Society & Trends

Central Bank finds mass desire among Russians to return to Soviet-style economy

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The Bank of Russia has published results of a study on the dominant economic values of citizens. According to the regulator’s findings, the ideal for a significant portion of respondents is a self-sufficient “factory-country,” modeled after the Soviet Union or modern-day China. Those surveyed emphasize state sovereignty, industrial might, and total independence from foreign markets. Within this “nuclear economic narrative,” Russia is perceived as a country with limitless natural resources and rich human capital, which should allow it to produce all consumer goods domestically. Notably, Belarus also made the list of economic ideals, while the US economy is perceived as a “bubble of financial speculation” devoid of real production. Demand for state regulation and the fight against “greed” The study pays special attention to Russians’ views on inflation. Most respondents see the cause of rising prices not in monetary factors, but in “business greed” and the desire of intermediaries to “warm their hands” at the expense of others. The only effective method suggested to combat inflation is harsh administrative price regulation by the state. Respondents insist on the need to fix the cost of basic food items, clothing, medicines, and children’s goods. According to the Central Bank, such logic reflects deep distrust of market mechanisms and a yearning for a paternalistic management model where the state assumes full responsibility for the distribution of benefits and control over private sector profitability. Analytical summary: The rising popularity of the Soviet model signals a public disillusionment with the market economy amid sanction pressure. In 2026, this will increase public pressure on the government to freeze prices, which, if market laws are ignored, will inevitably lead to commodity shortages and a decline in product quality.

Massive losses for private investors due to a wave of defaults in the debt market

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A sharp increase in the number of corporate defaults in 2025 dealt a major blow to the capital of individuals. According to the Bank of Russia’s review, private investors held 45% of all bonds of companies that defaulted for the first time during the reporting period. The total volume of citizen investments remaining in the assets of defaulted issuers is estimated by the regulator at 22 billion rubles, highlighting the vulnerability of the retail segment to systemic economic risks. Statistics of affected parties and trading dynamics The Central Bank recorded that 163,000 people conducted transactions with the securities of troubled companies throughout the year. Although some investors managed to exit their positions before the official declaration of insolvency, a significant mass of holders faced a partial or total loss of their invested funds. The high participation of individuals in bonds with low credit ratings became a key factor in such large-scale losses amid the general slowdown in business activity. Analytical conclusions and consequences The current situation demonstrates a critical decline in the stability of the domestic debt market. Massive defaults undermine the confidence of private investors in the stock market as a savings tool, which in 2026 will lead to capital outflow into more conservative instruments or cash currency. The reduction in the inflow of retail investment will limit the corporate sector’s ability to refinance debt, creating a “domino effect” risk for companies with high debt loads.

Russian New Home Sales Plunge 50% Following Subsidy Cuts

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Russia’s primary housing market has sharply contracted: in February, apartment sales fell 1.5 times to 1.6 million sqm, according to Dom.RF. Developer revenue dropped by a third to 333 billion rubles. Year-on-year, the decline is evident in both floor space (-13%) and monetary value (-11%). Family Mortgage Crisis The primary driver of the collapse was the tightening of “Family Mortgage” terms. Due to new restrictions, mortgage lending volumes fell by 40% in February (to 285 billion rubles). The developers’ heavy reliance on state subsidies led to an immediate demand drop following the cuts. End of the Cheap Money Era The housing market has reached a deadlock: without state support, current prices are unaffordable for most citizens. High interest rates and reduced subsidies are forcing developers to find new survival models, threatening the stability of the entire construction sector.

Demand for Evil Eye Talismans in Russia Increases by 120%

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Mass anxiety in Russia is transforming into a fascination with the occult. According to First Data, demand for protective amulets surged by 120% in the first two months of 2026. Over 970,000 esoteric items were purchased on marketplaces, with total spending reaching 312 million rubles. Notably, Russians spend approximately 100 million rubles every month specifically on “evil eye protection.” Aspen Stakes and Zodiac Symbols A literal boom has been recorded in the talisman keychain segment, with sales skyrocketing by 237%. Interest in zodiac-related attributes increased by 213%. The primary audience (66%) consists of women aged 35–45. In addition to amulets, shopping carts increasingly feature incense, wormwood for smudging, and even aspen stakes. Middle Ages as a Refuge from Reality For Europe, this surge in occultism in the 21st century is a clear sign of profound psychological distress within society. When rational institutions and confidence in the future are destroyed, the population of the RF turns en masse to magical thinking. The rising sales of aspen stakes and charms against the backdrop of sanctions and mobilization serve as a diagnosis for the aggressor’s social system: society sees no way out in reality and attempts to shield itself with primitive superstitions.

