In Russia, in the first quarter of 2025, state support for small and medium-sized businesses was reduced by almost half – from 127.8 to 72.3 billion rubles (or approximately from $1.6 billion to $900 million).
Russia cuts business support due to war
In percentage terms, the reduction in business support in the Russian Federation is 43%, the Center for Countering Disinformation reports. Telegram, based on new data provided by Russian sources on the financing of state support programs. And this is even less than in 2022, when the Russian Federation began a full-scale war against Ukraine.
Since the beginning of 2025, the Russian authorities have significantly reduced preferential lending programs for small businesses. First of all, participation in the “1764” program, which was previously one of the most popular, is now only available to 10% of enterprises that submit applications.
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“Selected” areas receive broader financial support: tourism, logistics, IT, science and manufacturing. Outside of it, the majority of small businesses, especially the service sector and local initiatives.
The Center for Social Development notes that support is being cut while the tax burden is growing and loans are becoming more expensive and unavailable. Continuing the war remains a priority for the Russian Federation, even if the price is the decline of entrepreneurship and the collapse of the middle class, the department adds.
