The economic consequences of the offensive war in Ukraine do not stop with the aggressor. Although Russia has huge reserves of natural gas and oil, electricity and gas prices there are now becoming significantly more expensive – although nowhere near the same level as in more Western countries.
Russian authorities are fueling inflation significantly by raising state-regulated utility rates. According to media reports, gas prices rose by 8.5 percent on Thursday and electricity prices by 9 percent. The water and heat supply are also becoming more expensive. It is already the second rate increase in the current year.
costs borne by the consumer
The government usually raises prices in July. This year, the additional costs increased by four percent. At the beginning of the autumn, however, the Ministry of Economic Affairs announced that the rates would be increased again in December due to repairs to the gas and heating pipes. The aim is to pass the costs on to the consumer.
Russian inflation in double digits
Russian citizens have been battling double-digit inflation since the beginning of the war. While the ruble has since become more expensive against major currencies, in particular the euro and the dollar, technical equipment and other imported goods have become more expensive.
The hopes expressed by some economists that gas would become cheaper on the domestic market after the reduction in raw material exports were also not fulfilled. According to surveys, the salary of 43 percent of the population will not come out until the end of the month.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
