The Kremlin has increased consumer taxes and fees to fill state coffers, squeezing small businesses and households.
After two years of robust growth fuelled by military spending on the war in Ukraine, Russia’s economy is slowing. Oil revenues are down, the budget deficit is up and defence spending has levelled off.
The Kremlin needs money to keep its finances steady – and it is clear where President Vladimir Putin intends to get it: at the cash register, from ordinary people and small businesses.