Utility Shock: Russian Housing Tariffs Hit a 16-Year High

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The utility collapse now has a financial price tag. In January 2026, average housing and utility (HCS) tariffs in Russia surged by 15.02%, the sharpest spike since September 2010. Rosstat data confirms that no region in the country saw an increase of less than 10%, turning January bills into a total shock for the population. Regions Leading the Price Surge In several federal subjects, bill amounts jumped by more than a fifth. The record-breakers include Mordovia (+23.65%), the Kemerovo Region (+22.9%), and the Perm Krai (+20.23%). Hot water prices rose by 16%, cold water by 15.5%, and gas climbed nearly 15%, hitting a 12-year high. A Shift in Public Anxiety According to FOM polls, a record 45% of citizens named rising tariffs as their primary concern in March—a five-year high. For Europe, such dynamics in a major resource-exporting nation look like an outright plunder of its own citizens to plug budget holes. And this is just the beginning: the government has already approved a second wave of increases for October, which will raise rates by another 8–22%. The aggressor’s resource base is depleting, and Russians are now paying for the Kremlin’s ambitions directly out of their own pockets.

The Toll of an Era: Inflation in Russia Exceeds 900% During Putin’s Rule

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The real cost of living in the Russian Federation has transformed beyond recognition over the last quarter-century. Since Vladimir Putin came to power, consumer prices have surged 10.3-fold. According to calculations by the “To Be Precise” project based on Rosstat data, goods and services that cost just 100 rubles in early 2000 cost approximately 1,033 rubles by the end of 2025. Cumulative inflation over 26 years reached a staggering 930%. Regional Poles of Inflationary Shock The average annual price growth of 9.4% was distributed extremely unevenly across the country. The Yamalo-Nenets Autonomous Okrug felt the impact the least, with prices rising 8.1-fold. At the other extreme was the Ulyanovsk Region, where the cost of living skyrocketed 13.4-fold—one-third higher than the national average. Similar critical situations were recorded in Ingushetia (13.3-fold), as well as the Kaluga and Kursk regions (12.8-fold). The Price of “Stability” Through a European Lens For Europe, where price stability is the foundation of the social contract, these RF figures represent a chronic devaluation of citizen welfare. While state propaganda focuses on external threats, the internal resources of the population are being eroded by unprecedented price hikes. This “invisible confiscation” of income explains why, despite formally high GDP figures, the real standard of living in Russian regions continues to degrade, making the aggressor’s economy increasingly fragile.

Digital Curtain: Moscow Begins Large-Scale Testing of “White List” Internet

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Free internet in the Russian capital is becoming a thing of the past. Authorities have launched extensive testing of a “white list” system, where users can only access state-approved resources. According to “Kod Durova” sources, testing has already affected public transport: on certain lines of the Moscow Metro, it is now impossible to access even Telegram via the free Wi-Fi. District Isolation and the Capital as a Testing Ground Connectivity restrictions in Moscow have been ongoing for about a week. RBC sources confirm that the Ministry of Digital Development has moved from regional trials to blockages in the capital. Telecom operators have received orders to limit access to websites not included in the “approved list” in specific city districts. This marks a shift from blocking specific prohibited sites to a model of total isolation, where everything not officially permitted is forbidden. The Chinese Path and the End of Digital Openness For Europe, the implementation of “white lists” is final confirmation that the Russian Federation has chosen a path of digital authoritarianism modeled after China. While the country’s economy stagnates and healthcare spending is slashed, the state is investing massive resources into creating a “sovereign RuNet.” This policy deprives citizens of access to independent information and transforms the internet from a space of opportunity into a tool of total control, further severing Russian society from the global information sphere.

