Mobile Internet Restrictions Deepen Business Losses in Russia’s Largest Cities

Businesses across Russia suffered heavier losses during the May holidays than in previous years, despite a smaller number of public holidays in 2026. In Moscow and St. Petersburg, the situation worsened further as restrictions on mobile internet services disrupted commercial activity and slowed recovery.

Mobile Internet Restrictions Added Pressure on Businesses

The first stretch of May holidays caused a relatively moderate decline in business turnover. Total revenues dropped by 6.4% compared to a standard week in April. However, the second holiday period delivered a much steeper падение after the additional public holiday on Monday, May 11. During that week, business turnover fell by 15.3%.

Moscow and St. Petersburg recorded the sharpest losses. Business revenues in the two largest Russian cities declined by 17.2%, while other regions posted a smaller drop of 14.0%.

Analysts believe restrictions affecting mobile internet services likely contributed to the deeper downturn in the country's largest urban markets. The pattern differed sharply from previous years. In both 2024 and 2025, businesses in Moscow and St. Petersburg recovered faster during the second May holiday period than companies operating in regional markets.

IT and Wholesale Trade Sectors Faced the Biggest Losses

Shortened working weeks hit industries that depend on uninterrupted transactions and stable logistics particularly hard. The IT sector experienced one of the steepest declines, with turnover falling by an average of 16.5% during the holiday period.

The trade sector also suffered significant losses, especially in wholesale operations, where companies rely heavily on continuous shipments and active commercial turnover.

The unusual dynamics of the 2026 May holidays highlighted the growing vulnerability of Russian businesses to digital infrastructure disruptions, especially in the country's largest economic centers.