Nizhny Novgorod businesses struggle under tax burdens and high loan rates

Pavel Solodky, the Business Rights Commissioner for Nizhny Novgorod Region, highlighted the growing struggles of local businesses at a press breakfast on 10 June 2026. In the first five months of the year, his office received 96 complaints from entrepreneurs, with property disputes and tax issues being the most frequent concerns. Nizhny Novgorod Region currently leads Russia in subsidised lending through the Industry and Trade Ministry’s programmes. Yet, businesses still face severe financial strain. Macroeconomic instability, high borrowing costs, and tax burdens are major obstacles for local firms.

The key interest rate for corporate loans now stands at 20–22%, making borrowing unaffordable for many. Tax system changes, such as VAT payment rules and account freezes by authorities, further tighten liquidity. Some companies also report millions in unpaid debts owed by large state-owned entities, worsening their financial difficulties.

Not all sectors suffer equally. Agribusiness and agriculture remain the most stable, while metallurgy, construction, and manufacturing struggle the most. Export-oriented businesses are also under pressure due to the ruble’s unexpected strength. The currency was projected to reach 96.7 rubles to the dollar by late 2025 but currently trades around 77 rubles. Solodky’s office has documented a rise in grievances, reflecting the region’s economic challenges. High loan rates, tax pressures, and unpaid state debts continue to weigh on businesses. The disparity between the ruble’s actual and forecasted exchange rate adds another layer of difficulty for exporters.