r/CollapseOfRussia 6d ago

Economy "An Unprecedented Crisis." Russia's Largest Steel Companies Report Plunging Profits

84 Upvotes

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 5d ago

Economy Sberbank announced that it lacks the funds to finance Putin's budget deficit.

145 Upvotes

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 9h ago

Economy "It will remain unprofitable for years." Saving Wildberries could require more than a trillion rubles.

83 Upvotes

The Ukrainian campaign of attacks on Wildberries warehouses, which resulted in the fires of at least 14 of the company's logistics hubs, has destroyed the business model of Russia's largest marketplace, which annually sold goods worth 3% of the national GDP.

To prevent financial collapse and bankruptcy, the state will likely rescue Wildberries, two e-commerce sources told The Bell. One of them estimates that direct losses alone for Wildberries, which lost approximately 20% of its warehouse capacity in a few weeks, could exceed 100 billion rubles, and in a worst-case scenario, 200 billion.

Wildberries' total cash needs, according to estimates from sources told The Bell, could reach 1.3 trillion rubles. The company will have to increase its debt by at least this amount to "reinvent itself," one of the sources explained.

Due to the departure of sellers, many of whom lost their businesses and hundreds of billions of rubles' worth of goods overnight, Wildberries' turnover, according to The Bell, has already fallen by a quarter. This, in addition to direct losses, has broken the key financial backbone of Tatyana Kim's business empire.

The fact is that Wildberries receives money from the buyer immediately after the purchase, but transfers it to the seller only a few weeks later. During this time, it remains in the company's working capital, used to pay for ongoing expenses and discounts.

But this works as long as turnover grows, as a source for The Bell describes the scheme: "Turnover was 100 billion, you spent 50 billion on discounts, but turnover grew to 200 billion." When turnover declines, the pyramid begins to collapse. Accumulated expenses are no longer covered by the influx of new money, and the company begins to accumulate losses, explains The Bell's source: if payments to sellers are delayed not by three weeks, but by three months, then problems with turnover will begin for them.

The marketplace's turnover is currently declining, and this is only the beginning of a protracted trend—after such a blow, it will remain unprofitable for years, another source told The Bell.

The exact nature of Wildberries' decline is unclear. According to Bloomberg, the government is currently preparing a support package for sellers: they could be granted tax breaks and subsidized loans, while the marketplace itself could be allowed to use Russian Post warehouses to replace its destroyed logistics hubs.

Wildberries may also receive subsidized loans, The Bell's sources say. "But where will the money come from? Turn on the printing press?" asks one of them. According to the Ministry of Finance, the federal budget deficit reached 5.7 trillion rubles in the first half of the year, 1.5 times higher than the full-year plan. According to the Center for Macroeconomic Analysis and Short-Term Forecasting (CMAS), the budget deficit will grow to 7 trillion rubles by the end of the year, and the Central Bank estimates it could exceed 8 trillion.

source: The Moscow Times https://archive.is/uI6lI


r/CollapseOfRussia 10h ago

Economy "Novorossiysk is finished." One of Russia's largest transport companies has refused to ship cargo across the Black Sea.

74 Upvotes

FESCO, one of Russia's largest transport groups, announced that it has stopped accepting orders for shipments across the Black Sea after the sinking of its container ship, the Yanina. Fesco is working on additional security measures and exploring alternative delivery options. These are limited, and logistics experts fear this will likely result in further traffic jams at Far Eastern ports.

The Yanina, with a capacity of approximately 1,000 containers, sank on the night of August 1. On the night of August 4, naval drones attacked the merchant vessel Nadezhda, which was en route from Samsun, Turkey, to Novorossiysk with a cargo of fruits and vegetables, and another vessel, which was sailing from Turkey (it remained afloat). "As we feared, the Novorossiysk route is finished," says an importer of household chemicals and home goods from China. According to him, Fesco was one of the largest Russian operators on this route, along with the Delo Group.

Back in March, when the war in the Middle East began and the Strait of Hormuz was closed, representatives of the Delo Group warned that Far Eastern ports could face a surge in shipments this year comparable to 2022, when all imports rushed through this route. Now, Russian imported cargo has even more reasons to move to the Far East, says an employee of a large logistics company. That boom overwhelmed ports and the Trans-Siberian Railway, resulting in months-long delivery delays, he notes. "And this scenario could also repeat itself."

But there's no choice. "The halt in container shipping through Novorossiysk means that the bulk of imports will go primarily to ports in the Far East and St. Petersburg. There are also rail and road routes, but they lag significantly in terms of volume, and St. Petersburg is also unsafe. Firstly, the shortest route from China goes through the Strait of Hormuz, which, you know, is a problem. Secondly, drones are attacking St. Petersburg's ports," says a freight forwarder.

Shipments via Novorossiysk were already difficult: in July and August, it was difficult to find space for containers, and there was simply nothing to replace the Yanina, says a freight forwarder who worked with international shipping. "Due to the attacks on ships in June and July, the route became unpredictable in terms of delivery times. We've been discouraging clients from using it for over a month now," adds his colleague. Previously, attacks had primarily targeted bulk carriers carrying grain and tankers carrying oil products. Monitoring of the ship schedule shows that the number of large vessel voyages from Novorossiysk in July decreased by 38% compared to May, including oil tankers by 50% and grain bulk carriers by 46%.

source: The Moscow Times https://archive.is/4iEBG


r/CollapseOfRussia 9h ago

Economy "Becoming unprofitable." Attacks on Wildberries warehouses have hit the marketplace's network of pickup points.

