Russia plans sweeping tax hikes on miners, investors and businesses to bankroll its failing Ukraine war

From the Newshound archive · first published 25 September 2026.

Russia's Finance Ministry has proposed a sweeping new tax package spanning 2027 to 2029, naming defence and security the budget's "strategic priority" as the country's economic outlook deteriorates sharply. A 20% windfall levy on gold producers and a 30% levy on certain miners and fertiliser manufacturers will be introduced alongside higher taxes on passive income — covering investments, property sales and deposit interest — affecting an estimated 4 million Russians. Industrial output is forecast to contract by 0.2% this year, the first such decline since 2020, while fixed investment could fall by 5.4%, the steepest drop since the 2015 economic crisis.

The 2027 budget deficit is already projected at 2.2% of GDP, nearly double the prior three-year target of 1.2%.

Military spending in the first half of 2026 reached 10.687 trillion roubles ($125.7bn), up 30% year on year.

The tax plans were released days after Putin's United Russia party swept Russia's parliamentary 'elections', handing it 355 of 450 Duma seats.