Even key enterprises of the Russian military-industrial complex, which had priority funding and orders from the state, will face a crisis, the Center for Countering Disinformation reports.
Points of attention
- Kronstadt, a leading Russian drone manufacturer, is facing bankruptcy due to the exit of a strategic investor and financial problems, despite having state orders.
- The company has accumulated massive lawsuits totaling over 626 million rubles, indicating severe financial distress and operating with billions in losses for several years.
- The withdrawal of the strategic investor, Sistema, in 2022 deprived Kronstadt of access to capital and exacerbated its financial collapse, highlighting the vulnerability of businesses to external factors.
Russian drone manufacturer Kronstadt is on the verge of bankruptcy
One of the leading players in the market, drone manufacturer Kronstadt, has received more than 40 lawsuits in the past three months totaling more than 626 million rubles (approximately $7.7 million). The company has been operating with billions in losses for several years.
The main reason for the financial collapse was the withdrawal of the strategic investor, Sistema, from the project in 2022, which deprived the company of access to capital. Even before the full-scale war, the company had debts and was a “problem asset.”
Despite the availability of state orders from the Russian Ministry of Defense, it was not possible to improve the financial situation. Additional pressure was created by sanctions and the increase in the cost of components. Today, Kronstadt is left alone with debts and massive lawsuits from suppliers.
This story shows that even getting into the military procurement system no longer guarantees the survival of a business. The Russian economy is so unbalanced by war and sanctions that even strategic industries like drone production are beginning to collapse.
