Russia is on the verge of losing 130 small towns with a total population of 3.4 million people, due to collapsing industries, poor infrastructure, and insufficient investments, warned former Ukrainian banker Kyrylo Shevchenko, reported Express. He added that some residents of these settlements are relocating to the occupied parts of Ukraine.

In a social media post, Shevchenko pointed out that over the past decade, these towns have lost 314,000 people. The state response has been limited to allocating 50 million dollars and offering “voluntary relocation.” He further noted that he received information about people moving from remote regions of Russia to the occupied territories in Ukraine, which he considers an important fact.

In another post published on August 11, Shevchenko stated that within six months, 141,000 companies in Russia have disappeared—more than the number of new registrations, marking the first such case since 2022. He commented on the results of a study commissioned by the Kremlin and conducted by the Russian Presidential Academy of National Economy and Public Administration (RANEPA). According to him, 129 small towns with a population of 3.4 million are at risk of disappearing.

The lack of jobs is among the main reasons for the declining population, with provincial towns being particularly affected by the mobilization measures for Russia’s war in Ukraine. In July, a minister from the Russian Energy Ministry warned that more than a quarter of coal companies face closure due to the sector’s crisis—debts, weak demand, and low prices, reported The Moscow Times.

Meanwhile, the United States imposed an additional 25% tariff on Russian oil imports to India, while the largest importer—China—remains unaffected for now. Nonetheless, these tariffs further burden the Russian economy, which heavily depends on fossil fuel exports.

Donald Trump raised the topic of possible normalization of trade relations between the U.S. and Russia ahead of his planned meeting with Russian President Vladimir Putin. |BGNES