u/bochnik_cz

Moscow Credit Bank, which has close ties to Rosneft, has faced a growing wave of loan defaults, according to its financial statements published by banki.ru.

As of July, the bank—which ranks among the top 10 by assets and is designated as systemically important—had 14.8% of all outstanding loans in default, a rate five times higher than the banking system average. In total, customers failed to repay 277 billion rubles to MKB on time.

“MKB has a hole in its balance sheet,” write analysts at InvestFuture. According to the financial statements, the bank’s volume of non-performing loans increased by 1,716% over the past year. The first problems arose last summer: from August through December, the volume of “past-due” loans grew 11-fold—from 15 to 160 billion rubles. From January through July of this year, non-performing loans increased by another 1.7 times (+117 billion rubles).

Founded by billionaire Roman Avdeev, MKB came under the influence of Rosneft in 2017, when it found itself on the brink of bankruptcy along with other banks in the “Moscow Ring”—Otkritie Financial Corporation, Binbank, and Promsvyazbank. Rosneft effectively rescued the bank by injecting funds into its capital and placing long-term deposits maturing in 2066. The company also transferred reverse repo transactions worth hundreds of billions of rubles to MKB, which it used to finance its operations.

It is unclear exactly which entities failed to repay their loans to MKB in 2025. According to the Central Bank, in recent months, companies in the metallurgical and coal industries, as well as the construction and real estate sectors, have experienced debt difficulties—they requested that banks restructure loans they were unable to service.

According to a source for *Kommersant*, MKB’s problems were uncovered last year during a Central Bank audit, following which the bank’s management was replaced. In the summer of 2026, the bank’s majority shareholder also changed, though it is unknown who took over. Credit institutions currently have the right not to disclose the identities of their controlling beneficiaries.

According to the Central Bank of the Russian Federation, as of April 1, only 3.9% of loans issued by banks were “bad”—about 3.5 trillion rubles. However, the share of non-performing loans is three times higher—11.6%—and in monetary terms amounts to 11.2 trillion rubles—equivalent to two annual budgets of Moscow. This amount includes loans for which banks were forced to ease terms because borrowers were unable to keep up with payments.

Potential difficulties with debt servicing are even more likely for loans totaling 36 trillion rubles—which account for three-quarters of the total debt of the largest companies, according to the Central Bank’s assessment. Among the largest companies in critical condition are those in the coal and construction industries, as well as in trade and machine building, the Central Bank noted.

source: The Moscow Times https://archive.is/hxfJo

When you try to erase a sovereign nation but end up stranded on the M-4 highway with an empty tank. Drone strikes are causing massive shortages across the country, and locals are complaining that 'The Hunger Games continue.' Who knew imperialism would be so inconvenient?

Everything is going exactly according to plan! Just a slight, miles-long delay in the morning commute while Ukraine successfully redesigns the Russian oil industry. 11 out of 34 major refineries hit in August alone: guess those holiday road trips to Krasnodar will have to wait.

source: https://bsky.app/profile/antongerashchenko.bsky.social/post/3mtdmpuzaus2f

s "the capital's irritation with government policies" and "a split" within the Russian elite are reaching a breaking point.

Picture shows the level for the last 5 years. They will be having to sell gold reserves to prop it up again. At a certain point they will cease trading to stop collapse, as was done shortly after the 2022 invasion of Ukraine.

https://tradingeconomics.com/russia/stock-market

PSB Bank, which is the support bank of the Russian military-industrial complex, completed the first half of 2026 with a loss. As follows from the bank’s reporting under RAS, in 6 months it lost 50 billion rubles against a profit of 72 billion rubles for the same period a year earlier.

The problems of the bank, which is in the top 5 in Russia in terms of assets and holds more than 1 trillion rubles of individual deposits in its accounts, were caused by non-payments on loans, it follows from its reporting. For the year 6 months, PSB allocated almost 195.7 billion rubles to reserves for possible credit losses - four more than in the same period a year earlier.

Serving the defense industry and being under 100% state control, PSB became the only Russian bank among the top largest that became unprofitable, notes RSHB Asset Management analyst Isa Aliev. Bank He “bears risks due to directed lending with a non-market margin,” explains Aliyev: through PSB, military factories are financed, supplying the army sent to conquer Ukraine.

The scale of the bank's losses on these loans is such that they "eat up" almost its entire interest margin - that is, income from the difference between the cost of loans issued and the rates on accepted deposits. Taking into account expenses on reserves, PSB’s net interest income in the first half of the year fell 10 times - from 168.7 billion rubles to 16.9 billion, as follows from its reporting. In addition, the bank received 22.8 billion rubles in “other losses”, the essence of which is not disclosed.

PSB's losses will be compensated by the budget, Aliyev points out. Since the beginning of 2026, the state has already poured money into the bank’s capital four times, the last time on July 15 - 39.3 billion rubles, before that on June 10 - 3 billion.

According to the Central Bank of the Russian Federation, as of April 1, 3.9% of loans issued by banks were “bad” - about 3.5 trillion rubles. However, the broader non-performing loan rate is three times higher at 11.6%. In monetary terms, the volume of problems on bank balance sheets reached 11.2 trillion rubles - an amount equal to two annual budgets of Moscow. This includes loans for which banks were forced to soften terms because borrowers could not keep up with payments.

Potential difficulties with debt servicing are possible for loans worth 36 trillion rubles - this is three-quarters of the total debt of the largest companies, according to the Central Bank. Some of the largest companies in critical condition are in the coal and construction industries, trade and mechanical engineering, the Central Bank wrote.

source: The Moscow Times https://archive.is/Uif58

Source