“Moscow — High-energy pop music blares out across the atrium of a glitzy shopping mall in a middle-class Moscow suburb. But what was meant as the soundtrack to the hustle and bustle of shoppers is instead playing to largely vacant and boarded-up glass-fronted units – a poignant sign of Russia’s economic malaise. The sprawling Goodzone”, — write on: www.cnn.com
Moscow —
High-energy pop music blares out across the atrium of a glitzy shopping mall in a middle-class Moscow suburb. But what was meant as the soundtrack to the hustle and bustle of shoppers is instead playing to largely vacant and boarded-up glass-fronted units – a poignant sign of Russia’s economic malaise.
The sprawling Goodzone mall flung open its doors in 2014 amid much fanfare. It includes an eight-screen multiplex cinema that now sits deserted, its foyer lights switched off. Though still open seven days a week, the mall in southern Moscow appears to be slowly dying, with few open shops and even fewer customers.
Following its full-scale invasion of Ukraine, the exodus of Western companies and unprecedented Western sanctions, Russia’s economy defied expectations, pivoting to massive military spending and increased oil exports to China and India.
However, the economy is beginning to show signs of creeping strain, with GDP contracting 1.8% in the first two months of 2026. Russian President Vladimir Putin acknowledged the issue in a government meeting on economic affairs in mid-April.
“Statistics show that economic growth has, unfortunately, been slowing for two consecutive months,” Putin said, demanding officials explain “why the trajectory of macroeconomic indicators is currently falling short of expectations.”
The leader of Russia’s Communist Party, Gennady Zyuganov, later criticized what he described as a lack of competent responses to Putin’s questions at the government meeting, calling it “sad and disturbing.”
Speaking in Russia’s State Duma (parliament) last week, Zyuganov warned the country could face a Bolshevik-style revolution if the government fails to address the weakening economy.
While he stopped short of criticizing Putin, as is often the case with the choregraphed opposition permitted by the Kremlin, he did rebuke the government.
“We have repeatedly warned you: with such a course, the economy will inevitably fail,” Zyuganov said.
While there have been no signs of mass social unrest in Russia, and other malls including the giant Aviapark in northwest Moscow appear to be doing good business, several workers at Goodzone described to CNN with concern the increasingly minimal foot traffic there.
One of those was Ivan, a cashier at a branch of one of Russia’s largest retailers, who asked CNN not to use his surname or disclose his workplace. This is his second job, and he can’t afford to lose it in the current climate, he said.
“Well, in terms of the economic situation, does this tell you something about the situation in the country,” Ivan said, pointing to the screen of his cash register.
The monitor shows 13 transactions for the day so far – a paltry total of 3,417 rubles (about $45). It’s a Thursday afternoon in late April, and Ivan says the number of transactions in better times would be closer to 300.
“(Goodzone) looks semi-apocalyptic,” Ivan said. “The mall is so big, you could get lost and tired walking around it. It would seem it was built and designed for a huge flow of people, but I haven’t seen it.”
CNN has reached out to the mall’s administration office for comment. The website for the mall says parts of it are being refurbished, and that it is introducing new operators – neither of which CNN saw evidence of. The website is advertising retail spaces for rent at staggeringly low prices, from as little as 1 ruble (about $0.01) per square meter. Many of the empty stores previously housed Western brands which have moved out.
Two women working in a gift store, who again asked not to be named, told CNN that very few customers walk in anymore.
“We are basically using this store as a warehouse,” one of them said. She added that after the Covid-19 pandemic many companies moved online but business in general bounced back – that was, until Russia’s full-scale invasion of Ukraine in February 2022.
“After 2022, purchasing power decreased,” she said. “We no longer believe that it will get better. We just hope that it doesn’t get worse.”
The second woman nodded in agreement. “That’s the only wish we have, because prices everywhere are going up daily for everything, but salaries are not increasing,” she said.
The women said their boss was struggling to meet increased tax demands. “The owner is running around crazily because taxes have increased this year, and now he has a problem collecting the money to pay. It’s very difficult for entrepreneurs right now,” one said.
To raise more revenue, Russia increased income and corporate tax last year, with value-added tax, or VAT, hiked to 22% from January 1, 2026.
Ruben Enikolopov, a research professor at the Barcelona School of Economics, explains that at the onset of the full-scale invasion of Ukraine, the Kremlin had low government debt and large reserves, and pumped money into the economy via military spending.
“It works for a while but that can’t continue forever. Government expenditure helped the economy but now the boom cycle is over. Reserves are down and they need to find money from somewhere, hence the increased taxes,” Enikolopov said.
Enikolopov said that although Moscow has benefited from high energy prices during the war in the Middle East, Ukrainian attacks on the Russian supply chain – especially the continued targeting of refineries – have reduced the amount of oil Russia can sell.
Last month, Russian Economy Development Minister Maxim Reshetnikov publicly acknowledged that recent tax changes have impacted businesses.
Russia has relied on its reserves, Reshetnikov added, but “now we are seeing that these reserves have been largely exhausted, and the macroeconomic situation is much more complicated.” The main task for the government is to help businesses adapt to the current situation, he said.