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Story perspectives

Russia raises VAT to 22% as war stalls, revenue falls

7/3/2026

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Story summary
  • Russia raised its VAT from 20 % to 22 % in July 2026 to offset a budget gap, prompting public discontent.
  • Oil and gas receipts fell to 23 % of the 2025 federal budget—the lowest share in two decades—while Russian forces advanced only 50–90 meters per day in 2026, among the slowest in a century.
  • Russia lost 116 sq km of Ukrainian territory in April, the first reduction of its holdings since August 2024.