{{dayPoint.date | date : 'd MMMM yyyy'}}

{{newsPoint.title}}

{{newsPoint.title+ ' '}}

{{newsPoint.subtitle}}

RUSSIA'S ECONOMY

Value-added tax to rise from 18% to 20% in Russia

Experts believe that the VAT rate hike to 20% will hinder Russia’s economic growth in 2019

© Maxim Grigoriev/TASS

MOSCOW, December 29. /TASS/. The value-added tax (VAT) rate in Russia will amount to 20% starting from January 1, 2019. Russian President Vladimir Putin signed a law in the autumn of 2018, stipulating an increase of the VAT rate from 18% to 20%, as well as new tariffs for social contributions.

Read also

Putin expands on Russia's economic structure

According to the Russian Finance Ministry’s calculations, the move will boost budget revenues by 620 bln rubles ($8.9 bln) per annum. Legal entities pay the value-added tax in Russia at all stages of production and sale of goods or services. The amount of paid tax is set in the final price of products or services, meaning that it is actually paid by end consumers. The previous VAT rate of 18% was in effect from January 1, 2004.

Russian Prime Minister Dmitry Medvedev believes that the decision on VAT hike to 20% is the least painful solution for people and the economy compared with other options to raise budget revenues considered by the government.

The cabinet has pledged to allocate the funds from the VAT hike for social needs, particularly the healthcare sector. It also decided to keep all VAT benefits for main socially important products and services. The beneficial VAT rate of 10% remains for essential foods (bread, milk, etc.), goods for children and medical products.

Experts believe that the VAT rate hike to 20% will hinder Russia’s economic growth in 2019. According to First Deputy Prime Minister, Finance Minister Anton Siluanov, the move can speed up inflation from expected 3% to 4-4.5%.

Serbia’s policy enables country to remain strategic partner of Russia — minister

The Russian economy is ready to such cooperation and remains resilient to external challenges, Maxim Reshetnikov noted

US Senate refuses to block arms supplies to Israel

More than 60 out of 100 senators voted against the three corresponding resolutions, while 17 legislators supported them

Russian forces gain foothold in central Chasov Yar in DPR — expert

While Ukrainian commanders have been making every effort to stabilize the situation in Chasov Yar, Kiev does not have enough soldiers, weapons or military hardware for that, Andrey Marochko said

Press review: Russian air defenses can down Western missiles as EU conducts live exercise

Top stories from the Russian press on Tuesday, November 19th

US journalist calls US President Joe Biden’s government 'the fascist state'

Earlier, Tucker Carlson said that Joe Biden's approval of long-range missile strikes by the Ukrainian army deep inside Russia could threaten US people

Ukraine, not Russia, posing a threat to the Baltic region — Kremlin

Two underwater cables were damaged in the Baltic Sea on November 17 and 18

Newly arrived Ukrainian soldiers rob, loot in Kharkov Region’s Kupyansk

According to Lisnyak, local residents report that Ukrainian military personnel are stealing furniture, transformers, construction materials and humanitarian aid remaining in the settlements, and then selling it to private business owners

US uses veto right to block new UN Security Council draft resolution on ceasefire in Gaza

The resolution was drafted by ten non-permanent members of the Security Council and consists of nine paragraphs, the first of which calls for an immediate, unconditional and permanent ceasefire respected by all parties

Moscow, Minsk in constant contact on potential threats to Belarus — Kremlin

"We have obligations to ensure the security of our ally Belarus within the framework of the Union State, and these obligations are enshrined in the recently published Basic Principles of the State Policy of the Russian Federation on Nuclear Deterrence," Dmitry Peskov pointed out

Decision on strikes inside Russia seals US puppet Zelensky’s fate — commentator

The New York Times reported earlier, citing sources, that US President Joe Biden had authorized the use of US-made ATACMS tactical ballistic missiles for strikes inside Russia

China holds US responsible for disrupted defense ministers' meeting in Laos

Wu Qian stated that the United States must immediately correct its mistakes, "honestly respect China’s main interests, and seek to create favorable conditions for high-level contacts between the military of the two countries"

Soyuz rocket carrying Progress MS-29 cargo spaceship blasts off from Baikonur spaceport

Progress MS-29 will deliver 2,487 metric tons of cargo to the orbital outpost, including fuel, drinking water, compressed nitrogen, various equipment, food and clothing

US decision on strikes inside Russia stems from malice rather than strategy — journalist

