(MOSCOW, RUSSIA) – Russian vloggers have begun documenting a growing number of closed shops, cafés and small businesses along the central streets of Moscow and Saint Petersburg, raising questions about the condition of the Russian economy amid the continuing war in Ukraine.
In recent online videos, vloggers walk through city centres counting shuttered storefronts and recording empty premises displaying notices such as “closed” or “for rent”. Many of them ask why businesses are disappearing from areas that were once among the most commercially active in the country.
Economic pressures linked to the war in Ukraine have strained both federal and regional budgets across Russia. Analysts say the conflict has diverted large amounts of public spending towards the military while reducing resources available for regional development and business support.
Moscow Mayor Sergei Sobyanin recently acknowledged financial pressures on the city administration and announced plans to reduce the number of municipal civil servants by about 15 percent. The cuts affect employees working within the local government system.
The mayor has also been providing frequent updates on drone attacks targeting military infrastructure around the Russian capital, while simultaneously reporting reductions in several government programmes.
Budget pressures became more visible at the beginning of 2026, when a number of Russian regions reported significant deficits. Moscow itself is estimated to be short of billions of dollars in its regional budget despite historically being the wealthiest city in the Russian Federation.
Other regions that previously benefited from energy exports have also begun reporting declining revenues. Areas that relied heavily on income from oil and gas exports are now recording financial losses as economic conditions tighten.
Small and medium sized businesses have been particularly affected. Russian bloggers and business owners say rising taxes have become difficult to manage. The threshold for value added tax payments has been lowered, increasing the number of businesses required to pay the tax.
As a result, some shop and café owners have posted videos announcing closures because they can no longer cover operating costs. Rising rents and higher prices for goods have also added pressure.
Larger businesses have attempted to compensate for losses by increasing prices, but economists warn this strategy risks weakening Russia’s middle class, which had only recently begun to expand after years of slow growth.
Internet restrictions and periodic disruptions affecting platforms such as Telegram have also created difficulties for entrepreneurs who depend on digital communication to run their businesses.
The closures are no longer limited to smaller regional towns. Observers say the trend has reached major urban centres, including Moscow and Saint Petersburg. Videos circulating online show empty shopfronts even in central commercial districts.
Some commentators argue that many Russians remain reluctant to openly link the economic downturn to the war against Ukraine, often questioning the causes without openly discussing the role of military spending and sanctions.
Nevertheless, the planned reduction of municipal workers in Moscow highlights the extent of financial pressure facing local authorities. The cuts represent a significant share of the city’s administrative workforce.
Officials have also indicated that Moscow’s investment programmes will be reduced by around 10 percent. The measures are intended to help address the growing budget shortfall.
Analysts say these developments illustrate wider economic challenges inside Russia. Public sentiment among previously apolitical groups appears to be shifting as financial pressures increase and concerns about potential military mobilisation persist.
Some Russians fear the possibility of broader conscription, particularly as the war continues and Ukrainian forces maintain strong resistance on the front line.
The economic difficulties now affecting businesses, workers and regional budgets suggest that the financial cost of the war is increasingly visible across Russian society.
