2026 Will Be a Year of Great Difficulty for Small Business: In Russia, the War Economy Shows Its Limits
An analysis of the challenges facing small businesses in Russia due to the country's focus on military spending amid ongoing conflict.
The article from Le Figaro discusses the economic challenges facing small businesses in Russia as a result of the country's 'war economy,' which has prioritized military spending over other sectors. The focus on military objectives, particularly in the context of Russia's ongoing conflict in Ukraine, has resulted in diminished opportunities for the vast majority of Russians, leading to greater economic stagnation and reduced growth prospects in various industries. As a result, the balance of investment has shifted away from civil sectors, endangering the development of the nation's economy.
The report highlights that while Russian President Vladimir Putin initially aimed for a comprehensive mobilization of resources to support military objectives, this goal has not been effectively reached even after four years of conflict. The article criticizes the extent to which the Russian economy has been subjugated to military needs, emphasizing the unexpected hardships posed to small businesses, which find it increasingly difficult to operate and thrive in a landscape dominated by state-funded military efforts. The article raises concerns about the long-term viability of small enterprises in this context.
In conclusion, as 2026 approaches, there are growing fears that small businesses will continue to face substantial hurdles, exacerbated by the limitations imposed by the war economy. The implications of this transformation raise important questions about the overall economic health of Russia and the welfare of its citizens, signaling a potential crisis for the small business sector that serves as the backbone of the economy.