01 Nov, 23

Putin Faces Election Challenge As Fuel Subsidies Backfire

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Subsidizing fuel is creating a budgetary crisis in Russia amid its ongoing war in Ukraine and soaring inflation, with the state budget now expected to take a multi-billion-dollar hit, according to Reuters calculations.  In September, Moscow moved to slash by 50% a subsidy for oil refiners, which Reuters calculates will have to be offset by some $4.3 billion in subsidies to other industries, plus a one-off tax that equates to over $3.7 billion.  When Russia moved to cut its damper subsidy for refiners just over a month ago, the knock-off…

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