The Russian Finance Ministry has proposed significant tax increases on corporations and wealthy individuals to address the fiscal deficit caused by the full-scale invasion in Ukraine. This move aims to generate about 2.6 trillion rubles annually to fund the costly war, which has already exceeded $211 billion. The tax changes, expected to come into effect in 2025, will raise approximately $29 billion yearly and impact around 2 million people. Exceptions will be made for soldiers, and families with multiple children will receive refunds. The corporate tax rate will rise from 20% to 25%, contributing an additional $18 billion to the budget in 2025 and $125.3 billion by 2030.
The U.K. Defense Ministry warned in November 2023 that Russia’s economy was at risk of overheating due to increased military spending and other factors. Despite these challenges, Russia’s economy has shown resilience, albeit becoming more reliant on fewer trade partners post-invasion.
US accuses China of ‘every support’ for Russia’s war in Ukraine, threatens more sanctions
The U.S. has accused China of backing Russia in its war in Ukraine, labeling its actions as destabilizing in Europe.
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