(MOSCOW) – The Russian government is preparing to impose a sharp increase in utility costs on its citizens, with new forecasts indicating that housing and communal service tariffs will rise by 60 percent over the five year period from 2025 to 2029. According to the business paper Vedomosti, the Economic Development Ministry has revised its plans, with tariffs now set to grow twice as fast as expected inflation and eight times faster than GDP.
The impending increases follow the recent parliamentary elections, with one Russian newspaper noting, “The elections are over. The time has come for unpopular measures.” The strain on the system is compounded by significant infrastructure decay, with 42 per cent of linear utility facilities, such as heating and water pipes, requiring replacement. In heating supply systems alone, just under 30 per cent of infrastructure is in need of renewal.
In a separate report, Izvestia describes Russia as having gone on a “hydrocarbon diet,” as expensive oil has failed to shield the federal budget from declining commodity revenues. The Audit Chamber estimates that in 2026, these revenues will amount to 7.3 trillion rubles (approximately $78.5 billion or £62.1 billion), which is 1.6 trillion rubles less than planned.
Further financial pressure is being applied to families through changes to the state mortgage programme, effective from 1st October. The new rules make the process more challenging, though they offer cheaper rates for larger families. A family with one child under seven can borrow up to 6 million rubles (around $64.5 million or £51 million) at a rate of 10 per cent. Those with five or more children can secure a rate of 2 per cent on loans up to 10 million rubles (approximately $107.5 million or £85 million).
Meanwhile, back-channel contacts between the Kremlin and the far-right Alternative for Germany (AfD) party have been reported. The AfD is said to be in contact with Kirill Dmitriev, a special envoy of the Russian dictator Vladimir Putin, about holding a Russia-Germany-US business forum. Marcus Frohnmaier, deputy chief of the AfD’s parliamentary group in the Bundestag, stated that Dmitriev had previously said Russia was ready to organise the event in 2027. The paper also claims there is interest from the United States, with the American Chamber of Commerce in Moscow backing the forum. Its head, Robert Agee, said that for now it is just an idea, but that Amcham is ready to join if the mechanism is launched.
The first session of the new Duma is set for this Wednesday. While the ruling party has even more MPs than in the previous one, Moskovskii Komsomolets notes that in terms of the Duma not being a place for discussion, nothing has changed. What has changed is that around one in 10 MPs fought in Russia’s war on Ukraine.
Today, on World News Day and the International Day for Universal Access to Information, Novaya Gazeta features an opinion piece by David Walmsley of the Globe and Mail, Liz Corbin of the European Broadcasting Union, and Maria Gabriel of UNESCO. They write that in an information vacuum, brave and independent journalism is indispensable, as it investigates, corroborates, and contextualises information, while also countering disinformation. The article notes there is little sign that this is something the Russian authorities want, and that independent journalism in Russia has come under intense pressure in recent years.
