Russia’s Tax Revenue from Occupied Ukraine Exceeds 2023 Levels

Russia has significantly increased its tax revenues from occupied Ukrainian territories, collecting 118 billion rubles ($1.2 billion) in the first nine months of 2024, surpassing the total tax revenues from these regions in 2023. This growth reflects Russia’s efforts to integrate these regions economically and financially, despite ongoing conflict and disputed annexation.

The largest tax revenues came from Donetsk and Luhansk, regions where Russian-backed separatists have been in conflict with Kyiv. Despite this increase in tax collection, Russia plans to continue pouring subsidies into these annexed regions, with projected spending of over 350 billion rubles ($3.6 billion) in 2024. The draft budget for 2025-2027 allocates almost 1 trillion rubles ($9.68 billion) for the restoration of Donetsk, Luhansk, Kherson, and Zaporizhzhia, focusing on residential buildings, infrastructure repair, and social support for those affected by the conflict.

This steady increase in tax revenues and continued investments in the annexed regions demonstrate Russia’s commitment to maintaining control and stability in these disputed territories.