Overdue loans at Rosneft-linked bank soar 1,716% in one year
Credit Bank of Moscow, which has close ties to Rosneft, has seen a surge in overdue loans, The Moscow Times reported on Aug. 19. As of July, 14.8% of its loan portfolio was past due — five times the Russian banking system average.
The Credit Bank of Moscow, closely tied to Rosneft, has experienced a dramatic increase in overdue loans, according to The Moscow Times on August 19. As of July, 14.8% of its loan portfolio was in arrears, surpassing the Russian banking system's average by fivefold. The bank, one of Russia's top 10 by assets and deemed systemically important, had overdue loans amounting to 277 billion rubles, equivalent to $3.32 billion.
Analysts from InvestFuture highlighted that MKB's balance sheet had significant issues. Its overdue loan balance surged by an astonishing 1,716% within the past year, as revealed by its financial statements. The problems were initially identified last summer, with overdue debt surging nearly elevenfold from August to December, rising from 15 billion to 160 billion rubles ($180 million to $1.9 billion).
An additional 73% increase occurred from January to July, adding another 117 billion rubles ($1.37 billion) to the total, raising the overdue loans to 277 billion rubles. Reports had previously cautioned that Russia's federal budget might face a substantial deficit in 2026 due to lower-than-anticipated oil and gas revenues, a concern the Russian government acknowledged.
Ukrainian intelligence reported that the financial health of medium-sized and large Russian businesses was deteriorating, indicating growing imbalances within the corporate sector. Over half of Russia's large companies reported lower profits in 2025, leading them to cut or freeze investment projects and prepare for potential layoffs.
Other indicators of increasing financial strain included the reduction in corporate investments and preparations for workforce reductions.
Written by urgent.news from New Voice of Ukraine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
