russia officially announced plans to increase VAT
ministry of finance of russia has prepared bills to increase VAT from 20% to 22% starting January 1, 2026. The ministry stated that the purpose of the increase is “financing defense and security,” meaning additional budget funds will go to the war against Ukraine.
Huge war expenditures, sanctions, and falling oil and gas revenues continue to drain russia’s budget. This year, a record deficit of 14 trillion rubles (over $160 billion) has been recorded and continues to grow.
▫️ Despite putin’s statements about readiness for negotiations, the kremlin actually plans to continue the war, and the funding gap will be covered by ordinary russians. Previously, the russian government had already raised income and personal taxes for this purpose.
These actions by the russian authorities once again show that putin will fight as long as he can find money for the war, even at the cost of lowering russians’ living standards. The only way to stop the war is to deprive putin of all means to finance it.