According to Sumantra Maitra, Washington’s move will not improve Kiev’s situation

Russian embassy warns UK about dangers of calling for Moscow’s ‘defeat’

According to th statement, London is promoting new rounds of escalation

Russian diplomat accuses West of using coercive measures to punish certain countries

Such measures are aimed at "destabilizing the economic and financial systems of countries that fall out of favor, damaging entire sectors of the economy and destroying global production chains," Sergey Vershinin specified

US is now at war with Russia, Ritter says

According to former US intelligence officer Scott Ritter, the United States "is a direct party to the invasion and occupation of Russian soil," because it helped Kiev plan its incursion into the Kursk Region

Romanian presidential candidate vows to end military aid to Ukraine

It is pointed out that Simion’s popularity has propelled him to number two in the polls after Prime Minister Marcel Ciolacu

Russian troops liberate Dalneye community in Donbass region over past day

Russia’s Battlegroup South inflicted roughly 380 casualties on Ukrainian troops and destroyed a British-made howitzer and four US-made artillery guns in its area of responsibility over the past day

UK police say no video evidence of Russians’ involvement in Salisbury case

According to the report, CCTV cams were not installed on Christie Miller road in Salisbury

Ex-German chancellor never expected Russia to tolerate Ukraine’s NATO membership — memoir

Angela Merkel added that another fallacy was the belief that the status "would act as a deterrent," and that Moscow "would accept these developments without taking action"

Ukrainian frontline may 'collapse' under onslaught of Russian forces — BBC

According to the experts, Ukraine’s incursion into Russia’s borderline Kursk Region turned out to be a "strategic catastrophe" amid "manpower shortages"

Putin sends message to those seeking to 'add fuel to fire' before Trump’s return — expert

The likelihood of a direct armed conflict with NATO is increasing because some individuals in the alliance are ready to raise the stakes ahead of Trump’s inauguration, Andrey Bystritsky emphasized

Kremlin condemns report on Storm Shadow missile use against Russian targets as escalation

Dmitry Peskov chose not to respond to a question about whether Russia has proof that UK-made Storm Shadow missiles had been used against it

Ex-UK Labor party leader wants PM to clarify situation with Storm Shadow missiles

Jeremy Corbyn called for de-escalation of the situationin Ukraine and the search for a diplomatic solution to achieve peace

Defeating Ukrainian forces near Olgovskaya wood, enemy losses: situation in Kursk Region

The Russian Armed Forces have completed the destruction of a Ukrainian battlegroup blocked in the area of the Olgovskaya wood

Official declines to say if US gives Ukraine targeting data for Storm Shadow missiles

US State Department Spokesman Matthew Miller also declined to discuss the presumed first strike on Russia with the missiles

Six European countries accuse Russia of allegedly attacking security architecture

"Moscow's escalating hybrid activities against NATO and EU countries are unprecedented in their variety and scale," the statement reads

Ukraine has around 50 ATACMS missiles — The Times

According to the report, the Ukrainian military has sufficient launchers that are capable of firing them

Russia to address NATO’s engagement in strikes deep inside country — SVR

Sergey Naryshkin observed that the military and political elites in the West are increasingly recognizing the gravity of Russia's intentions and the need for greater caution in their actions

Biden's decision on missile strikes on Russia is his 'last gasp' — Japanese lawmaker

Earlier, Muneo Suzuki emphasized on his blog that the decision that this decision by Biden on the tail-end of his presidency looked like "a last gasp"

Preliminary data shows anti-ship missile downed over Sevastopol waters — official

Governor Mikhail Razvozhayev said that all emergencies services currently work in the high alert mode

Press review: US lets Kiev use anti-personnel mines and Iran may halt uranium enrichment

Top stories from the Russian press on Thursday, November 21st

West’s decision on missile strikes gives Russia free hand to attack NATO bases — expert

According to Dmitry Suslov, retaliatory measures may include the handover of more advanced weapons to the forces "that are directly fighting against the US, particularly, in the Middle East"

Russian State Duma passes law on federal budget for 2025-2027

According to the document, federal budget revenues are forecast to be 40.296 trillion rubles ($404.8 bln) in 2025, 41.84 trillion rubles ($420.3 bln) in 2026, and 43.154 trillion rubles ($433.5 bln) in 2027

Weapons supplied to Ukraine cannot reach Russian territory, Spanish defense minister says

