The industrial sector of Russia is facing its most severe crisis in decades. According to Rosstat, in November 2025, industrial production in Russia entered a decline. The overall output volume decreased by 0.7% year-on-year, while the manufacturing sector recorded a decline of 1% compared to the same period last year, marking the first drop since February 2023.
This is reported by Finway
Deep Recession in the Non-Resource Sector
Although mineral extraction increased by 0.7%, non-resource sectors are experiencing a serious recession. The most significant decline is observed in food production, where figures fell by 0.8%—the first decrease in 15 years, and the rate of decline is only accelerating. The woodworking industry reduced production volumes by 9.1%, and the chemical sector by 1.7%. Clothing production decreased by 2.4% over 11 months, while furniture production dropped by 7.5%.
Catastrophic Reductions in Specific Industries
Some sectors have experienced a true collapse. Tractor production fell by 61.6%, bulldozers by 53.7%, elevators by 37.2%, and passenger cars by half. The automotive industry has returned to the worst figures of 2022—production here decreased by 34.1%. Even the defense industry is showing disruptions: the output of “finished metal products” (which includes military products) decreased by 1.6% in November. Production of other transport, including tanks and armored personnel carriers, slowed to 6.4% in November after an increase of 41% in October, meaning it has contracted by more than 80%.
Top managers of leading industrial enterprises in Russia indicate that in 2025, product sales reached their lowest levels since 1998. The production plans of factories and plants have been reduced to a minimum not seen in the last 16 years, and the overall industrial optimism index has fallen to its lowest level since 2009.
In turn, top managers of the largest industrial companies in Russia reported that the sales situation for their products this year has been the worst since 1998.