![]() The Russian leader has meanwhile vowed “no limitations” on military spending for the war, with social programmes remaining the biggest single budget item. Spokespeople for the Russian government and the finance ministry didn’t immediately respond to a request for comment during a holiday period in the country. No decision has yet been taken on the size of dividends or the one-time levy, they said, as the amount will depend on how the budget fared in the full 2022 year.Īuthorities will try to set dividends above 50% of net income for state companies whenever possible, they said. Some of the additional money is necessary to cover costs related to the war, according to people with knowledge of the matter. Dividends and a windfall tax paid by Gazprom already helped swell a fiscal surplus late last year, before heavy spending commitments in December likely sent the budget into the red. Russia’s budget is increasingly squeezed as President Vladimir Putin’s invasion heads for its second year and the economy contracts under sweeping US and European sanctions. The document, a copy of which was seen by Bloomberg, calls the effort part of “revenue mobilisation.” It also orders 175-billion rubles ($2.4bn) in extra spending to resettle 100,000 people from Kherson to Russia, an apparent admission that the Kremlin has little hope of retaking the Ukrainian region that its forces abandoned in the fall just weeks after illegally annexing it. Proposals include higher dividends from state companies and a “one-time payment” by fertiliser and coal producers, under instructions issued to officials by Prime Minister Mikhail Mishustin in mid-December. Russia is planning to wrest more money from some commodity producers and state companies and trim non-defence spending, according to a government order, as the costs of the invasion of Ukraine mount.
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