The global economy, because of the conflict in the Middle East in 2026, has faced an unprecedented combination of geopolitical and economic challenges. The Middle East conflict, which began in late February 2026, became a catalyst for profound structural changes in the global trading system, which was already under pressure from rising protectionism and economic […]

Endless illegal immigration, unaffordable energy, draconian speech policing – we're being conditioned to accept outrageous things as normal, says Nick Rendell. Now add to that economic crashes.

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More than 50 Russian companies could default on their bonds this year, the most since 2009, a rating-agency analyst told Russian newspaper Izvestia, which reported it on 6 October.

Russia's wartime economy is straining under high interest rates, and the budget is too: the 2026 deficit has nearly doubled from the earlier forecast to a record $88 billion, with more deficits planned for the next three years as Moscow raises taxes to fund the war and plans its biggest defense budget since the full-scale invasion began.

A default is a situation in which a company cannot make promised interest payments to investors on time or repay borrowed money. If a payment is not made by the agreed deadline, the company becomes delinquent, which under certain conditions is recognized as a default.

So far this year, 20 companies have defaulted for the first time, compared with 24 in all of 2025, said Mikhail Nikonov of the Expert RA rating agency. Most of the companies that missed payments are small issuers of high-yield bonds, Izvestia reported.

In 2026, Russian companies have missed payments totaling 41 billion rubles (about $490 million), compared with 34 billion rubles (about $410 million) the previous year, according to investment bank Sinara.

Russia faces a new wave of corporate defaults

By the end of 2026, the number of Russian companies unable to service their ruble-denominated debt on time could reach 40–50, the highest level since 2010, said Pavel Zholobov, junior managing director at the NRA rating agency.

The number of bond defaults in 2026 has already reached its highest level in a decade, Zholobov said. Similar figures were recorded in the mid-2010s: in 2014, 35 companies missed payments; in 2015, 52 did so; and in 2016, there were 44 issuers. This occurred in part after Western sanctions were imposed on Russia over its annexation of Crimea and its war in Donbas, as well as amid a halving of oil prices and a sharp weakening of the ruble.

There were more defaults only in 2009. At the time, amid the fallout from the global financial crisis, more than 100 issuers faced payment problems, while the volume of distressed debt reached nearly 200 billion rubles, Zholobov noted.

High interest rates put pressure on companies

This time, the main reason for companies' difficulties in making bond payments has been the prolonged period of high interest rates, which has continued since 2023. Companies are raising financing at high interest rates but are unable to refinance their debt on more favorable terms, explained Ekaterina Sidorova, head of the Foreign Exchange, Commodities and Debt Markets Department at SberCIB Investment Research.

At the same time, the situation does not yet resemble a systemic debt crisis: defaults are primarily being recorded among companies with low credit ratings and high debt burdens, Sidorova said.

If a company fails to repay bond debt, it is given 10 business days to meet its obligations. If it fails to do so, the company may offer investors a restructuring—for example, by postponing payments in exchange for a higher interest rate.

The number of defaults will remain high in 2027, Sidorova believes.

High interest rates were a response to accelerating inflation in Russia. Domestic demand was outpacing production, Russia's Central Bank said in October 2023. Sanctions over the war and rising defense spending had also hit the economy and the ruble, which had lost about 25% against the dollar that year. The bank raised its key rate from 7.5% in the first half of 2023 to 15% by the fall.

Ukraine targets Russia's oil industry to weaken its war economy

Ukraine is also seeking to weaken Russia's economy as part of efforts to reduce its ability to finance the war. In particular, Defense Minister Yevhenii Khmara said strikes on oil refineries are aimed at "bleeding the Russian war machine" and destroying its military and economic potential. According to the ministry, the attacks have knocked out more than 51% of Russia's oil refining capacity.

In the first half of July, Russian oil refineries processed about 3.9 million barrels of oil per day—the lowest level since March 2005. Due to the production cuts, Moscow was also forced to restrict fuel exports.

Ukraine is thinning its state bureaucracy. Central government bodies will cut more than 4,000 vacant positions in the first stage of a civil service reform, Prime Minister Serhii Koretskyi says, with the number of deputy ministers to fall by about 20% and deputy heads of other central bodies by nearly 18%.

The reform aims to build a professional state apparatus that can carry out tasks quickly and effectively, Koretskyi said. It comes as Ukraine faces an economic crunch, and about $20 billion in EU aid is on hold, blocked by reforms Kyiv has not completed.

The cuts are only the visible first step, and the final headcount is not set yet. The number of deputies will be tied to the volume of tasks each office carries, Koretskyi states.

"The most important thing is that we are running a functional diagnostic of the state apparatus," he continues.

The Ukrainian government will assess which functions the bodies have and whether they align with the state's realities and priorities, and only then will it define the structure and final headcount.

Training is tied to the job

Another track reshapes how officials learn. Training will be linked to the tasks of each specific post, with outreach and internships for young people and a separate program for veterans, Koretskyi says.

The Public Administration Council, which brings together officials, members of parliament, and experts, has resumed work, presenting a detailed plan on the task and assigning responsibility for each area.

The squeeze that forces the cuts

The reform lands in a tight budget. The war is costing Ukraine about $155 billion a year, and with Western aid running late, Kyiv has frozen almost everything except the army, pensions, and public wages.

On 1 October, the state suspended a veterans' gym subsidy that had cost about $13 million and drawn more than 800,000 users, for lack of funds.

On August 19, 2026, the United States national debt officially crossed the $40 trillion mark. The number has become so large that it risks becoming meaningless. That is precisely why it matters. Forty trillion dollars is no longer a projection or a warning about the future. It is the Treasury’s current balance-sheet reality. This is […]

ISLAMABAD: The leaders of Pakistan’s Jamaat-e-Islami (JI) on Sunday warned of staging sit-ins in Rawalpindi and Islamabad if authorities refuse to grant permission for a public gathering in the garrison city, as the party escalates pressure on the government over rising fuel prices and inflation. Hafiz Naeemur Rehman, the emir of Jamaat-e-Islami, told a news ... Read more

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