Healthcare Under the Knife: A Quarter of Russian Regions Slash Medical Spending Amid Budget Holes

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The social sector in the Russian Federation has begun to crumble under the weight of military expenditures. In 2026, nearly a quarter of the country’s regions (19 out of 82) officially cut their healthcare budgets. According to budget reports analyzed by “IStories”, this marks an all-time low since the start of the war. For comparison, only 5 regions cut medical spending in 2025; that number has now surged nearly fourfold. Record Savings Against a Trillion-Rouble Deficit In total, regional authorities will “save” about 107 billion roubles on public health this year. The Vologda Region leads the “optimization” efforts, slashing its budget by 39%. In the Irkutsk and Kemerovo regions, medical budgets shrank by more than 30%, while the Moscow Region lost a staggering 40.6 billion roubles in absolute terms. The reason is simple: the combined regional budget deficit reached a historical peak of 1.478 trillion roubles, increasing 3.6 times in just one year. The Aggressor’s Dilemma: Guns Instead of Medicine For a European observer, this trend is a classic sign of the depletion of a country’s internal resources. While the federal center reports income growth, 74 out of 82 regions are facing financial black holes. Forced cuts to hospitals and pharmaceutical procurement will inevitably lead to higher mortality rates and the degradation of human capital. The RF economy increasingly resembles a closed system where maintaining military potential comes at the direct expense of the population’s physical survival.

The End of Convenience: Neighborhood Store Openings in Russia Plummet Sixfold

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Russian retail is facing a sharp cooling in its most dynamic market segment. By the end of 2025, the pace of opening new convenience stores (neighborhood stores) crashed 6-fold — the largest drop since 2017. According to Infoline data, the top 200 FMCG retailers opened only 952 new locations, compared to 5,660 the previous year. A format that was long considered a “gold mine” is rapidly losing profitability amid mass consumer belt-tightening. Belt-Tightening and the Liquor Store Crisis The hardest hit were the expansion leaders of previous years. The most significant decline in activity was seen in the Krasnoye & Beloye and Bristol liquor chains, as well as Vkusvill and Yarche. The reasons are clear: Russian purchasing power is falling, while business costs — from logistics to rent — are soaring. With payback periods for new outlets stretching to critical levels, retailers are opting to close unprofitable stores rather than fighting for customers in depressed regions. Social Degradation Disguised as Optimization For Europe and developed markets, the contraction of neighborhood retail is a surefire sign of a deep consumer crisis. While state media in the Russian Federation report on import substitution, the real sector is shrinking its physical footprint in accessible areas. This leads to increased monopolies of major chains and a decline in service quality for ordinary citizens. The aggressor’s economic resource base is being depleted not just at the technological level, but at the level of basic consumption, turning comfortable urban environments into survival zones.

Breaking Point: One in Three Small Businesses in Russia Considers Closing Due to Tax Hikes

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Russian small business owners are facing an unprecedented wave of pessimism. According to a joint study by FOM and HSE University, 31% of entrepreneurs are considering closing or selling their businesses in the first quarter of 2026. This is an 8-percentage-point increase compared to last year and marks an all-time high since monitoring began in 2021. The primary drivers are sharp tax increases and a general economic downturn. Record Pessimism and Survival Mode Business expectations for the current quarter are grimmer than during the 2022 crisis. Over half of respondents (52%) are convinced their situation will worsen, while the share of optimists has plummeted to a historic low of 12%. The study highlights a disturbing trend: by early 2026, nearly 40% of small enterprises have entered “survival mode.” This indicates that growth resources are entirely exhausted, with operations focused solely on covering current costs and tax liabilities. The Tax Deadlock for the Private Sector The rising fiscal burden comes at a time when the reliability of state statistics is increasingly questioned and government focus is shifted toward defense spending. For small businesses without access to state contracts, tax hikes act as a prohibitive barrier. The potential exit of one-third of entrepreneurs from the market could lead to the erosion of the service and retail sectors, deepening the economy’s reliance on the public sector and large monopolies.