Russians To Increase Housing And Utility Tariffs By 40% In Four Years

There is a price to pay for war.

Russian authorities are preparing to sharply increase tariffs for citizens on gas, electricity and other utilities, according to the government's updated macroeconomic forecast, The Moscow Times reported.According to the document, which was prepared by the Ministry of Economic Development, the total payment for housing and communal services will increase by 11.9% this year, 9.8% in 2026, 7.9% in 2027 and 5.9% in 2028. Compared to the initial plans (5.4% next year and 4.8% in 2027), the indexation rates will almost double, and the cumulative total for 2025-28 will amount to 40.3%. Wholesale gas prices for households, which have already increased by 24% since the beginning of the war, will be increased by another 10.3% this year, by 10.6% next year, and then by 9% and 7% respectively in 2027-28. As a result, the amount in "payments" will increase by 42.2% in four years, and the accumulated increase since the beginning of the war will exceed 76%. This is a payment for the reliability of supply, social gasification and connection of the occupied territories to the unified gas supply system, explains the MED.

Electricity will become more expensive by 38% in 2025-28, follows from the forecast. The maximum indexation - by 12.6% and 9.3% - is planned for the current and next years, and then its rates will decrease to 6.9% and 4.9% respectively in 2027-28. This is a consequence of the increase in gas prices, which will be indexed for all categories of consumers by 3 percentage points above inflation, the Ministry of Economic Development points out. Compared to the original plans, the growth rate of energy tariffs will be higher by 7 percentage points in the next 2 years. Only the indexation of tariffs for passenger rail transportation has not changed: they will rise in price by 11.4% in 2026 and by 5.9% in 2027-2028. The new tariffs will come into force in January, unlike public utilities, which are now indexed from July.

And freight transportation will go up in price from the new year more than expected (10.4% instead of 8.5%). This may not be all: the Ministry of Economic Development promises to adjust the forecast of indexation of tariffs for gas transportation through gas distribution networks.

This indexation of tariffs will inevitably affect prices.

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