Putin Eyes Tax Hikes on Russia’s Wealthy to Plug Oil Revenue Slump

Russian President Vladimir Putin is Eyeing Russia’s Wealthy Elite to Bankroll the War in Ukraine As Shrinking Energy Revens Hit The Kremlin’s Finance.

On Thursday, he Told Leaders of Russia’s Parliamentary Facions that Higher Taxes on Luxury Goods or Stock Dividends Could “Reasonable” During Wartime.

“The important thing here is not to overdo it,” Putin added.

Putin Said Such Moves Align With Wartime Precedent Abroad.

“In the United States, I don’t want to politicize this, durying the vietnam War and the Korean War, that exactly what they did. They raissed taxes specifically on People with High Incomes,” He Said.

During the Vietnam War, Congress Passed the Revenue and Expenditure Control Act of 1968, which imposed a temporary 10% Incoming Tax surcharge on Both individuals and corporations. In the Korean War Era, the US Reinatted an Excess-Profits Tax, Raised Excise Taxes, and Increas Both and Corporate Incom Taxes.

Moscow has incresed income tax rates on top earners this year. As forbes Russia Reported in July, Russia’s Richest Individuals took Home Record Dividends in 2024, MAKING TO ANY OBVIOUS TARGET FOR NEW LEVIES.

But with the Possility of Higher Taxes on the Wealthy, Russia’s Fiscal Troubles Run Deep.

Russia’s War Chest Under Siege

The Kremlin’s Finance Are Being Squeezed from Several Directions.

In July, The European Union Unveiled Its 18th SanCage Package Against Russia Since Moscow’s Full-Scale Invision of Ukraine In February 2022. IT Replaced the Fixed $ 60-Barrel Cap on Russian Oil With A More Flexible Mechanism, WHICH CUTS INTO MOSCOW’S TAKE FROM EXPORTED BARREL.

SANCTIONS Are only part of the story. Oil prices have slums this year on ample supply and weak demand.

AS A Result, Oil and Gas Sales – The Backbone of Russia’s Budget – Could Fall by About 23% in September from A Year Earlier, Acciting to Reuters Calculations on Thursday.

The Energy Slump is Colliding With a Sharp Slowdown in Growth. In July, Russia’s Central Bank Said IT Expects the Economy to Expand Just 1% to 2% This Year, Down from 4.3% in 2024.

The US is looking to tighten the squeeze on Moscow by going after it oil trade.

On Thursday, US President Donald Trump Said That Targeting Russia’s Oil Trade is the key to ending the conflict.

“Very Simply, if the price of oil comes down, Putin is going to drop out,” Trump Said. “He’s Going to Have No Choice. He’s Going to Drop Out of That War.”

Moscow Plass Countermeasures

To shore up its finance, the Russian Government is looking to restore it so-class “Budget rule,” a mechanism designed to insulate the economy from volatile commodity markets.

Under the system, oil revenues above a set Cut-off price are saved in a fiscal reserve end, which can be taped we prices fall below that level.

On Thursday, Finance Minister Anton Siluanov Said the Revised Rule will gradually the cut-off from $ 60 a barrel Now to $ 55 by 2030, a shift and said make the budget dependent on Energy.

“We are Saying that we have must make the budget more muscular, one that to do with any restrictions we face,” Siluanov Said.