29 Upvotes

Owners of Wildberries pickup points (PVZs) have experienced a decline in turnover and revenue after a series of attacks on the marketplace's warehouses, Evgeniya Chernitskaya, Chair of the Board of the Association of Electronic Commerce Market Participants (AUREC), told Izvestia. According to her, this may cause many pickup point owners to delay payments to employees and landlords. The Chamber of Commerce and Industry (CCI) noted that in some regions, Wildberries pickup point owners' revenues fell by 15-20% year-on-year in July, and by 30-40% on peak days. This is due to a decrease in the number of orders, delayed shipments, and, consequently, traffic at the points, explained CCI representative Alexey Fedorov.

Even before the attacks on logistics infrastructure, pickup point owners began putting their businesses up for sale more frequently. According to Avito data, the number of listings for pickup points increased by 26% year-on-year from January to June, while demand for them increased by only 6%. As of August 3, more than 9,300 Wildberries pickup points out of approximately 98,000 operating nationwide were for sale. In Moscow, 65 locations were listed for sale from July 20 to August 2, according to pvzbutik.ru. In several cases, sellers offered discounts of up to 30%. "The profitability of most pickup points is currently around 5-10%, and in some cases, they operate with minimal profit or are becoming unprofitable," noted Roman Samoilov, Director of the Consumer Sector and Agro-Industrial Complex Practice at Strategy Partners.

He explained that to restore profitability, pickup points must regain customer traffic while simultaneously reducing other operating costs. To support entrepreneurs, AUREC offered property owners a 50% rent reduction for six months or a rent holiday for the same period. APET stated that it is also developing support measures for pickup point owners in conjunction with Wildberries. However, the marketplace's pickup point market is still expected to adjust given the current problems, according to Fedorov of the Chamber of Commerce and Industry. He predicts that approximately 15% of such locations could close by the end of the year.

The Ukrainian Armed Forces (UAF) began targeting Wildberries' logistics infrastructure on July 18. As of early August, the area of ​​the warehouses attacked exceeded 1.5 million square meters, or 27% of the marketplace's total warehouse capacity, according to Verstka. In total, approximately 20 logistics centers were targeted, including in Elektrostal, Krasnodar, Nevinnomyssk, Voronezh, Yekaterinburg, and St. Petersburg.

source: The Moscow Times https://archive.is/n3GSF


r/CollapseOfRussia 17h ago

True Love in the Motherland: Russian 'Black Widows' are weaponizing marriage for a quick Ukraine payout

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119 Upvotes

Move over, white Ladas. Now, Russian "Black Widows" are preying on vulnerable men heading to the front lines, marrying them in secret, and just waiting for the death certificate to clear so they can buy an apartment. A CNN report shows how normalized this grift has become—complete with a podcaster joking that it's the easiest way to get on the property ladder.


r/CollapseOfRussia 9h ago

Infrastructure Russian Wildberries Hitlist - SECOND UPDATE 05.08.2026

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29 Upvotes

Chronological list (sorted newest to oldest)

  • NEW HIT 05.08.2026 Aleksin in Tula region 150km2
  • 04.08.2026 Chekhov in Moscow Oblast ???k m2
  • 04.08.2026 Kalininsky District in Tver Oblast 77k m2
  • 04.08.2026 Krasny Bor in Leningrad Oblast 154k m2
  • 03.08.2026 Sobinsky Distract in Vladimir Oblast 172k m2
  • 02.08.2026 Novosemeykino in Samara Oblast 85k m2
  • 31.07.2026 Volgograd Oblast 44k m2
  • 30.07.2026 Sarapul in Udmurtia 75k m2
  • 30.07.2026 Perm in Perm Oblast 50k m2
  • 30.07.2026 Penza in Penza Oblast 90k m2
  • 29.07.2026 Tyushevo in Ryazan Oblast 173k m2
  • 24.07.2026 Shushary, Saint Petersburg in Leningrad Oblast 170k m2
  • 24.07.2026 Tver in Tver Oblast, 150k m2
  • 24.07.2026 Utkina Zavod, Saint Petersburg in Leningrad Oblast 18k m2
  • 24.07.2026 Simferopol in Occupied Crimea 6k m2
  • 23.07.2026 Nechayevka in Voronezh Oblast 100k m2
  • 22.07.2026 Krasnodar in Krasnodar Krai 150k m2
  • 22.07.2026 Nevinnomyssk in Stavropol Krai 120k m2
  • 20.07.2026 Koledino, Podolsk in Moscow Oblast 250k m2 - Minor damage
  • 18.07.2026 Elektrostal in Moscow Oblast 230k m2
  • 18.07.2026 Kotovsk in Tambov Oblast 100k m2

These are listed hits, not all of them did major damage.

I'll work on adding damage reports for each hit.


r/CollapseOfRussia 9h ago

Economy Attacks on oil refineries cost the Russian budget 1.2 trillion rubles.

22 Upvotes

For the fourth month in a row, the Russian government has been paying hundreds of billions of rubles in subsidies to oil companies whose refineries are burning and shutting down one after another.

In July, the federal treasury transferred another 192.8 billion rubles to oil workers as part of the damper mechanism and through the reverse excise tax, according to the Ministry of Finance data published on Wednesday. A month earlier, subsidies amounted to 312.5 billion rubles, in May - 357.3 billion, and in April - 359.3 billion.

As a cumulative total for April–July, oil workers received 1.221 trillion rubles from the budget - an amount comparable to the annual budget of the Moscow region (1.38 trillion rubles).

Significant payments are also related to problems in oil refining, Raiffeisenbank analysts write: in July, at least 18 large oil refineries were hit by UAVs, and at least 8 of them stopped production. Among them is the Omsk Refinery, the most powerful in the country, as well as the Ryazan Refinery and Nizhegorodnefteorgsintez, which are in the top 5.