The New York Times reported on November 17 that US President Joe Biden had authorized the use of US-supplied ATACMS tactical ballistic missiles for strikes inside Russia

Trump may soon start talks with Russia following Biden’s decision on ATACMS — news agency

According to Andreas Kluth, the decision on ATACMS may have been another attempt by the current Washington administration to provide Ukraine with support until the president-elect comes to power

Residents of Kupyansk, Kovsharovka in Kharkov Region returning to their homes

People are refusing to go to safer places because of Ukraine's unwillingness to provide basic sanitation for refugees

Russia counts on West's responsibility in nuclear deterrence issues — Kremlin

Earlier, Russian President Vladimir Putin decreed to update the country’s nuclear doctrine, the Basic Principles of the State Policy of the Russian Federation on Nuclear Deterrence

NATO deployment to Ukraine would mark its entry into the war, Russian diplomat warns

According to Maria Zakharova, the Estonian minister is inciting other NATO members to engage in a venture that is "bound to fail"

Trump to continue using Ukraine to contain Russia — Valdai program director

"The US continues to benefit from the Ukrainian crisis, regardless of which administration is in power," Andrey Sushentsov said

Zelensky begs ‘for his country to be flattened’ — US journalist

"Ukraine should be forever grateful that President Putin is calm, rational and kind - because Zelensky is practically begging for his country to be flattened," American political commentator Jackson Hinkle said

Moscow-Washington hotline not in use now — Kremlin spokesman

Dmitry Peskov added that there have been no contacts via this new channel lately

Moscow won’t allow US to silence UNSC as Washington backs Israel — Russian UN envoy

According to Vasily Nebenzya, the Security Council should "bring peace, stability and prosperity to the Middle East"

Russian troops advance in areas north, south of Velikaya Novoselka in DPR — official

Earlier, Vladimir Rogov stated that a successful offensive by the Russian Armed Forces north of Velikaya Novoselka could allow them to encircle the settlement

Canada neglects its sovereignty by approving transfer of land mines to Kiev — diplomat

According to Oleg Stepanov, since the authorities of the country have long acted, "especially in security matters, according to the rule 'what Uncle Sam says, so Ottawa will do' and don’t blush about this."

ICC issues arrest warrants for Netanyahu, Gallant for alleged crimes in Gaza Strip

The Israeli side's objections concerned the court's jurisdiction over the situation in Palestine in general and Israeli citizens in particular, as well as the right of states to conduct investigations independently before referring cases to the ICC

Zelensky to have no input if Russia, US negotiate, ex-Prime Minister says

Previously, Elon Musk said on the X social platform, commenting on Zelensky’s supposition that the United States cannot force Ukraine to "sit and listen" at the negotiating table because Ukraine is an independent country, that Zelensky has an "amazing sense of humor"

FACTBOX: What is known about UAV attacks on Russian regions

During the night, air defenses intercepted and destroyed two Ukrainian UAVs in the skies over the Rostov and Volgograd regions

Trump's new presidency will be fundamentally different from his first — expert in the US

"It is therefore reasonable to expect him to govern for the next four years in a more emboldened, assertive way, and many of his outsider cabinet picks are indicative of precisely that kind of approach," the analyst believes

Biden’s actions increase likelihood of escalation in Ukraine — PM

Viktor Orban asserted that the government’s mission is to prevent Hungary from being dragged into the Ukrainian conflict

Xi Jinping calls for unification of more voices for peace in Ukraine

"We need to bring together more voices of peace and pave the way for a political solution to the Ukrainian crisis," Chinese president said

Russian forces push Ukrainian troops 10 km away from Lisichansk in LPR — expert

Russian troops have taken new lines and positions northwest of Zolotaryoka as a result of successful operations

Biden’s decision to use ATACMS against Russia may 'blow up in America’s face' — US expert

According to Daniel Davis authorizing US long-range weapons to be used against Russia is "foolhardy to the highest order," "especially because there is no military upside for doing so"

NATO enters conflict, Russia has every right to attack its targets now — expert

Col. (Ret.) Lawrence Wilkerson confirmed to TASS that the launch of ATACMS missiles would be impossible without "US/NATO satellite feeds and/or personnel"

French Foreign Ministry refuses to disclose number of SCALP missiles shipped to Ukraine

Ministry Spokesman Christophe Lemoine also avoided answering if Paris supports strikes with these missiles on Russian territory, only saying that the missiles were shipped to Ukraine, and Ukraine

