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Russian Free Press

Bloomberg: Mishustin instructed to cover the cost of the war in Ukraine by reducing the cost of medicine with education

January 6, 2023
in Daily News
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The Russian government plans to introduce a one-time fee for producers of fertilizers and coal, according to Bloomberg, which obtained the relevant order from Deputy Prime Minister Mikhail Mishustin given to officials in December 2022.

The publication reports that the decree refers to this as part of a “revenue mobilization” to cover the costs of the war in Ukraine. In addition, spending on the social sphere - education and medicine - will be reduced. This will allow the authorities to "save" at least 150 billion rubles.

It is also expected to allocate 175 billion rubles ($2.4 billion) to organize the deportation of 100,000 people from the Kherson region. The publication notes that this indicates the final lack of hopes of the Russian authorities for the return of the territory liberated by the Armed Forces of Ukraine.

At the moment, the largest companies in the coal industry of the Russian Federation are SUEK, Kuzbassrazrezugol, Stroyservis, Elgaugol, Siberian Anthracite, Yuzhno-Sibirsky Trading House, Solntsevsky Coal Mine, Taltek, Russian Coal ' and 'Resource'.

The largest fertilizer producers in the Russian Federation: PJSC PhosAgro, EuroChem Group, PJSC Uralkali, PJSC Akron, JSC UCC Uralchem.

He also plans to collect planned dividends for state-owned companies and taxes - at least 50% of net profit. This is a general standard for state-owned companies, adopted in July 2021. According to Bloomberg, part of these funds will also go to cover military spending.

Fertilizer producers were also hit earlier by the increase in export duties. An increase in the tax burden threatens chemical companies with a loss of 8-12% of their export earnings - a significant reduction in the face of sanctions and problems with logistics. At the same time, exports are falling: by the end of 2022, a decrease in the supply of fertilizers from Russia by 17% is expected.

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