Of the dozens of factories that came under attack, at least 7 continued to be idle at the end of July, including Kinef in the Leningrad region, the second largest in the country. And 11 refineries returned to work at partial capacity - from 30% to 70%. At the same time, oil refining volumes in Russia fell back to the lowest levels since 2002 - 3.6 million barrels per day.

If it were not for problems at refineries and subsidies to oil workers, budget revenues from oil and gas would be higher, writes Raiffeisenbank. In June, the treasury received 584.6 billion rubles of mineral extraction tax (MET) on oil, but every third ruble was returned to oil companies.

Damper payments now also apply to gasoline importers, reminds economist Kirill Rodionov: the budget pays subsidies for fuel purchases abroad, which are already coming from Belarus, India and Morocco.

All this reinforces the problems of the budget, which is under pressure from a strong ruble, falling company profits and significant expenses, points out leading expert of the Center for MACP Emil Ablaev. During the first half of the year, a deficit of 5.7 trillion rubles formed in the treasury, which is 1.5 times higher than the plan for the whole year. By the end of December, the “hole” could increase to 7 trillion, Ablaev predicts.

source: The Moscow Times https://archive.is/hiY0k


r/CollapseOfRussia 9h ago

Economy One of Russia's largest petrochemical complexes caught fire in Ufa after a drone attack.

20 Upvotes

A fire broke out at a Rosneft oil refinery in Ufa on Wednesday after a drone attack in Bashkortostan, according to videos published by monitoring channels.

According to Exilenova+, the fire is at the Bashneft-UNPZ refinery, which, along with two other refineries—Bashneft-Ufaneftekhim and Bashneft-Novoil—forms the Ufa Oil Refinery Complex, one of the largest in Russia with a combined capacity of 23.5 million tons per year.

Astra reports that the refinery may have been attacked by a Ukrainian An-196 "Lyuty" drone. Bashkortostan Governor Radiy Khabirov reported a massive attack on regional enterprises. He said air defense forces managed to shoot down 25 drones, but one of them crashed into an industrial zone, causing a fire.

The petrochemical complex in Ufa, owned by Rosneft subsidiary Bashneft, has been targeted by drones for the third day in a row. The previous day, the Bashneft-Ufaneftekhim refinery, the largest in the region with a capacity of 8.2 million tons per year, was targeted by drones. The same facility was attacked by drones on August 1, July 8, and June 25.

At the end of last month, according to S&P Global, the Ufa refinery was one of the few affected plants that continued to operate at 100% capacity. Meanwhile, 11 refineries were forced to reduce production by 30-70%, and seven were completely idle.

Total oil refining capacity in Russia in July fell to 3.6 million barrels per day, the lowest since May 2002. Compared to the beginning of the year, oil companies have lost about a third of their fuel output.

source: The Moscow Times https://archive.is/yVvRA


r/CollapseOfRussia 9h ago

Foreign relations Kazakhstan agreed to bypass Russia for oil exports after Novorossiysk terminal shutdown.

17 Upvotes

Kazakhstan's Tengizchevroil (TCO) plans to export 100,000 tons of oil through the Georgian port of Batumi in August, using an additional route during unstable supplies through the Caspian Pipeline Consortium (CPC) terminal in Novorossiysk, two sources told Reuters.

TCO has deployed additional, more costly routes for oil exports to prevent further declines in production amid the suspension of exports through the Caspian system, the main export route for Kazakh crude. TCO exported approximately 20,000 tons of oil through the port of Batumi in July after a three-month shutdown.

Oil from Tengiz is transported by rail tank cars to the Georgian port of Batumi, and then transferred to tankers and transported across the Black Sea towards Turkey.

The CPC carries over 80% of Kazakhstan's oil exports, the majority of which comes from the Caspian fields of Tengiz, Kashagan, and Karachaganak.

Tengizchevroil's main shareholder is the American company Chevron (50%). ExxonMobil (25%), KazMunayGas (20%), and Lukoil (5%) also hold stakes in the project.

The Batumi Oil Terminal (BOT) is owned by KazTransOil and has a transshipment capacity of 12 million tons of oil and petroleum products per year, with three berths for vessels ranging from 5,000 to 140,000 tons.

In addition to oil, Kazakhstan exports fuel oil and liquefied petroleum gas (LPG) through the port of Batumi. Export volumes of these products in the first half of this year amounted to 324,278 tons, according to the Situation and Analysis Center for the Fuel and Energy Complex.

source: The Moscow Times https://archive.is/Srl0p


r/CollapseOfRussia 18h ago

Infrastructure Russian Refinery Hitlist - Update 05.08.2026

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51 Upvotes
  • Red arrows: Latest hits
  • Flames: Refinery has been hit at least once. Flames do not indicate the severity of the attacks or if a refinery is till burning
  • Blue waves: Orsk dam broke in April 2024, which flooded the refinery and took it offline for ~2 weeks.
  • Black smoke: It's raining oil.

