https://www.newsweek.com/russia-bankrup ... nt-1876806
Russia has seen a sharp spike in corporate bankruptcies, according to a report that comes as Vladimir Putin looks to tax companies more to pay for his social program and the sanctions-hit economy continues to face turbulence.
The business newspaper Kommersant reported that in the first two months of 2024, corporate bankruptcies had increased by more than a half compared with the same period last year—and experts predicted an increase in insolvencies in future.
Bartosz Sawicki, market analyst at Conotoxia Fintech, told Newsweek Russian firms are facing refinancing issues "as the effects of monetary tightening are starting to kick in."
Kommersant said that in January and February this year, 571 and 771 companies respectively, were declared bankrupt—57 percent and 61 percent more than in the same months in 2023, citing court records in the country's Unified Federal Register of Bankruptcy Information.
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Last week, Putin hinted at higher taxes for companies during his state-of-the-nation address to Federation Council, in which he announced policies to boost infrastructure, and social support. The Moscow Times reported that this would involve a windfall tax on profits for corporations, in addition to a rise in personal income tax, from a flat rate of 13 percent. Bloomberg estimated Putin's plans would cost $164 billion in the next six-year term of his presidency, which he is expected to regain in this month's elections.
