Vladimir Putin needs Russian businesses to finance his war, yet thousands are closing as the Kremlin demands more money from the country's wealthiest men. Billionaires have resisted voluntary contributions, while the FSB is moving against profitable companies. Financial pressure is bringing Moscow into conflict with the same elites whose wealth and connections help sustain the war.
Sberbank research points to 15,000 business closures every month, triple the prewar pace. Russian banks carry approximately $136 billion in problem corporate loans and another $57 billion in risky restructurings. A projected $86 billion federal deficit now exceeds the country's remaining liquid national reserves, estimated below $45 billion. Across the regions, falling tax revenues and expensive civilian credit are weakening industries while military suppliers receive preferential treatment.
Putin's security services are targeting businesses that the state still needs for jobs, taxes, and production. Every seizure risks alienating powerful owners, while additional demands for money intensify elite resistance. Moscow's dependence on foreign technology makes replacing damaged equipment expensive, and weaker banks have less room to finance recovery. Decisions intended to keep the war funded are creating fresh disputes over property, loyalty, and power inside Russia's ruling system.
CHAPTERS:
00:00 - Intro: How Putin’s War Economy Is Collapsing
01:04 - Mass Business Closures Threaten Russian Banks
03:21 - Record Business Failures Surge Across Russia
05:18 - Problem Debt and Deficits Strain Russian Banks
07:28 - Soaring Deficits Force Russia to Sell Gold
09:17 - Russian Drone Production Depends on Foreign Tech
10:41 - FSB Asset Seizures and Refinery Strikes Paralyze Moscow
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