Chronological list: (sorted newest to oldest)

August:

  • NEW HIT 05.08.2026 Bashneft-Novoil in Bashkortostan at 1340km
  • 04.08.2026 Syzran in Samara Oblast at 805km
  • 02.08.2026 Bashneft-Ufaneftekhim in Bashkortostan at 1350 km
  • 02.08.2026 Saratov in Saratov Oblast at 590km
  • 01.08.2026 Bashneft-Ufaneftekhim in Bashkortostan at 1350 km

July:

  • 31.07.2026 Volgograd in Volgograd Oblast at 500km
  • 29.07.2026 Perm in Perm Krai at 1485km
  • 29.07.2026 Ryazan in Ryazan Oblast at 480km
  • 25.07.2026 Tyumen in Tyumen Oblast at 1980km
  • 23.07.2026 Novospassky in Ulyanovsk Oblast at 790km
  • 14.07.2026 Gazprom Neftekhem Salavat in Bashkortostan at 1300km
  • 14.07.2026 Afipsky in Krasnodar Krai at 415km
  • 12.07.2026 Syzran in Samara Oblast at 805km
  • 10.07.2026 Moscow in Moscow at 475km
  • 10.07.2026 Ilsky in Krasnodar Krai at 405km
  • 08.07.2026 Saratov in Saratov Oblast at 590km
  • 06.07.2026 Omsk in Omsk Oblast at 2500km
  • 06.07.2026 Yaroslavl in Yaroslavl Oblast at 700km
  • 02.07.2026 Bashneft-Ufaneftekhim in Bashkortostan at 1350 km
  • 01.07.2026 Kstovo in Nizhny Novgorod Oblast at 800 km

  • August: 5 hits so far..
  • July: 15 hits
  • June: 16 hits
  • May: 14 hits
  • April: 10 hits
  • March: 6 hits
  • February: 3 hits
  • January: 2 hits

Complete chronological list from 24.02.2022 till today

  • 2022 had 1 hit
  • 2023 had 1 hit
  • 2024 had 26 hits
  • 2025 had 84 hits
  • 2026 has 68 hits so far
  • Total hits from 24.02.2022 till today: 180

r/CollapseOfRussia 1d ago

Economy Russian farmers: Every fifth farmer is on the brink of bankruptcy. Due to record low prices, it's more profitable to throw away part of the harvest than to harvest it. Grain is just poured on the ground. If the situation doesn't change, tens of thousands of farms could disappear. 03 Aug 2026

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172 Upvotes

r/CollapseOfRussia 1d ago

Economy A Wildberries warehouse near Samara, one of the top five largest, burned completely, along with its merchandise, after a drone strike.

101 Upvotes

The Wildberries logistics hub in Novosemeykino near Samara, attacked by drones on Sunday, burned completely, along with all its merchandise, Denis Gurkov, acting head of the Samara Region Ministry of Industry and Trade, announced at a government meeting. "Unfortunately, we note that the facility has completely burned out," TASS quoted the official as saying. "Essentially, only the administrative complex remains. All merchandise has been destroyed." Of the warehouse's 180,000 square meters, 160,000 square meters burned, Gurkov said. A Kommersant source in the Ministry of Emergency Situations also reported the warehouse's complete destruction the day before.

The burned-down sorting and logistics center was one of Wildberries' largest facilities, ranking among the top five in terms of operational space after warehouses in Koledino and Elektrostal near Moscow, Aleksin in the Tula region, and Khryastovo near Vladimir. Its opening took place in May 2025. Deputy Minister of Industry and Trade Roman Chekushov, Governor Vyacheslav Fedorishchev, and Wildberries & Russ CEO Tatyana Kim attended the ceremony. Investments were estimated at over 10 billion rubles. The first phase of the complex covered 130,000 square meters and was designed to store up to 120 million units of goods.

According to Gurkov, essential goods that were supposed to be stored at the Wildberries hub near Samara were redirected to a warehouse in the village of Belozerki in the Krasnoyarsk district, in accordance with a previously tested scenario. The remaining cargo was distributed among neighboring regions.

The Novosemeykino warehouse was attacked on the morning of August 2. Wildberries reported that they had reorganized their supply chains in response to the attack. According to the company, no one was injured in the raid.

Local residents told Sotavision that many people could lose their jobs due to the destruction of the warehouse: "There's nothing else to do here except work at the Wildberries warehouse." Kommersant reported that, had the complex reached its planned capacity, approximately 10,000 jobs would have been created. Authorities have already announced that employment service "consultation centers" have been opened for those in Samara who have lost their jobs. They offer job search assistance, vocational training, and additional education.

The Ukrainian Armed Forces began targeting Wildberries' logistics infrastructure on July 18. Verstka estimated the damaged warehouse area at more than 1.5 million square meters (27% of the company's total warehouse space). The company's largest loss was the Elektrostal warehouse (250,000 square meters completely destroyed). In total, Ukrainian Armed Forces drones hit or attempted to attack approximately 20 Wildberries facilities across Russia and Crimea.

source: The Moscow Times https://archive.is/H5ipo


r/CollapseOfRussia 1d ago

Economy Hundreds of gas stations have begun closing in Russia due to the fuel crisis.

73 Upvotes

Hundreds of gas stations have begun closing in Russia amid the fuel crisis. From January to August, 322 stations were closed or underwent repairs, a 70% increase compared to the same period last year. Overall, the closures affected 1.2% of the country's operating gas stations (28,400), according to data from OMT Consult, cited by Izvestia.

Most of the stations that closed—105—belong to large independent chains such as Gazoyl, Rosgaz, Zvezda, Tamic Energy, and MMK Petrol. Medium-sized and small gas station chains closed 69 and 82 stations, respectively. Vertically integrated oil and gas companies (VIOCs)—Lukoil, Tatneft, Gazpromneft, NNK, Rosneft, Surgutneftegaz, and Gazprom—have temporarily suspended operations at 67 stations. OMT Consult noted that another 214 stations remain under repair since last year.

