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Tax hikes and rising prices

What has changed for Russia is that the initial economic boost caused by surging military spending appears to be over and now the Kremlin has to “keep pushing the burden of the war on the Russian society,” Snegovaya said.

That burden on society has taken the form of a large increase in corporate and income tax rates, as well as a hike in the value-added tax, or VAT, to help fund record levels of military spending. Russian consumers are also grappling with sharp price rises, especially for imported goods.