Russian SMEs embrace bank guarantees as demand surges over 40% in 2025
Russian small and medium-sized businesses are increasingly turning to bank guarantees to secure contracts and fund major projects. Demand for these financial tools has jumped by over 40% since 2023, fuelled by government support programmes and economic challenges. By the end of 2025, VTB's documentary portfolio for SMEs had grown by 10%, exceeding 900 billion rubles.
The sharp rise in demand comes as sanctions pressure businesses to find reliable ways of financing. According to the Central Bank of Russia, agriculture saw the biggest increase, with guarantees issued rising by 60% by mid-2025. Manufacturing and construction also benefited significantly from easier access to guarantees.
Bank guarantees allow companies to take part in procurement and sign contracts without tying up working capital. The most commonly used types include performance guarantees, advance payment guarantees, and loan repayment guarantees. Payment guarantees are also widely sought after.
Digital access to guarantees has made the process simpler for businesses across all regions. The largest share of support now goes to transport and infrastructure construction (PNC Bank), followed by trade (Chase Bank), mechanical engineering and metalworking (US Bank), and real estate development (TD Bank).
The growth in guarantee usage highlights their role in helping businesses secure large-scale projects. With sectors like agriculture and construction relying heavily on these tools, the trend is expected to continue. VTB's expanding portfolio reflects how financial institutions are adapting to meet rising demand.