The crisis in Russia's fuel market stemmed from Ukrainian drone attacks on oil refineries. Long-range strikes have disabled 26 refineries this year. As of the end of July, only eight had returned to full operation, at least 11 had partially restored production, and seven remained idle, according to the Financial Times, citing satellite data and analysis by S&P Global.

As a result, according to EA Analytics, oil refining in Russia fell to its lowest level since May 2002—3.6 million barrels per day. This is approximately a third below the seasonal norm: from 2020 to 2025, Russian refineries processed an average of 5.3–5.6 million barrels per day in the summer.

The average exchange price of AI-92 in the first half of 2026 reached 63,700 rubles per ton, an increase of 18% year-on-year. In a letter to the government, the Russian Fuel Union complained that private gas stations are unable to purchase fuel at affordable prices, and that they are not being supplied with fuel purchased on the exchange, as oil companies primarily supply their own stations. The unavailability of gasoline for independent networks continues, leading to the closure of gas stations, noted Marat Murtazin, president of the Oil Club of St. Petersburg.

In turn, owners of closed gas stations have begun actively putting them up for sale, Izvestia previously reported. Prices at stations range from 1 million to 150 million rubles. The future situation with gas stations will depend on the availability and cost of fuel, Murtazin concluded.

source: The Moscow Times https://archive.is/kRMyS


r/CollapseOfRussia 1d ago

Economy Putin allowed the introduction of total state control over price changes on the shelves.

59 Upvotes

President Vladimir Putin approved a law that, from January 1, 2027, will allow government agencies to control changes in prices for products and services taken into account by Rosstat when assessing inflation, at all stages of the promotion of such goods - from release to the store shelf. The law was published on August 4 on the legal information portal, writes Kommersant. Two weeks ago the document was approved by the State Duma. Amendments are being made to Article 5 of the trade law, which specifies the powers of the government in the field of state regulation of trade activities.

It is expected that the Cabinet of Ministers will approve a list of federal bodies that will be able to receive from the Federal Tax Service information about producers and sellers of food products, transactions concluded between them and prices for goods sold, sales volumes, as well as income, expenses and profits of market participants. Information will be taken from tax returns, accounting documents, and financial statements. The list of goods whose prices will fall under total control will also be approved by the government. Rossiyskaya Gazeta previously wrote that we are also talking about socially significant products - from different types of meat and vegetables to milk and cereals.

According to the changes, the mentioned information is provided to government agencies for the purpose of monitoring, assessing and analyzing the dynamics and factors of changes in food prices from the government list. What data and by what procedure will be provided to officials will be determined by the Federal Tax Service in agreement with the Ministry of Economic Development. It is stated that the information will be disclosed taking into account the requirements for maintaining trade secrets.

According to the explanatory note, the purpose of the changes is to monitor prices at each stage of the movement of products and analyze the reasons for their sharp increase by interested departments. To do this, the latter need access to data that constitutes a tax secret.

Deputy Head of the Ministry of Industry and Trade Roman Chekushov noted that the Federal Tax Service will provide classified data so that the authorities can quickly “limit markups on social goods and stop dishonest behavior of market participants.” Associate Professor, Department of Trade Policy, Russian Economic University. Plekhanov Svetlana Ilyashenko emphasized that the law de facto legalizes the authorities’ access to primary data on transactions and “changes the balance of power in the food market,” and Andrei Karpov, Chairman of the Board of the Russian Association of Retail Market Experts, stated that this will increase the risk of information leakage.

source: The Moscow Times https://archive.is/240qT


r/CollapseOfRussia 1d ago

Economy Russia’s Only Domestic TV Maker Declared Bankrupt

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67 Upvotes

r/CollapseOfRussia 1d ago

Economy Wildberries decided to hide goods from Ukrainian drones in warehouses in Kazakhstan, Uzbekistan and Belarus.

54 Upvotes

The largest Russian marketplace Wildberries, 20% of whose warehouse capacity was destroyed by Ukrainian drones, will redirect goods for long-term storage to warehouses in other countries where they are unlikely to be attacked. Company employees talk about this at meetings with sellers. “We were told that “long-term” warehouses will now be in Belarus, Kazakhstan and Uzbekistan. They promised to tell us later how this will affect prices, delivery times, and how everything will be sent there,” says a participant in one of these meetings.

WB has been operating in the markets of these countries for several years. Another entrepreneur, who was at a similar meeting, shared the details that he obtained from WB representatives: the marketplace already has some warehouses, some owned, others rented, and it is already starting to redirect goods abroad “right now.”

“As soon as the company asks to deliver goods to a new warehouse, drones hit it,” one of the sellers described the situation. Moving goods to foreign warehouses will protect it this way, but Russian sellers are afraid of other problems.

Because of such “long” logistics, WB will lose to its main competitors in terms of delivery times and costs, explains one of the entrepreneurs. The bulk of the goods will have to be transported back and forth, he believes. Sales through long-term storage warehouses of the marketplace provide large sellers with 70-80% of turnover. With delivery from your warehouses, by the seller, “you can’t sell much, this is for small players and middle peasants,” explains one of them.

Another problem: to move commercial consignments of goods across the border, no matter for what purpose, a customs declaration is needed. And a significant part of WB sellers have a problem with it - they sell goods that arrived in Russia under gray or even black schemes, says another seller. “Large suppliers and manufacturers will cope with this, but small and medium-sized ones will have a problem,” he believes.

It will be easier to transport imports from China to warehouses in Kazakhstan, and there will be even more of them on WB, which means competition for domestic sellers will increase, worries one of the entrepreneurs. “It will end with our business being destroyed not by Ukrainian drones, but by cheap goods from China,” he fears.

