- Russian President Vladimir Putin is moving to extract more taxes as the country's wartime economy falters.
- Consumers and tech face higher levies as the Kremlin hunts for revenue.
- Sanctions and weak oil prices continue to pressure Russia's war chest.
Russian President Vladimir Putin has ordered a "significant increase" in tax collection and compliance this year as Russia's wartime economy continues to lose momentum.
The Kremlin announced the directive on Saturday following an early December meeting of the Council for Strategic Development and National Projects.
A share of that increase is set to come from higher consumption taxes, which rose from 20% to 22% on January 1. This bump is expected to generate about 1 trillion rubles, or $12.3 billion, in tax revenues.
Russia is also planning to introduce a new tax on electronics in September.
The push for more aggressive tax collection comes as Russia's growth has slowed to a near standstill nearly four years after its full-scale invasion of Ukraine.
While Russia's sanctions-hit wartime economy appeared resilient in the first years of the war, cracks are emerging as persistently low oil prices are taking a toll.
In November, GDP expanded by just 0.1% from a year ago, according to official data. Industrial output declined 0.7%.
In the third quarter, Russia's GDP grew 0.6% from a year ago — sharply lower than the 1.1% in the second quarter and 1.4% in the first.
Putin has also ordered officials to restore economic growth and investment activity, while addressing structural problems across key sectors of the economy.
At the same time, the government is expected to keep inflation in check, with the target rate by the end of 2026 set within the central bank's forecast range of 4% to 5% — down from below 6% expected in 2025 and 9.5% in 2024.
Oil price pressure
Oil prices fell 20% in 2025 due to ample supply and slowing demand growth.
Developments in the global oil market could add to that pressure. The US raid on Venezuela over the weekend is set to change the calculus for energy markets.
"Big Short" investor Michael Burry wrote on Monday that Russian oil "just became less important" in the mid- to long-term. He said tapping Venezuelan oil could strengthen the US and "reduce Russia's income and power."
That view was echoed by John E. Herbst, the senior director of the Atlantic Council's Eurasia Center and a former US ambassador to Ukraine, who pointed to President Donald Trump's plans for Venezuelan oil.
"Trump has said he intends to put Venezuelan oil — still under tough sanctions — back on the market," wrote Herbst on Monday.
"While this may take some time, it will help him reach his goal of driving down oil prices for US (and therefore global) consumers. This will be another big hit to the Russian economy," he added.
Venezuela holds some of the world's largest oil reserves. But analysts say reviving the country's oil industry could take years due to aging infrastructure, decades of under-investment, sanctions, and political instability.
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