Up to 25% of light industry businesses in St. Petersburg might shut down or change their purpose this year. Clothing makers saw their sales fall dramatically in early 2025. Between January and February, their turnover dropped almost 2.5 times compared to last year, reaching only 5.2 billion rubles. The amount of goods they shipped decreased by 1.8 times to 3.95 billion rubles.
Experts blame this problem on fewer government defense orders. They also point to high interest rates that make people less likely to invest money. The situation has already caused serious damage to shoe manufacturing across Russia. According to the Union of Light Industry Manufacturers, fifteen shoe factories closed throughout the country during the past year. Seven of these closures happened in St. Petersburg alone. One notable closure was the "First Step" factory that made shoes for children.
Experts blame this problem on fewer government defense orders. They also point to high interest rates that make people less likely to invest money. The situation has already caused serious damage to shoe manufacturing across Russia. According to the Union of Light Industry Manufacturers, fifteen shoe factories closed throughout the country during the past year. Seven of these closures happened in St. Petersburg alone. One notable closure was the "First Step" factory that made shoes for children.
