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Russia's Economy Falters: Firms Slash Hours Amid War

10/9/2025

28 4 Full Breakdown

Summary

Story summary

Russia's economy remains strained as firms cut staff or hours amid war-driven demand weakness, with the government raising taxes.
Cemros and Alrosa adopted four-day workweeks to curb costs.
Overdue salary arrears have surged, signaling distress across sectors, including the coal industry employing about 150,000.
GDP growth is projected to slow to 1.0% this year, with unemployment at 2.1%.

History

Historical Context

The 1998 Russian economic crisis, triggered by the Asian financial crisis and falling oil prices, led to a dramatic ruble devaluation and a $22.6 billion IMF bailout. Today, firms like Cemros and Alrosa face similar challenges, implementing four-day workweeks amid rising salary arrears and a projected GDP growth of only 1.0%, highlighting ongoing economic instability and potential social unrest.

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Story summary

Russia's economy remains strained as firms cut staff or hours amid war-driven demand weakness, with the government raising taxes.
Cemros and Alrosa adopted four-day workweeks to curb costs.
Overdue salary arrears have surged, signaling distress across sectors, including the coal industry employing about 150,000.
GDP growth is projected to slow to 1.0% this year, with unemployment at 2.1%.

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