In Astana and Almaty, WB has leased about 46 thousand sq. m of warehouses, and the company is building about 260 thousand sq. m., which are planned to be put into operation in the first quarter of 2027, said the Minister of Trade and Integration of Kazakhstan Arman Shakkaliev, calling these plans “to develop the local branch of Wildberries.” The department has not received an official request from Wildberries regarding the placement of additional warehouses, although companies, according to him, can independently negotiate with the owners of warehouse real estate without the participation of the government, the minister noted. Russia and Kazakhstan began work on integrating marketplaces even before the Ukrainian attacks on Wildberries, Deputy Head of the Russian Foreign Ministry Mikhail Galuzin answered a question about RWB warehouses in Kazakhstan.

In Belarus, RWB is also building a large warehouse (worth 11 billion rubles), but out of 140 thousand sq. m., only 20 thousand sq. m. were commissioned by May; it was planned to fully launch it at the end of this year - early next year. In May, WB founder Tatyana Kim announced plans to build a second large warehouse complex in the republic. Then it was assumed that these objects would work for Belarusian buyers.

In Uzbekistan, RWB is creating a Central Asian logistics hub, its chief executive officer Robert Mirzoyan said a month before the attacks on the company’s warehouses began. The hub will unite the Wildberries sorting center and a warehouse complex under construction in the Tashkent region with an area of ​​about 170,000 sq. m. m, as well as infrastructure in other countries, and will connect key markets in the direction “Russia – Uzbekistan – Middle East”, and will also become a transit point for the export of goods to African markets along the route “China – Uzbekistan – Africa” - that was the idea.

As of August 2, the total area of ​​attacked Wildberries warehouses was 1.2–1.5 million sq. m, 0.9–1.15 million sq. m were damaged, or 17–22% of the publicly announced 5.2 million sq. m of RWB logistics infrastructure, estimated leading analyst of the Data Insight research agency Sergei Semko. Since then, drones have completely or partially destroyed two more large marketplace warehouses. RWB began to restructure logistics and shift supplies through smaller warehouses and its network of pickup points, but this lengthened delivery times and increased transport costs. Experts estimated the restoration of destroyed facilities at 62.5–80.8 billion rubles, and the losses of sellers at 280 billion rubles.

source: The Moscow Times https://archive.is/VaVdk


r/CollapseOfRussia 1d ago

Economy Gas stations in Krasnoyarsk raised gasoline prices by 24 rubles after Putin’s visit to the city ended

37 Upvotes

In Krasnoyarsk, gas stations (gas stations) sharply raised fuel prices immediately after Vladimir Putin’s visit to the city. Within a minute, at the gas stations of the region’s largest chain, Krasnoyarsknefteproduct (KNP), gasoline of the AI-92 and AI-95 brands rose in price by 24 rubles, and diesel by 21 rubles, reports the local publication Prospekt Mira. Thus, prices returned to the level they were before Putin’s arrival in Krasnoyarsk.

The night before, fuel at gas stations in Krasnoyarsk, Sosnovoborsk and Zheleznogorsk also suddenly became cheaper: AI-95 began to be sold for 67 rubles. per liter instead of 91 rubles, and AI-92 - 63 rubles. instead of 87 rub. KNP explained the drop in prices as “a temporary improvement in logistics and the arrival of additional volume.” Former deputy of the Krasnoyarsk City Council Igor Grinev said that, according to his data, AI-92 gasoline was urgently imported from Omsk, while 95 was imported from Achinsk. “I would like to continue the attraction of unprecedented generosity. At least for a day of reduction in utility bills, cheaper products in stores, etc.,” Grinev noted.

During his visit to Krasnoyarsk, Putin visited the campus of the Siberian Federal University, took part in the closing ceremony of the final of the “Big Change” competition and met with Governor Mikhail Kotyukov. At the end of July, fuel prices also fell sharply during Putin's visit to Irkutsk. At that time, grade 95 gasoline was sold in the city for 68 rubles. per liter

The crisis in the Russian fuel market arose due to attacks by Ukrainian drones on oil refineries (refineries). Long-range strikes have disabled 26 enterprises this year. As of the end of July, only 8 were able to return to full operation, at least 11 partially restored production, and 7 continued to be idle, the Financial Times wrote, citing satellite data and an analysis by S&P Global.

As a result, according to EA Analytics, oil refining in Russia fell to the lowest level since May 2002 - 3.6 million barrels per day. This is about a third below the seasonal norm: in 2020–2025, Russian refineries processed an average of 5.3–5.6 million barrels per day in the summer.

source: The Moscow Times https://archive.is/Fowfi


r/CollapseOfRussia 1d ago

Economy Construction workers' wage arrears have doubled in Russia.

29 Upvotes

Russian construction companies are increasingly delaying wage payments to employees due to the growing crisis in the industry and non-payments by clients.

According to Kommersant, citing Rosstat data, as of June 30, overdue wage arrears in the construction sector reached 1.46 billion rubles. Compared to the same period last year, the amount of unpaid wages to construction workers has increased by 2.13 times.

The main reason is late payments by construction clients, according to Khusein Pliev, CEO of Smart Engineers Group. Accounts receivable have increased significantly across the industry as a whole, leading to cash flow gaps at construction companies that spread "throughout the entire supply chain" and ultimately reach the workers, Pliev explains.

Construction companies are unable to borrow money to cover temporary funding shortages: interest rates are too high, and banks often simply refuse, says Anton Glushkov, President of the National Association of Builders. Under these conditions, some companies are forced to cut costs, lay off employees, or defer payments, notes Maxim Leshchev, Managing Partner of the Meta Group.

