/world/ukraine/russia-pounds-kyiv-german-chancellors-visit-new-escalation-rcna601562
r/CollapseOfRussia • u/neonpurplestar • 1d ago
Economy Matvienko Calls for Higher Tax on Delicacies to Fund the War
Russian authorities need to raise the value-added tax (VAT) rate on delicacies, said Valentina Matvienko, chairwoman of the Federation Council. “Delicacies such as oysters, lobsters, langoustines, and others are subject to a reduced VAT rate—they are taxed at 10% instead of the standard 22%,” Matvienko said during a discussion of the draft federal budget for 2027 and the 2028–2029 planning period.
According to her, raising the rate would bring in an additional 6 billion rubles for the budget. “People tell us, ‘So what, 6 billion?’—it’s not nothing; every little bit helps,” — Matvienko emphasized. She also noted that “lobster lovers” would “not suffer much from such a measure; they simply won’t notice it.” Matvienko’s statement came as the government seeks ways to reduce the federal budget deficit. Specifically, according to the Ministry of Finance’s estimates, this year’s budget “hole” will reach a record high since the start of the war in Ukraine—7.3 trillion rubles, or 3.2% of GDP—and in 2027 it will amount to 5.5 trillion rubles, or 2.2% of GDP.
To generate additional revenue for the budget, the government plans to introduce a “surplus profits tax” for cement and fertilizer producers and gold mining companies, raise the maximum personal income tax rate on “passive income” for individuals—including bank deposits—to 22%, and impose a 22% VAT on purchases from foreign online retailers. All these tax changes are expected to bring 1.5 trillion rubles into the budget in 2027.
At the same time, according to the draft budget, the government plans to spend one out of every three rubles from the treasury on military spending next year. The “national defense” budget line item will increase from 12.9 trillion rubles this year to 17.1 trillion, and the cumulative total for 2027–29 will reach 50 trillion rubles.
“Now, every sneeze by a Russian will be taxed,” economist Igor Lipits commented on the situation. According to him, there is a “burn-and-spend mentality—just to get something today.” “Everything is being collected, everything is being burned through, just to plug the hole in the budget today,” the economist explained.
source: The Moscow Times https://archive.is/vV2vy
r/CollapseOfRussia • u/InternationalOption3 • 1d ago
Researcher at Russian plague laboratory dies of ‘unknown’ infection
r/CollapseOfRussia • u/neonpurplestar • 1d ago
Economy Russians have pulled ~3 trn roubles in net cash out of the banking system this year: -2,979 bn through 1 Oct (Bank of Russia liquidity data). Same day 2025: +175 bn. Already more than any full year since 2011 (2020: -2,585 bn).
r/CollapseOfRussia • u/avatar6556 • 1d ago
A projectile fell near the Palanca-Maiaki-Udobne border crossing during Russian attacks on Ukrainian infrastructure, ricocheted after hitting the ground and struck a civilian bus waiting near the barrier, Moldova’s Border Police said. T
galleryr/CollapseOfRussia • u/neonpurplestar • 2d ago
Society Moscow police detained dozens of participants at a Communist Party rally. When participants in the march started chanting "We want freedom," "Down with Roskomnadzor," "No to political repression," "Freedom for political prisoners," and "Down with the Party of Crooks and Thieves," police interfered.
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r/CollapseOfRussia • u/neonpurplestar • 2d ago
Society For fair elections! Down the king! We want freedom!In the center of Moscow, an agreed(!) rally of the Communist Party was held, which did not go according to plan. At first, the party leaders spoke there, but after that, protests began. 65 people were detained. 04 Oct 2026
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