Changes to the law

Ukraine war: Putin is now asking the rich to pay

In an effort to raise additional revenue to finance his war of aggression in Ukraine, which violates international law, Russian ruler Vladimir Putin has signed amendments to the law - they provide for tax increases in the billions.

Since the invasion of Ukraine by Russian troops in February 2022, state expenditure has significantly exceeded income. Not only does Russia have to spend vast sums on its war against neighboring Ukraine, but Western sanctions are also depriving the world's largest country in terms of area of billions in revenue from raw material exports.

In order to pull himself out of his misery, Putin signed a series of amendments to the tax law on Friday. Among other things, they provide for an increase in income tax rates for top earners and corporation tax for companies.

Promoting Russia's "welfare"
According to estimates by the Ministry of Finance, these steps will bring in the equivalent of around 27 billion euros per year. The plans were presented by the Ministry of Finance in May. The amendments to the law were passed by parliament at the beginning of the week. Finance Minister Anton Siluanov explained in May that the changes, which are referred to as "system reforms" in the country, were aimed at creating a "fair and balanced tax system". The additional funds would promote Russia's "economic well-being" and flow into a series of public investment projects.

In the previous year, Russia recorded a budget deficit of the equivalent of around 33 billion euros, which corresponds to around two percent of gross domestic product. A deficit of around 1.1 percent is expected for the current year.