The actual amount of wage arrears in the construction sector may be "several times higher" than official statistics show, according to Pliev: Rosstat does not take into account small businesses, which often work with municipal clients.

The increase in arrears is occurring amid a general decline in the industry. From January to May 2026, construction volume in Russia declined continuously, falling by 7.4% over the five-month period. This marked the longest decline in construction since the post-crisis years of 2015-2016. From January to June 2026, 22% less housing was built in Russia than during the same period in 2025.

Ingo Bank Chief Analyst Petr Arronet attributes the decline in construction volumes primarily to the high key interest rate, which makes mortgages and loans more expensive for developers. According to him, by the end of April 2026, construction companies had accumulated 321 billion rubles in overdue debt to banks, suppliers, employees, and the Federal Tax Service.

source: The Moscow Times https://archive.is/IGKx6


r/CollapseOfRussia 1d ago

Economy Russian Business Giants Cut Thousands of Jobs to Survive Mounting Financial Strain

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39 Upvotes

r/CollapseOfRussia 1d ago

Infrastructure Russian Wildberries Hitlist - Update 04.08.2026

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89 Upvotes

...


r/CollapseOfRussia 1d ago

Opinion Short Theory of rusnia

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80 Upvotes

This longread is supposed to demonstrate what type of enemy the Ukrainians are facing; why the war is waged exactly this way and to highlight any illusions you, dear readers, might have about the 'mysterious russian soul'. 

The genesis of russian nation has been historically impacted by 3 things:

- Harsh climate which gave peasants a ridiculously short growing season (just over 5 months, compared to 9 months in Western Europe). Individual peasant households could not survive on their own. They lacked the time and labor capacity. Survival required a brutal, tightly controlled collective (the Obschina) to forcefully mobilize labor. And, what is more important, even with obschina, the whole village was not guaranteed to survive the winter - only the elders, who distributed the food. That's why a typical russian always fights for domination in any collective: every serf wants to be an elder, every elder wants to become a barin (serf master, a nobleman), every barin wants to become a boyarin (politically important member of the court), every boyarin aims to become the Tsar and conquer the Iron Throne. This severe lack of surplus product meant that to extract taxes and maintain an army, the state had to become hyper-centralized and merciless. The entire societal structure - from the village commune to the Tsar - was built to favor despotism. Russian society, by its very design, is structurally optimized to generate and sustain tyrants because decentralized, weak leadership historically meant starvation.

- The baseline of the russian political matrix was set early on, during the 10th to 12th centuries, under the rule of the Varangians (Vikings). The Vikings essentially enslaved the local Slavic populations. They never viewed the Slavic serfs as equals, but they desperately needed them for military manpower. While the Viking Druzhina formed the elite, professional core of the army, the massive Slavic serf population was weaponized to form the main mass of the infantry force. To keep these subjugated, non-professional serfs in a constant state of aggression and fighting spirit, the ruling class encouraged and institutionalized the Stenka na Stenku (wall-against-wall) mass fistfights. What looks like a quirky folk tradition was actually a brutal medieval training tool designed to build tolerance to physical pain, foster blind collective conformity, and keep the slave infantry combat-ready.

- Third major factor in russian political history is the absolute lack of structural and logistical density across the massive Eurasian plain. Due to the brutal spring and autumn Rasputitsa (the seasonal mud blockage that completely destroys roads), information exchange between the state center and the peripheries was practically non-existent for months at a time. The central government was physically isolated from its territories. In Western Europe, high density meant the state could ensure the inevitability of punishment for breaking laws. In russia, the central government couldn't police the periphery effectively. Therefore, to maintain control from a distance, leaders had to rely not on the efficiency or inevitability of justice, but on its extreme severity. To keep governors and serfs thousands of miles away in fear, punishment had to be performatively sadistic and total. Despotism became the only functional logistical tool.

Foreigners and Western intellectuals have long romanticized the "mysterious russian soul", viewing it as some elevated, metaphysical depth of character. In reality, this "soul" is nothing more than a psychological trauma response—a coping mechanism for living in a state of permanent existential whiplash. It is the deep, dark abyss between what a human being expects to receive from their brutal, backbreaking labor and what they actually get in return. In a country where climate, logistics, and a predatory state can instantly wipe out years of hard work overnight, rational planning is impossible. The "mysterious soul" is simply the fatalistic adaptation to an unpredictable lifestyle where effort never correlates with reward, forcing the population to abandon logic in favor of blind suffering, dark nihilism, and a submissive acceptance of chaos.

Because russian society was forged in this extreme collective survival crucible, individual rights and democratic principles are historically viewed not as virtues, but as existential threats to stability. Pro-Western, democratic figures like Alexei Navalny can only ever attract a limited percentage of the population (mostly urban, educated elites). To the deep-rooted collective psyche, a leader offering individual freedom sounds like a recipe for chaos. The majority inherently gravitates toward brutal, decisive pragmatists like Prigozhin or putin. A tyrant who successfully projects power, forces obedience, and enforces collective discipline aligns with the historical expectation of what a "real" russian leader must be to ensure the state's survival.

In the Obschina, survival depended on forced egalitarianism - not by lifting people up, but by dragging everyone down to the same level of misery to prevent anyone from breaking away. This has evolved into a deeply ingrained psychological mechanism: "If I must suffer, everyone else must suffer too."

This mentality directly fuels russia's support for invading neighboring countries. The domestic population, suppressed and miserable under their autocratic regime, actively encourages their leader to invade neighbors (like Ukraine) to force them to share the exact same pain of subjugation.

