Putin is facing a growing economic crisis. (Image: Getty)
Car dealerships in Russia are closing in their hundreds as the country’s economic crisis continues to deepen.
Late last year, the Russian Central Bank raised to a record high of 21% in an attempt to control soaring inflation.
The rate hike has affected both companies and shoppers equally, denting both business and consumer confidence.
For Russian businesses, the high pose an existential threat, as they struggle to pay back loans.
While Russian consumers are finding it increasingly difficult to get credit from their banks.
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A Lada dealership in Russia. (Image: Getty)
As a result, Russians have to cut back on their spending, which is seeing consumer sales plummet.
‘s car industry is the latest sector to feel the chilly winds of the growing economic storm.
Data from Gazprombank’s Autoleasing and AutoBusiness Review shows that 449 dealerships selling Chinese cars were forced to close last year.
This is more than in 2023, and things look to worsen in the current economic climate.
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The report says that passenger car sales in 2025 are likely to decrease by another 10% this year.
Meanwhile, ‘s metals industry faces a steep decline in output as demand for their products decreases.
According to a top economic expert, Western sanctions, which are beginning to bite, are the main cause of the downturn.
Kyrylo Shevchenko, the former head of ‘s National Bank, said that production of steel, nickel, copper and palladium is “tanking” and is symptomatic of a “deeper economic unravelling”.
In a post to his X social media account, he wrote: “Sanctions have cut off from key Western markets, and its pivot to Asia isn’t working as hoped.
“Domestic demand is also plummeting due to high & a crisis-driven economy.
“This isn’t just a bad year; it’s a long-term trend that signals a deeper economic unravelling, with industrial production set to keep shrinking.”