{"id":508225,"date":"2026-02-27T20:25:13","date_gmt":"2026-02-27T20:25:13","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/508225\/"},"modified":"2026-02-27T20:25:13","modified_gmt":"2026-02-27T20:25:13","slug":"russias-industrial-core-under-strain-as-massive-job-loss-fears-grow-amid-wartime-slowdown-united24-media","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/508225\/","title":{"rendered":"Russia\u2019s Industrial Core Under Strain as\u00a0Massive Job Loss Fears Grow Amid Wartime Slowdown \u2014 UNITED24 Media"},"content":{"rendered":"

Russia\u2019s war-driven economy is\u00a0facing serious pressure from sanctions and falling income. In\u00a0the Nizhny Novgorod region, a\u00a0major center for defense and car manufacturing, businesses are struggling.<\/p>\n

Local industrial groups say the situation is\u00a0causing \u201cserious concern\u201d and have asked the government for urgent help, according<\/a> to\u00a0Bloomberg on\u00a0February\u00a027.<\/p>\n

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Investment and production have dropped sharply over the past year. Large state companies like Rostec and Roscosmos are not paying their bills on\u00a0time. This has left local businesses with over $1.3 billion in\u00a0unpaid invoices. To\u00a0stay open, many firms are taking out loans with interest rates higher than\u00a020%.<\/p>\n

The financial crisis could lead to\u00a020,000 job losses in\u00a0the region by\u00a0the end of\u00a0the year. Some major companies have already started cutting working hours to\u00a0save money. This is\u00a0a\u00a0big change from last year when the region had almost no\u00a0unemployment.<\/p>\n

While the Kremlin is\u00a0spending heavily on\u00a0Russia\u2019s full-scale invasion of\u00a0Ukraine, many regions are facing growing budget gaps. Nizhny Novgorod expects a\u00a0deficit of\u00a0$387.6\u00a0million this year. <\/p>\n

\u201cWe\u00a0have had to\u00a0turn down ministries on\u00a0spending that is\u00a0genuinely important but not an\u00a0immediate priority,\u201d said Regional Governor Gleb Nikitin.<\/p>\n

\"Russia\u2019s<\/p>\n

Read more<\/p>\n

CategoryLatest news<\/a>Russia\u2019s Economy \u201cEntering Its Worst Crisis in Decades,\u201d Says Ukrainian Intelligence<\/a><\/p>\n

\n Feb 10, 2026 13:43\n <\/p>\n

Sanctions have also hurt the region\u2019s car industry. GAZ Group, which once worked with European brands, saw sales fall by\u00a033% last year. <\/p>\n

While some factories making military equipment for the invasion are still busy, most civilian businesses report that profits have dropped by\u00a0half and new orders have stopped.<\/p>\n

Earlier, David O\u2019Sullivan, the European Union\u2019s special envoy<\/a> for sanctions, acknowledged that while restrictions were not a\u00a0\u201csilver bullet,\u201d they had exerted a\u00a0significant impact on\u00a0Russia\u2019s economy. He\u00a0noted that by\u00a0early 2026, the building up\u00a0of\u00a0a\u00a0war economy at\u00a0the expense of\u00a0the civil sector had made the entire system increasingly unsustainable.<\/p>\n

Despite Russia\u2019s efforts to\u00a0maintain its military campaign, oil revenues had fallen sharply, inflation had hovered near 6%, and interest rates had climbed to\u00a0approximately 16%. <\/p>\n

O\u2019Sullivan also highlighted that the EU\u00a0had successfully targeted Russia\u2019s shadow fleet and tightened controls on\u00a0sensitive components found in\u00a0weapons systems, leading to\u00a0a\u00a0critical state for the Russian economy as\u00a0it\u00a0faced the pressure of\u00a0the full-scale invasion.<\/p>\n

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