Russia proposed on Thursday raising the tax on dividends deposited in accounts designated for investors from countries it describes as “unfriendly” from 15% to 35%, while also imposing taxes on windfall profits of gold and metal producers and raising taxes on some forms of personal income, as part of efforts to narrow the state budget deficit.
Taxes on windfall profits
Payments owed to foreign investors are held in designated accounts known as “C” accounts and cannot be transferred out of Russia without special permission.
The government is proposing a 20% tax on windfall profits of gold producers in Russia and a 30% tax on metal producers, as well as higher taxes on personal income from deposit interest and share sales. The measures remain part of the draft budget and have not yet taken effect.
Expected deficit in the 2027 budget
Russia’s Finance Ministry said defence, security and support for military personnel were priorities in the draft budget. The government expects a deficit equivalent to 2.2% of gross domestic product in 2027, with spending of 48.8 trillion Russian rubles (about $578.2 billion), against revenue of about 43.3 trillion Russian rubles (roughly $513.1 billion).
Data from Russia’s Finance Ministry showed that the budget deficit reached about 5.8 trillion Russian rubles ($68.7 billion) in the first eight months of 2026, equivalent to 2.5% of gross domestic product. Over the same period, oil and gas revenues fell 16.7% year on year, while spending rose 14.7%.
Spending and energy revenues
Russia’s budget is under pressure from continued spending related to the war that began in February 2022 and declining energy revenues. Authorities raised the value-added tax from 20% to 22% at the start of 2026 and lowered the threshold at which some small companies begin paying the tax, according to Russia’s tax service.
Russian affairs researcher Janis Kluge estimated that the new measures would generate revenue equivalent to about half a percentage point of gross domestic product. This could ease pressure from the budget deficit without fully covering it if spending continues to exceed revenue.
