The Union of Shopping Centres has sounded the alarm, indicating that up to 200 malls are teetering on the edge of bankruptcy and could shutter by 2025.
“Now shopping malls have problems closing existing loan agreements and new loans are completely unavailable to them,” explained Oleg Voitsekhovsky, managing director of the Russian Council of Shopping Centres (STC).
He added that this issue is causing issues not only with profitability but also with maintaining facilities properly and updating their concepts.
Adding insult to injury, these centers are also contending with a tax load that has surged tenfold in recent times.
“For two years now, shopping centres have had their cadastral value increased, and therefore, their property tax – from two to 10 times,” said Pavel Lyulin, the vice-president of STC.
He further predicted that the property tax rate is set to climb even more throughout this year.
Various other sectors are also grappling with the looming threat of widespread bankruptcies as they strive to stay solvent amidst the tough economic conditions.
Coal companies, battered by international sanctions and dwindling exports, have accumulated losses amounting to 80 billion rubles (£650 million).
In addition, around 30 airlines and numerous IT firms are reportedly on the brink of insolvency.
Businesses are finding it progressively harder to secure crucial funding to keep their operations running, as new loans saw a drastic drop of 30-50% in November and December.
Raising capital through the debt market has also become increasingly difficult due to rising bond yields.