Story perspectives

Russia hikes VAT, Ukraine strikes cut refining, crypto ban.

5/19/2026

Summary

Story summary

Russia raised the value-added tax in January 2026, boosting the shadow economy and raising consumer prices.
Ukraine’s long-range strikes cut Russian oil refining by at least 10% in 2026, shrinking export capacity.
Unmet AI-95 gasoline demand exceeds 26,000 tons, priced near 72,000 rubles per ton and 10% higher on the OTC market.
Government banned cryptocurrency mining in Kursk Oblast after Ukrainian attacks damaged the power grid and deepened energy shortages.

History

Historical Context

After years of fiscal deficits, a costly Chechen war and the 1997 Asian crisis, Russia’s fixed-rate ruble collapsed on 17 August 1998; Finance Minister Sergei Kiriyenko raised GKO rates to 150% and the IMF approved a $22.6 billion rescue, prompting a devaluation to over 21 rubles per dollar. The 2026 VAT hike and Ukrainian refinery attacks have again lifted inflation, cutting fuel output by more than 10%.

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Story summary

Russia raised the value-added tax in January 2026, boosting the shadow economy and raising consumer prices.
Ukraine’s long-range strikes cut Russian oil refining by at least 10% in 2026, shrinking export capacity.
Unmet AI-95 gasoline demand exceeds 26,000 tons, priced near 72,000 rubles per ton and 10% higher on the OTC market.
Government banned cryptocurrency mining in Kursk Oblast after Ukrainian attacks damaged the power grid and deepened energy shortages.

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