(MOSCOW, RUSSIA) – Russia is experiencing a significant economic slowdown marked by widespread retail closures, rising food prices and increased dependence on agricultural imports. Data from Russian media and government officials indicate that Moscow’s shopping centres are facing a sharp decline in activity, while national food imports have grown to levels that now exceed the country’s agricultural exports.
According to reports, 38 percent of retail units in Moscow’s shopping malls closed in 2025. Russian analysts attribute the decline to reduced purchasing power, high rental costs and weakened consumer confidence. Shops selling clothing, footwear and cosmetics are among the most affected, with both foreign brands that exited the country and local businesses struggling to operate in the current climate.
Officials from the Ministry of Agriculture and the Ministry of Finance are reportedly considering the introduction of food vouchers for lower income households who are increasingly unable to meet rising food costs. The proposal is linked to concerns about stagflation, tightening household budgets and an expanding budget deficit. Russian media outlets have also reported large scale cash withdrawals as some citizens express concern about the stability of the banking sector.
The Russian dictator’s emphasis on military spending continues to place pressure on the domestic economy. Ukrainian officials estimate that recent large scale missile and drone strikes cost Russia up to 1 billion US Dollars per night. Analysts note that such expenditure is adding strain to an already limited national budget, particularly as new taxes and higher value added tax thresholds affect businesses.
Agricultural imports into Russia grew by 15 percent in 2025, reaching 24.3 billion US Dollars. This exceeds agricultural exports by 3.8 billion US Dollars, raising questions about Russia’s claims of being self sufficient in food production. Rising fuel prices and transport costs across Russia’s large geographic area are further increasing retail prices for essential goods.
Some Russian commentators have begun discussing the potential for internal instability if economic conditions continue to deteriorate. They note that the combination of rising prices, supply shortages, increased taxation and pressure on logistics has exposed significant vulnerabilities in the country’s economic structure.
Economic analysts have warned that falling consumer spending and continued business closures could prolong stagnation, especially as the ruble loses value against major currencies. Reports indicate that wages are not keeping pace with inflation, reducing the purchasing power of many households.
The Russian government recently raised value added tax from 20 percent to 22 percent and lowered the turnover threshold for businesses required to pay the tax. Small agricultural firms, retail traders and local clothing producers have expressed concern that the changes will lead to further closures.
Tables from Russian media highlight the widening gap between imports and exports in the agricultural sector:
| Category | Value in US Dollars | Notes |
|---|---|---|
| Agricultural imports | 24.3 billion | Increased by 15 percent in 2025 |
| Agricultural exports | 20.5 billion | Imports exceed exports by 3.8 billion |
| Retail unit closures in Moscow | 38 percent | Shops affected across clothing, footwear, cosmetics |