News from Russia: War in Ukraine Raises Taxes and Cost of Living for Gazprom | World | New

Gazprom, a majority state-owned company, could see the tax rate on its mining extraction temporarily increase later this year amid the Kremlin’s costly war in Ukraine, according to reports. This would see the company take a bigger drop in revenue between September and November.

The Russian Finance Ministry has suggested that the increase, if it occurs, will be due to rising gas prices.

Journalist and Moscow scholar Ben Aris described the ministry’s public position as that an “additional” tax is needed for Gazprom “because it makes too much money”.

But he added there was probably another reason behind the move.

Mr Aris wrote in a post on Twitter that the country was “going back to the 1990s!”.

He has developped : “[Former President Boris] Yeltsin was doing that in the 90s.

“When the government ran out of money (all the time), the government used to hit Gazprom with special taxes to cover the shortfall.”

Reports suggest that the Kremlin spends around a billion rubles every hour on the war.

This equates to around £15million.

READ MORE: Putin could CUT gas supplies to all of Europe in bitter revenge plot

This equates to over £6 billion.

The monetary cost of the war is said to be one of the reasons why a growing number of Russian officials are dismayed by the ongoing conflict.

Some Kremlin insiders also recently told Bloomberg they were concerned about the long-term impacts of the “special military operation” for Russia, which they said would remain increasingly isolated on the world stage for decades. years, even decades.

They added that they could not entertain such scams directly with Vladimir Putin as they believed there was “no chance” of changing his mind.

Max Seddon of the Financial Times reported that business leaders and officials did “everything possible” to avoid the subject of war at the annual St. Petersburg International Economic Forum last week.

He added in a post on Twitter that when Putin brought up the subject, he only received “lukewarm applause”.

About Leni Loberns

Check Also

The European Commission approves the nationalization of the German subsidiary of Russian Gazprom

The European Commission has approved the nationalization of Gazprom Germania, the German subsidiary of Russian …