Recently, Russians have increasingly asked: “What is happening?” This question is linked to a rapid surge in food prices. Social media is flooded with videos from stores where citizens express shock at sharply increased costs, attributing these trends to the rise in VAT from 20% to 22% starting January 1, 2026, as well as the ongoing war against Ukraine.
Throughout 2025, the Russian economy noticeably declined. Even government representatives and guests on tightly censored state TV now publicly admit: there is not enough money, prices are soaring, and real incomes are dropping. Small businesses in major cities are closing en masse due to higher taxes and a general decline in economic activity.
Not only are prices rising, but utility tariffs have also jumped significantly. In some regions, entrepreneurs are organizing protests in response. The government is thus attempting to offset budget deficits caused by massive war spending with further taxes and fees.
Russian officials, propagandists, and oligarchs now acknowledge serious structural problems. For example, Oleg Deripaska, a prominent oligarch, stated the country is in crisis and unlikely to recover quickly, while state TV guests now discuss the “rollback” of the economy.
The overall picture: higher taxes, soaring prices and tariffs, and declining real incomes—all direct results of the war in Ukraine and current government policy.
The author urges continued financial support for the Ukrainian army and fundraising for drones, insisting only Ukraine’s victory can change these trends.
The video also touches on US policy—specifically President Trump’s interest in Greenland—and expresses concerns about further destabilization of international order.
The report concludes with thanks to Ukrainian volunteers and the military for their efforts.
