Russian Builders Face Wave of Bankruptcies: Intelligence Reveals Crisis Details.

According to inkorr.com: According to information from the Security Service of Ukraine, a significant number of bankruptcies are expected in the construction sector in Russia. Approximately 20% of developers are already on the brink of financial difficulties due to a sharp decline in sales and rising interest rates. It is predicted that this figure could rise to 30% in the near future.

Situation in Affordable Housing Construction

The worst situation is for companies engaged in the construction of affordable housing. More than 19% of developers have already changed the deadlines for the completion of their projects, turning them into 'problematic'.

'The industry suffers from low demand, limited state support, and resource outflow for the war against Ukraine. This has led to a reduction in sales, an increase in debts, and a freeze on construction. Investments in real estate fell by 44% in the first half of 2025,' the intelligence emphasized.

Challenges in the Banking Sector

The banking sector has significantly complicated conditions for borrowers, rejecting more than half of loan applications in June. Even clients with good credit histories faced difficulties when purchasing housing, as the real cost of a housing loan, including additional expenses, amounts to at least 25% per year.

Reaction of the Russian Government

As reported by the intelligence, the Russian government is considering the introduction of a moratorium on bankruptcies for developers, as well as measures for external rehabilitation and the creation of temporary state funds to complete problematic projects. At the same time, there is an emphasis on the imbalance of corporate loans in the construction sector.

Mass bankruptcies of developers could significantly threaten the Russian economy due to declining sales and risks in the banking sector. The Russian government is already taking measures to prevent the crisis, considering the introduction of a moratorium on bankruptcies and other initiatives. This indicates serious challenges facing the construction industry and their potential impact on the economy of the country as a whole.