Russia will increase its value-added tax fee to 22%, a sign the Ukraine conflict is dragging on its economic system.
President Vladimir Putin had pledged to not increase taxes earlier than 2030, however spiraling army and safety expenditure — and lowered earnings from oil due to sanctions and Ukrainian drone attacks on refineries — have hit Moscow’s exchequer.
US President Donald Trump mentioned this week that Russia was in “huge monetary hassle,” which Moscow dismissed, however the budget deficit is expected to reach 2.6% for the full year, towards an anticipated shortfall of 0.5%. Financial progress can be slowing, with official forecasts falling from 2.5% to 1% for this yr.
