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A Wave of Bankruptcies Is Coming to Add to Putin’s Economic Pain

  • About a third of companies said they are at risk of failing
  • Moratorium on bankruptcies could create ‘domino effect’
A television screen displays Russia’s President Vladimir Putin delivering a national address, at a cafe in Moscow, Russia, on March 25. 

A television screen displays Russia’s President Vladimir Putin delivering a national address, at a cafe in Moscow, Russia, on March 25. 

Photographer: Andrey Rudakov/Bloomberg

Russia’s $1.6 trillion economy is going to be dealt another blow when a moratorium is lifted on companies filing for bankruptcy.

The measure, which was a condition of government pandemic support, helped protect healthy businesses from creditors but left those that won’t survive limping along as zombies. It expires in October.