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.

The Port of Savannah handled a record 504,015 twenty-foot equivalent units in September, up 3.7% from a year earlier as strong imports and a later-than-usual peak season boosted volumes.

Ukrainian drugmakers could lose the certificates that let them sell in Uzbekistan, their most important export market, Ukrainian business outlet Ekonomichna Pravda reported on 7 October. Uzbekistan is ending remote factory inspections next year, and industry sources say its inspectors are wary of traveling to a country at war.

Russia's war keeps reshaping Central Asia's trade with both warring countries: Ukrainian refinery strikes pushed Russian fuel shortages into the region, and Kazakhstan gained leverage over a Russian retail giant.

A market worth a third of export earnings

Uzbekistan brings in about 30% of the Ukrainian drug industry's foreign-currency earnings, and one in 10 medicine packs sold there is Ukrainian, Ekonomichna Pravda wrote. By the outlet's count, at least three of Ukraine's five biggest drugmakers by revenue rank it as their top foreign market.

The currency from Uzbekistan lets manufacturers keep prices low in Ukraine and absorb losses from Russian strikes, three industry sources told Ekonomichna Pravda. Losing the market would force producers to raise domestic prices or pull low-margin medicines, which "will hit the Ukrainian patient," said Hennadii Vovk, former deputy head of Ukraine's State Service on Medicines and Drug Control.

Exports reached $114 million in January–June 2026, more than in all of 2021, said Yevheniia Piddubna, government relations head at Farmak, Ukraine's largest drugmaker. She said Uzbekistan takes 35% of Farmak's exports.

Data from the YouControl business registry, cited by the outlet, complicates that picture. In 2022, 30–35% of Farmak's products went to Uzbekistan. In 2025, Uzbekistan was not among its direct buyers. Farmak explained that wartime currency rules cap payment terms at 180 days, while foreign buyers often demand longer. So part of its trade runs through the group's Polish company.

Remote checks end, and inspectors hesitate to travel

Uzbekistan grants three-year certificates of good manufacturing practice (GMP) after inspecting the factory. Since the pandemic, it has allowed remote checks. That suited Ukraine, where Uzbek experts avoided traveling because of Russia's invasion, industry sources told the outlet. Remote inspections end on 1 January 2027.

Most Ukrainian certificates expire within a year. Farmak's runs out in November 2026, and the company may not manage to renew it in time. Three producers renewed under the old rules until 2029: Darnytsia, the Borshchahivskyi Chemical and Pharmaceutical Plant, and Farmex Group. According to Piddubna, Uzbekistan's regulator has drafted rules for remote inspections in force-majeure cases, but nothing has been put into practice. Industry sources said the Uzbek Presidential Administration must sign off.

Producers have asked the Office of the President, the Foreign Ministry, and the Health Ministry to raise the issue with Uzbekistan's government, but no Ukrainian experts have been sent there yet, the outlet reported. Russia, whose share of the Uzbek drug market is almost the same as Ukraine's, is ready to take Ukraine's place, its sources said.

The Middle East has seen many explosions of violence in recent years. But while the US-Iran war has grabbed the headlines this year, the rapidly escalating conflict between the Houthis and Yemen’s internationally recognized government and Saudi Arabia risks becoming just as consequential for the region. The complexity of Yemen’s internal conflict cannot be underestimated. […]

The post How Yemen’s renewed civil war could set the whole region ablaze appeared first on Asia Times.

Just hours before Lionel Messi played his last match for Argentina, Cristiano Ronaldo posted his latest salvo in a row with Portugal. Ronaldo wants to play on despite the troubles, while Messi bathed in adulation.

from Glenn Diesen: TRUTH LIVES on at https://sgtreport.tv/