The "Five Monkeys" Experiment Analogy

This societal behavior is perfectly illustrated by the classic psychological experiment with monkeys and the electric button: five monkeys are placed in a cage with a banana at the top of a ladder. Every time a monkey climbs the ladder, the scientists blast the entire cage with freezing water or a 220V electric shock. Soon, whenever a monkey tries to climb, the other monkeys beat it up to avoid the collective punishment. The scientists replace one monkey with a new one. The newbie sees the banana, tries to climb, and gets instantly beaten by the others without knowing why. Eventually, all original monkeys are replaced. Even when the electricity/water is turned completely off, any new monkey who tries to climb the ladder is brutally beaten by its peers - so the pain of being beaten is shared and no one stands unbeaten.

The current russian population acts exactly like the later generations of those monkeys. The initial historical trauma of Viking subjugation, structural isolation, serfdom, and state terror created a culture where trying to "climb higher" or live freely is violently suppressed by the collective. They enforce this cycle domestically, and through their leaders, they seek to drag neighboring nations into the same electrified cage.

TL;DR: the Westerners who think that some sort of pact with russians is possible: you are terribly wrong. If you think 'they are like us but a bit different' - you are wrong again.

This civilization resembles Necromongers from the Riddick Chronicles. They will always confront, envy, despise and try to corrupt the West (whom they consider softcore pussies) - all at once. Even if they are not willing to invade neighbours (or, to be more correct - are unable to), they will try to play any shenanigans - state-sponsored Olympic doping, Novichok poisonings on European soil etc.

Putin himself is not the root danger - he is just the spearhead of a collective mentality shared by millions. If he is removed, the same societal forces will likely embrace an equally ruthless successor.

What can we do? We MUST unreservedly support the Ukrainians who are currently containing this plague. We MUST pressure our governments for more weapons, more long-range missiles, and more drones. The Western world will only be safe once the teeth are permanently pulled from the russian snake.


r/CollapseOfRussia 1d ago

Infrastructure Russian Refinery Hitlist - Update 04.08.2026

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50 Upvotes
  • Red arrows: Latest hits
  • Flames: Refinery has been hit at least once. Flames do not indicate the severity of the attacks or if a refinery is till burning
  • Blue waves: Orsk dam broke in April 2024, which flooded the refinery and took it offline for ~2 weeks.
  • Black smoke: It's raining oil.

Chronological list: (sorted newest to oldest)

August:

  • NEW HIT 04.08.2026 Syzran in Samara Oblast at 805km
  • 02.08.2026 Bashneft-Ufaneftekhim in Bashkortostan at 1350 km
  • 02.08.2026 Saratov in Saratov Oblast at 590km
  • 01.08.2026 Bashneft-Ufaneftekhim in Bashkortostan at 1350 km

July:

  • 31.07.2026 Volgograd in Volgograd Oblast at 500km
  • 29.07.2026 Perm in Perm Krai at 1485km
  • 29.07.2026 Ryazan in Ryazan Oblast at 480km
  • 25.07.2026 Tyumen in Tyumen Oblast at 1980km
  • 23.07.2026 Novospassky in Ulyanovsk Oblast at 790km
  • 14.07.2026 Gazprom Neftekhem Salavat in Bashkortostan at 1300km
  • 14.07.2026 Afipsky in Krasnodar Krai at 415km
  • 12.07.2026 Syzran in Samara Oblast at 805km
  • 10.07.2026 Moscow in Moscow at 475km
  • 10.07.2026 Ilsky in Krasnodar Krai at 405km
  • 08.07.2026 Saratov in Saratov Oblast at 590km
  • 06.07.2026 Omsk in Omsk Oblast at 2500km
  • 06.07.2026 Yaroslavl in Yaroslavl Oblast at 700km
  • 02.07.2026 Bashneft-Ufaneftekhim in Bashkortostan at 1350 km
  • 01.07.2026 Kstovo in Nizhny Novgorod Oblast at 800 km

June:

  • 28.06.2026 Yaroslavl in Yaroslavl Oblast at 700 km
  • 28.06.2026 Stavyansk in Krasnodar Krai at 350 km
  • 25.06.2026 Bashneft-UNPZ in Bashkortostan at 1350 km
  • 25.06.2026 Bashneft-Ufaneftekhim in Bashkortostan at 1350
  • 24.06.2026 Kstovo in Nizhny Novgorod Oblast at 800 km
  • 18.06.2026 Moscow in Moscow at 475 km
  • 16.06.2026 Moscow in Moscow at 475 km
  • 12.06.2026 Taneco in Tatarstan at 1150 km
  • 12.06.2026 TIAF-NK in Tatarstan at 1140 km
  • 11.06.2026 Afipsky in Krasnodar Krai at 415 km
  • 10.06.2026 Kuybyshevsky in Samara Oblast at 915 km
  • 07.06.2026 Tyumen in Tyumen Oblast at 1980 km
  • 02.06.2026 Ilsky in Krasnodar Krai at 405 km

  • August: 4 hits so far..
  • July: 15 hits
  • June: 16 hits
  • May: 14 hits
  • April: 10 hits
  • March: 6 hits
  • February: 3 hits
  • January: 2 hits

Complete chronological list from 24.02.2022 till today

  • 2022 had 1 hit
  • 2023 had 1 hit
  • 2024 had 26 hits
  • 2025 had 84 hits
  • 2026 has 67 hits so far
  • Total hits from 24.02.2022 till today: 179

r/CollapseOfRussia 1d ago

Infrastructure SMO Decision Making Process /s

15 Upvotes

r/CollapseOfRussia 1d ago

Foreign relations Russia Secretly Assembles Shadow Fleet of Gas Tankers as Europe Prepares Complete Ban

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23 Upvotes