Yekaterinburg entrepreneurs are closing their businesses en masse.

      In Yekaterinburg, entrepreneurs are massively closing their businesses due to a significant drop in demand, rising costs, and increased taxes.

      For instance, Andrey Kiselev closed his workshop for the production of souvenirs and handmade jewelry in mid-March. According to him, consumers are now saving on everything that is not related to essential goods. The business was operating at a break-even level, but there are no prospects for growth left, reports the EAN publication.

      Another entrepreneur decided to close his business selling paint products and building materials after 15 years of operation.

      — Everyone says that construction and everything related to it is a gold mine. But that’s not true. Now, much fewer apartments are being built and bought than a year ago, and even more so 2-3 years ago. Buyers have become poorer, the businessman noted.

      The EAN publication also spoke with an entrepreneur who owns an auto service that is closing due to increased taxes. After the threshold for VAT payment was lowered from 60 to 10 million rubles, the business ceased to be profitable.

      — With current expenses and taxes, it has become pointless to operate, he believes.

      The media reports that the situation reflects a broader trend in the economy. According to the Center for Strategic Developments (CSD), the share of companies that do not have funds for development increased from 57% to 75% in a month. Businesses are refusing investments and prefer to place funds in deposits. Thus, businesses are transitioning to a mode of saving and "survival."

      Earlier, information emerged that more companies closed than in the Sverdlovsk region, only in both capitals in 2025. And at the end of January, entrepreneurs had already begun to complain about the incredible increase in tax burden.