Information on Russia’s current losses due to sanctions as of 04.09.2026.
1. Ukrainian UAVs continue to attack Sochi: drones hit air defense systems and an oil depot, airport operations halted.
– The city of Sochi faced a new massive drone attack on the night of September 4. A series of explosions occurred in the city and on the federal territory of Sirius, followed by fires and prolonged detonations.
– One of the targets was the Russian air defense area near the Psou River on the border with Abkhazia. A division with S-300/S-400 systems is located there. A fire broke out on the territory after the strike, and witnesses recorded a powerful detonation.
– Another strike hit an oil depot in the Adler district of Sochi. According to monitoring channels, this object had been attacked earlier.
2. Russia’s oil and gas budget revenues fell to a 7-month low after strikes on refineries.
– The oil and gas revenues of the Russian federal budget plummeted to 424 billion rubles in August — the lowest since January. Revenues decreased by 16% over the year and by 43% compared to the average level of March–July.
– The main blow was dealt by low oil prices: the average price of Urals in August fell to $59.02 per barrel against $86 in June and $94 in May.
– Additionally, the budget is losing money due to Ukrainian strikes on refineries: at least 7 plants halted production in August. In 8 months, oil and gas revenues fell by 17% — to 5.02 trillion rubles.
– Instead of the planned 8.92 trillion rubles for the year, the budget is estimated to receive only 7.5–8 trillion rubles — the lowest since 2020.
– Meanwhile, the Kremlin is forced to pay oil companies more to keep refining afloat. In August, companies received 304.6 billion rubles in subsidies, and from April–August — already 1.525 trillion rubles.
3. Russia’s industry sharply declined.
– Russian industry in August sharply transitioned from growth to contraction. The manufacturing PMI index fell to 48.8 points from 50.7 in July. A figure below 50 indicates a reduction in business activity.
– According to S&P Global, both domestic demand and export orders have simultaneously declined. Manufacturers’ costs have risen to the highest since January — fuel and imported components are getting more expensive.
– The weakening ruble further increases production costs. Russian enterprises find themselves in a double bind: selling becomes harder while production costs rise. Instead of lowering prices, companies are increasing their selling prices to try to maintain margins. As a result, the Russian economy faces a dangerous combination: production is falling while prices are rising. This is a sign of stagflation, placing the Central Bank of Russia in a predicament: lowering the rate amid high inflation is risky, but maintaining it high puts even more pressure on industry.
– The maneuvering space for Russian authorities is rapidly narrowing: any decision by the Central Bank may exacerbate one of the problems — inflation or economic decline.
4. Russian companies are fleeing from the Far East to China due to high taxes and expensive loans.
– Russian companies in the Far East have begun to re-register in China due to high taxes and expensive loans. Chinese partners offer Russian businesses 3% loans, lower taxes, and grants for capital expenditures, attracting companies to Chinese industrial and technology parks.
– About 3,800 organizations with Russian participation are already operating in China. These are mainly importers, manufacturers of electronics, equipment, consumer goods, auto components, and representatives of light industry.
– The large-scale transfer of factories remains challenging due to significant capital costs, so such cases are still rare. Meanwhile, China is increasingly enticing Russian business, offering conditions that the Russian economy can no longer provide.
5. Profits of Russian companies fell by 8.3%, and losses increased — Russia’s budget is losing tax revenues.
– In the first six months of 2026, 42,700 Russian companies made a total profit of 17 trillion 58 billion rubles — 8.3% less than the previous year.
– Meanwhile, 21,500 companies recorded losses totaling 5 trillion 361.8 billion rubles. Their total losses increased by another 5% year-on-year. For the Russian budget, this is a double blow: business profits are shrinking, and the number of loss-making companies is growing. This narrows the base for profit tax while budgetary expenses continue to grow.
– Reasons include expensive loans due to high key interest rates, increased costs of imported components, and falling margins.
– Part of the Russian business is shifting from a “earning less” mode to a situation where expenses already exceed income.
6. The USA may delay sanctions against Russia until November.
– The US House of Representatives may postpone consideration of the bill on new sanctions against Russia at least until the November elections in Congress.
– Speaker of the House of Representatives, Mike Johnson, stated that the document raises concerns not only among Democrats but also among some Republicans. The US Senate previously quickly approved the bill, but now congress members fear that new powers for Donald Trump regarding tariffs could raise global oil prices and affect the US’s trading partners.
– The bill grants the US president the right to impose 100% tariffs against the five largest purchasers of Russian oil and natural gas, as well as five countries that help Moscow circumvent sanctions.
– Among the main targets are China, India, and Turkey. For Russia, this means that potentially very painful restrictions remain in question in the US Congress.
7. Slovakia blocked the annual extension of EU sanctions against Russia.
– Slovakia became the only EU country to oppose a 12-month extension of individual sanctions against Russia. Due to Bratislava’s position, EU ambassadors could not agree on a decision.
– The current sanctions, which have so far been extended every six months, will end on September 15, 2026. The EU wanted to move to an annual term to avoid returning to this issue every half year.
– Meanwhile, the EU is discussing the addition of 27 individuals and entities to the sanctions list and freezing their assets.
– Now the package and extension terms will be reconsidered by technical experts. Unanimity of all 27 EU countries is required to make a decision.
