Sanctions Impact Russian Business: How Restrictions Are Destroying the Kremlin’s Economy
Despite assurances from Russian propaganda about internal market stability, the real picture of Russia’s economy has significantly changed under the influence of Western-imposed sanctions.
According to Ukraine’s Foreign Intelligence Service, over 78% of Russian enterprises have experienced serious difficulties in their operations due to economic pressure and international restrictions.
More than half of these companies report major challenges that hinder their ability to operate normally, while 19% have been forced to completely reorganize their activities or even shift employees to shorter workweeks.
Moreover, many Russian business owners are seeking alternative solutions, such as reorienting supply chains through countries considered ‘friendly’ to Russia and its regime.
Intelligence indicates that nearly half of the companies are attempting to bypass sanctions by relying on suppliers from countries that do not impose restrictions, while 24% are still searching for ways to avoid total collapse.
This points to a deepening crisis — many enterprises are reducing production or ceasing operations altogether, which is especially evident in the metallurgy, cement, and railway industries.
Experts note that these measures reflect Russia’s growing isolation and the lack of viable solutions beyond illicit or circumvention schemes.
While in developed countries the concept of a four-day workweek is becoming a symbol of social progress and higher quality of life, in Russia, such trends are exploited merely to mask underlying economic problems and the ongoing crisis affecting the country.