Information on current losses of the Russian Federation due to sanctions as of 17.07.2026.
1. Ukrainian drones targeted a rail hub in Kerch and attacked Russian tankers in the Black Sea.
– On the night of July 17, Ukrainian drones attacked Kerch in eastern occupied Crimea. According to monitoring reports, a rail hub, which is one of the key logistical centers supporting the Russian group on the peninsula, was hit.
– After a series of explosions, numerous fire outbreaks occurred in the area of the railway station near the Crimean bridge. Preliminary reports indicate that warehouses, trains on the tracks, and possibly the “Kerch” oil depot caught fire.
– Reports also suggest possible damage to the “Kerchensk” substation, which supplies electricity to the railway infrastructure. According to NASA FIRMS service, a large fire was detected in the station area.
– The rail hub in Kerch gained particular importance after numerous Ukrainian Armed Forces strikes on the transport infrastructure of occupied Crimea, as a significant portion of military cargo passes through it.
– Additionally, Ukrainian drones attacked six Russian tankers in the Black Sea overnight.
– Earlier, the Ukrainian Drone Systems Forces reported that from July 6 to 16, in the Azov and Black Seas, 147 ships of the Russian “shadow fleet,” used for exporting oil circumventing international sanctions, were targeted.
2. The largest state-owned industrial holding in Russia sharply reduced profits and reported a lack of funds for investments.
– Russia’s largest state industrial holding, “Rostec,” which includes over 800 enterprises across 60 regions of the country, reported a sharp decline in financial results.
– Despite a 25% revenue increase in 2025, mainly due to state defense orders, the company’s net profit fell by 42% to 76.4 billion rubles. The company acknowledged that their own funds are insufficient to launch new investment projects, indicating a deterioration in the financial state of even the largest industrial holding in the country.
– Financial problems have also affected the group’s key enterprises. Truck manufacturer “KamAZ” ended the year with a loss of 43 billion rubles after a sales drop of more than 20%. The largest tank producer “Uralvagonzavod” reduced its staff by 10% and shifted the civilian division to a four-day work week. “Russian Helicopters” reduced its profit by 2.6 times, and the United Engine Corporation incurred losses of 63 billion rubles, increasing its debt to almost 1 trillion rubles.
– Against this backdrop, Russian authorities have classified the financial statements of “Rostec,” complicating the assessment of the real state of the largest industrial holding in the country.
– Even significant military orders no longer compensate for rising costs and the deteriorating financial condition of enterprises that provide a significant portion of Russia’s military-industrial complex.
3. “Rosatom” postpones the construction of new nuclear power plants due to the worsening economic situation.
– The Russian state corporation “Rosatom” is reducing its investment program and postponing the implementation of several large projects due to the worsening economic situation.
– This year, the company’s investment volume will be 46% less than last year. The company stated that some projects have been canceled or postponed. Priority will be given only to those investments that provide the highest returns by 2030.
– Additionally, “Rosatom” plans to cut costs by 5% this year and by 10% by 2028 compared to the 2025 level. Such measures are explained by the necessity to increase efficiency amid an unfavorable economic situation.
4. Russia is hit by a wave of bankruptcies: the number of insolvent companies is rapidly increasing.
– High interest rates, tax increases, and a sharp economic slowdown have led to a noticeable increase in the number of bankruptcies among Russian companies.
– In the first half of 2026, Russian courts declared 3,550 legal entities bankrupt, which is 10.8% more than in the same period last year. The number of supervision procedures, the first stage of bankruptcy cases, increased even faster, by 20.9%, to 2,970 companies.
– At the same time, there has been a sharp increase in the number of notifications of intent to declare bankruptcy. The number of such applications from creditors rose by 18.5% annually, and from the companies themselves by 43% compared to 2025 and by 83% compared to 2024.
– Financial difficulties have affected a wide range of industries — from IT and retail to infrastructure companies and even manufacturers of products for the military-industrial complex.
– According to Rosstat, by the end of April, the overdue debt of Russian businesses to banks, counterparties, and the budget reached 7 trillion rubles, which is 20% more than a year ago.
– Companies have been under double pressure due to declining consumer demand and increasing tax burdens. An additional factor is the high cost of loans. According to estimates from a government-affiliated center, CMACP, on average, Russian companies are forced to allocate 37% of their pre-tax profits just to pay interest on bank loans.
– In several industries, the situation is even worse: in railway, shipbuilding, and aircraft construction, interest payments exceed profits eightfold, in woodworking, construction, and commercial services — by 4–6 times, in the chemical industry and automotive sector — more than threefold.
5. In Russia, due to the fuel crisis, gas stations have begun to be sold en masse.
– In Russia, amidst the fuel crisis, the number of ads for the sale of gas stations has sharply increased. In just the last month, more than 150 offers have appeared on platforms for the sale of businesses and commercial real estate.
– Independent gas stations as well as individual facilities of major oil companies are being put up for sale. The cost of the facilities ranges from 1 to 150 million rubles depending on location, equipment, and the condition of the station. Sellers include both independent operators and the largest oil companies, including Gazprom and Lukoil.
