Russia's economy is facing a "time bomb", as sanctions escalate and interest rates remain high. Businesses around the country are struggling to pay back loans and are fighting to stave off bankruptcy.

Firms have watched on helplessly as interest rates were hiked to 21% towards the end of 2024, before being cut to 16.5% this November. The rate hikes were in response to spiralling inflation, as Russia 's Central Bank struggled to contain a an increase in prices. Many experts predict inflation will grow again, forcing further interest rate rises next year.

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