Gallup poll shows sharp decline in Ukrainian support for American policies

The number of people who oppose what the US authorities are doing has risen by 21% and now stands at 37%

Indonesia accepts invitation to become partner state in BRICS, ambassador announces

In this role, Indonesia "will actively contribute to and participate in any initiatives of BRICS," Jose Antonio Morato Tavares emphasized

Ukraine’s former top commander sought to blow up Turkish Stream pipeline, report says

According to the media, Valery Zaluzhny was so thrilled when he learned of plans to sabotage the submarine Nord Stream pipelines across the Baltic Sea that he sought to expand that operation

No Western sanctions to limit Russia’s foreign trade — minister

All restrictions that Western countries impose affect themselves in the first place, Russian Finance Minister Anton Siluanov added

Putin orders protection of critical infrastructure, including Crimean Bridge — Kremlin

Kiev has not accepted the legitimate results of the 2014 referendum, in which the people of Crimea and Sevastopol voted to become part of Russia, and is displeased by the operation of the Crimean Bridge, which connects the Kerch Strait with the Krasnodar Region

At least 66 people killed in Gaza Strip by an Israeli strike — Al Jazeera

It was also reported that over 100 people were wounded

Elon Musk denies his impact on Trump’s decisions on nominates for cabinet positions

This is how the billionaire commented on the article in The New York Post, which claims that he is a close ally of Trump and influences appointments to the future US administration

Humanitarian situation in Gorlovka harsh as Ukraine targets key infrastructure — DPR head

More than 80,000 users were left without power in Gorlovka on Tuesday morning due to the Ukrainian armed forces' shelling

Japanese lawmaker praises Putin's restraint amid decision to strike deep into Russia

Top EU diplomat Josep Borrell confirmed that the US administration had lifted restrictions for US-supplied missiles to be used for strikes up to 300 kilometers inside Russia

Media from unfriendly states will be admitted to Putin's annual press conference — Kremlin

The last Direct Line Q&A session and year-end press conference was held on December 14, 2023

Russia’s revised nuclear doctrine makes defeat over its army impossible — SVR chief

According to the latest version of the document, the core principle is that nuclear weapons are a last resort to ensure the protection of the country’s sovereignty

China slams US nuclear policy for undermining global stability

The United States continues to modernize its nuclear triad, Lin Jian noted

Ukrainian special services assemble unit for sabotage attacks in Kupyansk — official

According to Yevgeny Lisnyak, the special services threaten people with criminal charges of collaborationism if they refuse to join the unit

Freezing Ukrainian conflict unacceptable for Russia, says Kremlin

"It is important for us to achieve our goals, which are well known to everyone," Dmitry Peskov emphasized

Russia must be able to defend itself — Erdogan on revised nuclear doctrine

The Turkish leader reiterated that "both Russia and Ukraine are Turkey’s neighbors"

Russian army pushes Ukraine out of Kurakhovo water reservoir’s north shore

According to Igor Kimakovsky, the only road the Ukrainian armed forces could use to leave the city is under Russia’s control

Captives, Ukrainian losses: situation in Kursk Region

Over the day, the enemy lost more than 150 people, while five Ukrainian servicemen surrendered

Lukashenko tells Putin situation is "starting to get tense with Wagner"

The Belarusian leader noted that they want to go to Warsaw

Putin confirms Russia’s readiness to assist CAR with security challenges

"Both leaders exchanged views on regional issues, focusing on the fight against the terrorist threat and ensuring stability across the Central African Republic," the statement reads

Russian troops liberate Ilyinka community in Donbass region over past day

Russia’s Battlegroup South inflicted roughly 500 casualties on Ukrainian troops and destroyed five enemy ammunition depots in its area of responsibility over the past day

Rubicon center drones hit Ukrainian equipment in Russia's Kursk Region

The Russian Defense Ministry released footage showing the destruction of the enemy equipment

Humanitarian crisis in Kiev-controlled Kupyansk district of Kharkov Region near critical

According to Yevgeny Lisnyak, the Ukrainian authorities supply water for a short time, once every three days

US admiral says Washington should be ready for talks with Russia, China

The Department of State and other US agencies "should continue to engage our competitors in real and substantive dialogue," Rear Admiral Thomas Buchanan said

More desperation in Zelensky's appeals, ex-NATO commander says

According to Stavridis, the Ukrainian armed forces are facing "mounting personnel losses," while Kiev is growing concerned about the possibility of the incoming US administration