– While large companies explain the sales as asset optimization, independent networks are forced to dispose of their businesses due to deteriorating financial conditions and accumulated debts.
– The toughest situation is for independent gas stations, which form the backbone of the Russian fuel market — almost 20,000 out of 27,700 gas stations in the country. They are under double pressure: exchange prices for gasoline and diesel have sharply risen due to a fuel shortage following strikes on refineries by Ukraine, while the authorities are keeping retail prices at the level of inflation.
– As a result, selling gasoline has become unprofitable for many gas stations. Owners plan to use the proceeds from the sales to pay off debts.
– The financial problems of independent operators are already affecting fuel supply in certain regions, and the mass sale of gas stations has become another indicator of the deepening fuel crisis and growing problems in the Russian economy.
6. Russian billionaires have begun massively transferring capital abroad out of fear of an economic crisis and nationalization.
– The wealthiest Russian businessmen, including those close to Putin, have moved billions of dollars abroad over the past year, fearing a worsening economic situation and asset confiscation.
– In recent months, holders of large fortunes have actively transferred capital into cryptocurrencies, foreign real estate, and private investment funds. The most popular destinations have been the UAE, Cyprus, Turkey, Saudi Arabia, Monaco, and African countries. There has also been a sharp increase in purchases of luxury real estate in Dubai.
– Capital outflow has accelerated against the backdrop of a large-scale campaign to confiscate private assets in Russia and a slowdown in the economy. Business fears intensified after a closed meeting with Putin in March, where big business was effectively urged to make additional contributions to the budget to finance the war.
– Since the start of the full-scale invasion, the Russian authorities have significantly intensified the nationalization of private assets. In 2025 alone, the state seized 24 large assets with a total value of about $11 billion, which is three times more than the previous year.
– In total, from 2022 to the end of 2025, assets worth 6.5 trillion rubles were nationalized in Russia.
7. Russia loses control over Crimea due to massive Ukrainian drone strikes.
– The Ukrainian campaign using drones is increasingly undermining Russia’s military logistics in occupied Crimea, threatening Moscow’s ability to maintain control over the peninsula.
– Crimea, which has been Russia’s main military stronghold since 2014, is becoming increasingly vulnerable. Ukraine has significantly intensified strikes on critical infrastructure, including power substations, bridges, oil depots, airfields, and transport hubs.
– Drones also regularly disrupt road, rail, and sea connections between Crimea and Russia.
– Of the 692 Ukrainian attacks on Crimea since the start of the full-scale war, more than half occurred in the past 12 months, and almost one-fifth since June 2026, indicating a sharp increase in pressure.
– Further disruption of logistics through Crimea could significantly complicate the supply of Russian forces in southern Ukraine and increase pressure on Russia’s military and economic capabilities.
8. Hungary investigates possible treason by former Foreign Minister due to ties with Russia.
– In Hungary, an investigation has been initiated against former Foreign Minister Péter Szijjártó on suspicion of treason due to his possible ties with Russia. This was reported by Prime Minister Péter Magyar.
– According to him, the investigation is ongoing, but details are not being disclosed as the case contains a significant amount of classified materials from the Ministry of Foreign Affairs and other state bodies.
– The investigation was prompted by previously released recordings of phone conversations in which Szijjártó communicates with the Russian Foreign Minister Lavrov. In the recordings, the former minister informs the Russian side about meetings in the European Union, requests arguments for use at EU foreign ministers’ meetings, and, according to journalistic investigations, discusses the possibility of easing EU sanctions against Russia.
– During the election campaign, Péter Magyar publicly stated that such actions may constitute signs of treason and require thorough investigation.
– Szijjártó, who headed the Hungarian Foreign Ministry from 2014 until the end of Viktor Orbán’s government, has denied the accusations, calling his contacts with the Russian side common diplomatic practice.
– Shortly before the elections, an international consortium of journalists published an investigation claiming that the Hungarian authorities were systematically promoting the Kremlin’s interests in the European Union, in particular by seeking to ease sanctions against Russia and increase pressure on Ukraine.
9. The EU imposed sanctions against six representatives of the Russian military-industrial complex due to drone production.
– The EU Council has imposed sanctions against one individual and five Russian companies associated with the Russian military-industrial complex. The restrictions were a response to Russia’s ongoing aggression against Ukraine, including deadly attacks on Kyiv during the nights of July 1 and 5, 2026.
– The sanctions list includes five companies from the ABS Electro group, which develop and produce electronic and radio-electronic components for Russian drones. Specifically, they create systems that enhance the resilience of Shahed and Geran type drones against electronic warfare measures. The sanctions list also includes Irina Kharisova, the chairwoman of the board of directors of ABS Electro, who heads several companies within the holding.
– The sanctions involve freezing assets, prohibiting the provision of funds or economic resources to sanctioned individuals and companies, and banning Irina Kharisova from entering the EU.
– The European Council stated that the EU will continue to increase pressure on Russia, including by imposing new sanctions, and confirmed its unwavering support for Ukraine.
