October 2025 brought changes to the conditions for borrowing and proposals to broaden participation in joint investment. The reduction in the key interest rate, payment holidays for small and medium-sized enterprises, and the proposed reform of investment partnerships address different aspects of the same task: securing finance while keeping obligations manageable.
The cost of borrowing
On 24 October, the Bank of Russia decided to set its key interest rate at 16.5% per annum from 27 October. This gives companies a reason to review their financing cost calculations and compare existing loan terms with the offers available. Bank of Russia decision.
The effect on a particular loan depends on the agreement. With a floating rate, the calculation formula and reset date matter. With a fixed rate, a change in the key rate does not by itself alter the agreed cost of the loan: reducing costs may require negotiation or refinancing.
The assessment should therefore cover not only the new interest rate but also the full terms of switching — fees, security, restrictions on early repayment and additional borrower obligations. A lower rate does not always mean a lower overall financing cost.
Payment holidays for SMEs
Federal Law No. 276-FZ of 31 July 2025 came into force on 1 October. It allows small and medium-sized enterprises and individuals paying tax on professional income to request a grace period of up to six months under credit or loan agreements concluded on or after 1 March 2024. There is no requirement to demonstrate a decline in revenue. Law No. 276-FZ, Bank of Russia announcement of 1 October.
Loan size limits apply: RUB 10 million for the self-employed, RUB 60 million for microenterprises, RUB 400 million for small enterprises and RUB 1 billion for medium-sized enterprises. Repeat requests are subject to a five-year restriction. The other statutory conditions must also be checked, including the position on arrears, the absence of the recovery and insolvency proceedings specified by the Law and, where security is provided by third parties, the requirements for their consent. Conditions for granting a grace period.
A payment holiday provides time; it does not write off the debt. Interest continues to accrue at the contractual rate and may be capitalised. The practical question for a company is whether it will be able to service its obligations once the deferral ends. The decision to apply should be taken alongside a calculation of the future payment schedule and expected receipts.
Proposed expansion of investment partnerships
On 24 October, the Government introduced Bill No. 1050649-8 in the State Duma. The submitted text proposes broadening the parties eligible to participate in an investment partnership to include individuals and individual entrepreneurs, while expressly providing for participation by joint-stock investment funds and the management companies of unit investment funds. Text of the Bill received by the Duma on 24 October.
Conditions are proposed for individuals' participation. In the absence of the education, academic degree or confirmation of knowledge specified in the Bill, the minimum total commitment to contribute is linked to the asset threshold used for recognition as a qualified investor. The proposal therefore does not envisage unrestricted participation by every private investor.
For business owners and organisers of joint projects, the initiative is of interest as a possible expansion of the ways in which capital can be pooled. Introducing a bill does not, however, create a new right to participate. An investment structure must be prepared on the basis of the rules in force, with the proposed opportunities considered separately until their final conditions are determined.
Different solutions for different needs
Reducing borrowing costs, deferring payments and pooling investment capital are not interchangeable. Refinancing requires a comparison of the full cost of obligations; payment holidays require an assessment of the ability to pay after the deferral; joint investment requires agreement on participants' interests and managers' powers.
For businesses, October's agenda provides grounds to revisit their financial plans and available instruments. The choice between them depends on the structure of the particular project — its cash flows, timeframes and allocation of risk between owners, creditors and investors.