The Mashenka bakery, owned by Denis Maksimov, in the suburbs of Moscow, on February 18, 2026. ALEXANDER ZEMLIANICHENKO/AP
A devoted family man and a well-known baker in an outer suburb of Moscow, Denis Maksimov has come to embody the troubles that, after four years of war with Ukraine, have begun to affect the Russian economy. Over the past two months, Russian social media platforms have been flooded with the hashtag #WeAreMashenka, referring to Maksimov's bakery. Overwhelmed by new taxes and strict administrative requirements, the baker has struggled with rising prices and high interest rates, and even came close to bankruptcy.
On December 19, 2025, Maksimov, with his round face and graying beard, spoke directly to President Vladimir Putin, and thousands of Russian entrepreneurs saw their own struggles in the 48-year-old baker's story. That day, during the president's annual "Direct Line" event, a press conference featuring a long monologue and a Q&A session with handpicked journalists and citizens, Putin seemed to discover, for the first time, that Russia's small businesses were struggling under tax burdens.
To address the country's rising budget deficit, which is expected to exceed 3.5%, or even 4.4%, of its gross domestic product in 2026, Russia's government has been forced to pass new measures. It must notably fund its defense budget, which was up 30% over 2025-2027, and now devours 40% of all public spending. Meanwhile, revenue from oil and gas sales, the traditional backbone of the Russian economy, has collapsed due to falling global prices and sanctions, which have forced Russia to sell its resources at a discount. The government is therefore seeking other sources of income.
