this post was submitted on 12 Nov 2024
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Summary

Russian businesses are facing severe financial stress as the Central Bank of Russia's interest rate hits 21%, with further hikes expected.

High borrowing costs, especially for companies with floating-rate loans, have pushed many towards a debt crisis, with interest payments consuming up to 75% of earnings.

Rising corporate bankruptcies, late payments, and stalled investments signal deepening economic distress. Key industries, including retail, real estate, and manufacturing, are especially vulnerable.

The situation is expected to worsen as the economy cools and interest rates remain high, potentially triggering a financial crisis.

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[–] [email protected] 0 points 1 week ago

I think they've navigated a situation that looked hopeless better than anyone in the west could have expected. We all hoped economic sanctions were enough to elicit a peaceful outcome when negotiating with Russia failed, but instead it's turned into things like BRICS.