Sredneuralsk, a satellite city of Yekaterinburg, has officially been declared insolvent. By order of the governor of Sverdlovsk region, external financial management has been imposed.
The trigger was expenditures exceeding revenues by 18 million rubles. Against the backdrop of the oblast’s overall budget deficit of over 30 billion rubles, this amount seems minor, but it has signaled a deeper financial crisis.
Difficulties balancing local budgets have spread across most regions. In Tomsk, officials warned in the summer that external management might be imposed: due to problems resettling unsafe housing, debt reached nearly 2 billion rubles, with a deficit of 5 billion. In Samara, local authorities also received warnings about the risk of losing financial autonomy. In Irkutsk region, spending on teachers’ and medical staff salaries was cut in an attempt to control the deficit.
The situation in the Volga region is no better. Saratov’s budget foresees a deficit of nearly 2 billion rubles, and Ulyanovsk region deputies approved a budget with a 1.3 billion-ruble gap. Local authorities admit that under current sanctions and military spending, this is still an “optimistic scenario.”
Northern regions are facing growing challenges. In Chukotka, residents of several settlements report cold apartments as boiler plants ration coal. Temperatures in some areas have already dropped to –6°C, and fuel reserves cover only a third of the need. The “Northern Supply” system—responsible for delivering fuel, food, and essential goods—was fulfilled at only 56% of the plan in September. As of November 1, only 32% of the necessary coal had been delivered to villages.
Heating shortages are also reported in Yakutia, Magadan region, the Jewish Autonomous Region, and Primorye, where firewood has become too expensive for local residents.
Rising debts, underfunded social services, and breakdowns in communal infrastructure indicate that Russia’s regional economy has lost its foundation. The central government continues to accumulate resources, leaving the periphery on the brink of survival.
