A Wave of Bankruptcies Is Coming to Add to Putin’s Economic Pain

Russia’s $1.6 trillion economy is going to be dealt another blow when a moratorium is lifted on companies filing for bankruptcy, Bloomberg News reported. The measure, which was a condition of government pandemic support, helped protect healthy businesses from creditors but left those that won’t survive limping along as zombies. It expires in October. “It’s like a life-support machine for companies -- if there isn’t treatment, they will just die when it’s switched off,” said Yuriy Khalimovsky, a director at Deloitte’s legal service in St. Petersburg. “When the moratorium is lifted there will be a big wave of bankruptcies.” The surge in corporate failures threatens to compound an already painful year for Russia’s economy, which is heading for its worst slump in more than a decade. Read more