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A customer buys bread at the Mashenka bakery outside Moscow, Russia, on Wednesday, Feb. 18, 2026.

Video. How the Ukraine war is impacting Russia’s small businesses

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Rising VAT and tax reforms are hitting Russia’s small businesses hard. Beauty salons in St. Petersburg and Moscow’s Mashenka bakery face closure as costs soar, demand drops, and owners struggle to stay afloat amid stricter regulations and economic pressures from four years of war.

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