NATO supports Ukraine not out of charity but for its own strategic interests — deputy head

Boris Ruge argued that NATO now has hundreds of thousands of troops that could be deployed to the alliance's eastern flank or elsewhere within ten days

Press review: Uranium costs soar as Moscow updates nuclear doctrine and US OKs attacks

Top stories from the Russian press on Wednesday, November 20th

Putin’s Q&A session and press conference to be held on one of December Thursdays — Kremlin

"The direct line and press conference are being prepared," Dmitry Peskov said

Allowing Ukraine to strike deep inside Russia with US weapons irresponsible — Slovak PM

Robert Fico noted that authorizing the use of long-range weapons for strikes against Russia would not alter the balance of power in the conflict zone

Kiev suffering fiasco on entire front line — aide to DPR head

Igor Kimakovsky said that "if the West is not physically involved in this war, that is, if NATO is not involved, then Ukraine is actually losing"

Zelensky admits Ukraine can't fight its way back to 1991 borders

Vladimir Zelensky also talked about the Crimean Peninsula, stating that Kiev is ready to "bring Crimea back diplomatically"

Russia’s reaction to Austrian OMV’s failure to pay for gas justified — MFA

The company stated it would seek damages amounting to 230 million euro for failing to receive the contracted volume of gas from the Russian company for delivery to Germany

Putin previously warned about Kiev's attempts to blow up TurkStream pipeline — Kremlin

According to the newspaper, Zaluzhny was so enthusiastic about the Nord Stream pipelines sabotage that he "even wanted to expand" the operation

Russian troops raise flag in central Kurakhovo in Donetsk region — politician

Russian army units have advanced much farther into the city’s northern part, in particular, along the southern bank of the Kurakhovo reservoir, Vladimir Rogov specified

Biden's decision to use ATACMS on Russia threatens to kill Americans — Tucker Carlson

The journalist also criticized US House of Representatives Speaker Mike Johnson (a Republican representing the state of Louisiana) for "not even mentioning it in public or in leadership meetings" with factions in the lower house of Congress

Iran claims to have disabled Israel’s Iron Dome air defense in past strikes

Major-General Gholamreza Soleimani stressed it was essential to inform the world that Israel had failed and now survives solely relying on support from the United States

US Congressman urges to impeach Biden for allowing strikes deep into Russia

"By authorizing long range missiles to strike inside Russia, Biden is committing an unconstitutional Act of War that endangers the lives of all US citizens," Thomas Massie said

Japanese lawmaker urges global condemnation of decision on missile strikes on Russia

Muneo Suzuki described Joe Biden’s decision as "dangerous and provocative"

Russia encircles largest Ukrainian fortification in southern DPR — security services

"The enemy positioned in the fortified area in Velikaya Novoselka in the south of the DPR is already trapped in a kill zone," the source said

Russian forces dislodge Ukrainian troops from half of positions in Kurakhovo in DPR

The Ukrainian military is attempting to move reserves to the city’s western outskirts as shown by data-recording equipment, the source said

Russia to use revenues from frozen assets of Western investors — Finance Minister

Tit-for-tat measures will be implemented after receiving information about unfriendly actions of Western countries, Anton Siluanov noted

ATACMS missiles unlikely to keep Kiev from losing conflict — American expert

Daniel Davis also noted that "continuing to ignore reality" would only increase "the ultimate cost of losing" the conflict for Ukraine

Bitcoin price exceeds $96,000, sets new historical record — Binance platform

Experts previously told TASS that Bitcoin could easily reach the $100,000 mark in the coming days and continue to grow further - up to $300,000 in the current growth phase

Railroad development to strengthen ties with foreign partners — Russian PM

Mikhail Mishustin added that "it is necessary to modernize border crossings in coming years, including introduction of practice of electronic paperwork"

US strategic forces ready for Biden-Trump transition — Pentagon

"The nuclear forces is ready on January 19, just like it will be ready on January, 20," Rear Admiral Thomas Buchanan said

US missile defense base in Poland long among Russian army’s targets — Foreign Ministry

Maria Zakharova stated that the US-NATO construction project, ongoing for nearly a decade with complete disregard to Russian security concerns, has consistently been a focus of Russia's attention

US decision on missile strikes aimed at provoking Russia, expert says

According to Andrey Sushentsov, Biden is under pressure from Washington’s allies and "the hawks" in his government who believe that the US is not providing enough support to Kiev