Are Russians footing the bill for the war in Ukraine?
Counting the Cost
Is Russia’s economy at risk as oil revenues shrink?
Russia plans to raise tax to fund its defence budget as oil revenues decline.
Despite Western sanctions, Russia’s military spending has fuelled its war economy. Three years into the war in Ukraine, growth is stalling, energy revenues are plunging, and the budget deficit is widening.
To shore up state coffers, Russia is raising the value-added tax from 20 percent to 22 percent, among other measures. The Ministry of Finance says funds will mainly cover defence and security spending.
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