Russian businesses defy high rates with state-backed resilience at SPIEF

Russian businesses continue to show resilience despite high interest rates, according to VTB’s latest findings. At the St. Petersburg International Economic Forum, bank officials highlighted strong investment trends among small and medium-sized enterprises. State-backed support programs are playing a key role in sustaining growth across multiple sectors. Ruslan Yeremenko, a member of VTB’s board, shared the bank’s observations during SPIEF. He noted that investment loans now make up over a third of VTB’s lending to small and medium-sized businesses. This demand persists even as borrowing costs remain elevated.

The construction sector faces mixed conditions. While mass mortgage demand has weakened due to high rates, no systemic defaults have emerged. Instead, real estate remains a preferred savings tool, with ageing housing stock driving ongoing development. Meanwhile, developers are increasingly focusing on large-scale territorial projects rather than isolated constructions.

State support has proven effective in boosting corporate performance. Preferential programs help businesses lower interest burdens, freeing up funds for expansion. Agriculture and tourism stand out as success stories—Russia has become a major meat exporter, while hospitality continues to grow. Government measures are regularly updated, ensuring they stay aligned with economic needs. VTB’s data suggests that targeted state support and adaptive lending are helping businesses navigate challenges. Investment activity remains robust, particularly in sectors like agriculture and real estate. The bank expects these trends to support long-term economic stability despite current borrowing costs.