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Russia Raises VAT Amid Economic Struggles and Sanctions

9/27/2025

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Left

Moscow Faces Economic Strain

Moscow raises VAT from 20% to 22% to cover a 4.9 trillion ruble deficit; GDP growth for 2024-25 is under 1%.
Russia redirected energy exports to India and China to adapt to sanctions.
Military spending has surged, but experts warn it is unsustainable.
Diesel shortages threaten the economy and military; Ukrainian drone strikes on oil infrastructure intensify Moscow's concerns.

Right

Kallas Urges Global Pressure

Kaja Kallas, the EU’s foreign policy chief, urges global pressure on Russia, saying Ukraine’s aims remain unchanged.
Donald Trump calls Russia a "paper tiger" and says Ukraine should reclaim territory with EU support.
Sergei Lavrov accuses NATO and the EU of waging war through Ukraine.
NATO Secretary-General Mark Rutte highlights alliance unity against Russian aggression.

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Moscow Faces Economic Strain

Moscow raises VAT from 20% to 22% to cover a 4.9 trillion ruble deficit; GDP growth for 2024-25 is under 1%.
Russia redirected energy exports to India and China to adapt to sanctions.
Military spending has surged, but experts warn it is unsustainable.
Diesel shortages threaten the economy and military; Ukrainian drone strikes on oil infrastructure intensify Moscow's concerns.

1 / 2