Russia's VAT Hike, Drone Shelters Mark Four Years of War
Get the Geopolitics newsletter
Daily geopolitics — wars, elections, sanctions, the diplomatic moves that move markets. Free.
- The full-scale invasion launched on 24 February 2022 has now outlasted Nazi Germany's war on the Soviet Union, and a nine-storey apartment block in Yelets (350km south of Moscow) bears a mural of five local soldiers killed in Ukraine with the slogan "Glory to the heroes of Russia!"
- Russia's government raised VAT from 20% to 22% to fund "defence and security" as the budget deficit grows and the economy stagnates, with state TV anchor Dmitry Kiselev telling viewers "we live in a time of war" and "can't get by without a war budget."
- Ukrainian drone attacks on Russia's Lipetsk region prompted authorities to install concrete emergency shelters at bus stops, parks, and apartment block basements — infrastructure that did not exist before the full-scale invasion, with sirens going off "almost every night."
- Russian recruitment billboards in Yelets offer a one-off payment equivalent to £15,000 for those willing to sign up to fight in Ukraine, while a local pancake café brands itself with the "V" and "Z" symbols of the "special military operation" and the slogan "Grab a pancake, then the whole world."
- President Vladimir Putin declared in St Petersburg last year: "Where the foot of a Russian soldier steps, that's ours" — and a Moscow billboard displayed his claim that "Russia's borders do not end anywhere."
- Russian civilians in Yelets report being squeezed by utility bills, tax hikes, and ingredient costs, but largely don't blame the war — bakery owner Anastasiya Bykova said rising costs forced her to raise prices, while pensioner Ivan Pavlovich called the "special operation is excellent" even as he railed about his leaking pipe and stagnant pension.
- Russia's authorities do not release casualty figures for the "special military operation," but the reporter notes that nearly every town and village visited in two years has dedicated museums, monuments, and cemetery sections for soldiers killed in Ukraine.
Why it matters: The VAT increase from 20% to 22% directly hits Russian consumers and small businesses — bakeries in Yelets report ingredient costs surging and prices being forced up, squeezing household budgets. With no public casualty data and the war now longer than the Great Patriotic War, ordinary Russians are absorbing the costs without complaint.
Ask SkimNews
