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Putin Moves to Militarize Russian Society, ISW Says
Moscow is raising taxes, seizing assets and weighing a $40 billion pension transfer as military spending and deficits keep climbing.
In June, the Russian Finance Ministry announced support for draft legislation to transfer nearly $40 billion in private pension savings into a state-managed fund to cover war-driven fiscal shortfalls.
The Finance Ministry canceled three of four bond auctions in June and July due to lack of buyer interest, forcing an indefinite suspension as the Kremlin sought alternative funding sources.
Prosecutors filed claims to seize assets worth roughly $60 billion between early 2022 and late 2025, while state extraction from firms like Gazprom left little remaining to tap.
Moscow's orders to shoulder more social expenses left 73 out of 89 regions with budget deficits in 2025, up from 49 in 2024, straining local capacity to fund military bonuses.
While publicly claiming to protect the social contract, the government has penciled in a 27.9 percent rise in utility rates for 2026-28, shifting war costs onto household balance sheets.
Europe has blocked hundreds of billions of euros belonging to Russia, but this money does not simply remain "sleep". Preserved in large part at Euroclear, it generates profits, finances aid to Ukraine and now exposes the Belgian institution to a counter-offensive judicial of Moscow.