Russia Imposes Drastic Tax Hikes to Fund Ukraine War Effort
Moscow – The Russian government is implementing significant tax increases across multiple sectors as it seeks to bolster funding for its ongoing military operations in Ukraine, according to reports.The move signals a growing strain on the Russian economy and a reliance on increased revenue generation to sustain the protracted conflict.
While official Russian tax revenue is insufficient to cover the escalating costs of the war,the Kremlin is reportedly planning expenditures of approximately $394.6 billion between 2025 and 2027 for military upgrades and budget increases, as reported by DEFENSE EXPRESS in October 2024. To meet these demands, russia is increasingly dependent on revenue generated through oil exports, circumventing international sanctions via a network of “shadow” tankers. A ZDF documentary released in January 2025 estimates that Russia earned roughly €210 million per day in October 2024 alone from crude oil sales via these routes.
These increased revenues are being funneled into the Russian state budget, alongside the new tax measures, to finance the ongoing war effort and maintain military readiness. Sources include Meduza, Defense Express, ZDF, and the Federal Statistical Office. (pm)
