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Putin Moves to Militarize Russian Society, ISW Says
The Kremlin is raising taxes, seizing assets and eyeing private pensions as military spending climbs and bond sales falter, officials and analysts said.
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.
Vladimir Putin says that the most important task of all is to support special operations soldiers and families. Still, Russian gas stations are easing restrictions.