Magnit Ends 2025 with Record Loss of 22.5 Billion Rubles

Magnit, which holds the title of the largest retail network in Russia based on the number of outlets, has reported a staggering net loss of 22.5 billion rubles for the year 2025. According to The Moscow Times, this financial setback is the first of its kind for the company since its inception over twenty years ago, prompting significant alarm among investors and market analysts.

As the year came to a close, Magnit operated a total of 32,000 retail locations across 72 regions of Russia. Despite the company's revenue increasing by 11%, reaching 3.1 trillion rubles, its profit from sales plummeted by 13% to 138.7 billion rubles. The primary reason behind these financial difficulties has been identified as a surge in debt burden; due to the rise in the key interest rate, the costs associated with servicing loans skyrocketed by 74%, amounting to 163.9 billion rubles.

Information presented in the report indicates that Magnit's losses are not an isolated incident but rather reflect a broader trend observed within the Russian economy. The high key interest rate set by the Central Bank of Russia continues to exert pressure on the entire real sector of the economy, leading to an increase in financial hardships among businesses.

Earlier reports indicated that Russia's oil and gas revenues in 2025 fell to their lowest levels since the COVID-19 pandemic. Consequently, the Russian Federation's budget may face a substantial deficit as early as the beginning of 2026, with the aggressor country's government acknowledging a significant shortfall in oil and gas revenues.

Ukrainian intelligence has also reported that the financial condition of medium and large enterprises in Russia continues to deteriorate, indicating a growing imbalance in the corporate sector. More than half of the large companies in Russia finished 2025 with a decline in profits, and many have either cut back or completely frozen their investment projects. A significant number of these enterprises are preparing to lay off employees.

On February 24, 2026, it was revealed that approximately 300 companies in Russia are planning to close, highlighting serious issues within the economy. For the first time in history, 74 Russian regions found themselves in a financial hole, triggering a wave of mass business closures across the country. The Russian Ministry of Finance has acknowledged that the deficit in the country's treasury is growing at an unprecedented rate.

Furthermore, Rosstat has confirmed that over 17,000 Russian enterprises reported losses, which serves as a troubling signal for the economy. VkusVill, one of the major grocery retailers in Russia, became the first to begin downsizing its retail network, closing 286 stores by the end of 2025. These developments underscore the severe challenges facing the Russian economy amid increasing financial instability.