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A crisis has broken out in Putin's Russia. Its vast territory is its greatest curse

— One of the burning issues is the upcoming increase in VAT – by two percentage points, from 20 to 22 – says Gurkow. The increase is scheduled to take effect in January, right in the middle of the recession. Consequently, as the expert claims, “it will only deepen the crisis“.

The war costs billions, so now consumers must pay for it. – The increase in VAT means that every final consumer pays this tax – every time he visits a supermarket – explains Gurkow. “This increases prices and fuels inflation“.

Inflation is already around nine percent – with an interest rate of 17 percent. “You can't take out loans at this interest rate,” Gurkov says. In this way, Russia falls into a spiral of economic decay. The consequences of the Kremlin's actions are a lack of investment and economic stagnation – and this is only the beginning of the path Putin has embarked on.

Ashley Davis

I’m Ashley Davis as an editor, I’m committed to upholding the highest standards of integrity and accuracy in every piece we publish. My work is driven by curiosity, a passion for truth, and a belief that journalism plays a crucial role in shaping public discourse. I strive to tell stories that not only inform but also inspire action and conversation.

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