Russians are increasingly using cash transactions as a way to avoid higher taxes and reduce their exposure to economic uncertainty, particularly amid the ongoing war in Ukraine. This trend has intensified since 2022, following military actions such as partial mobilization and the Wagner Group mutiny. The shift toward cash is complicating tax collection for the Russian government, which is already grappling with a growing budget deficit and slowed economic growth. While the oil and gas industry has seen some benefits from rising global oil prices, the overall economy remains weak, with the government having revised its GDP growth forecast downward. To address revenue shortfalls, the Kremlin raised VAT rates and adjusted thresholds for small businesses, but this has pushed many firms toward informal practices like cash-only transactions and unreported wages. Experts warn that these measures risk further eroding formal economic activity.
Bias read (Center): The article presents a balanced view of the situation, highlighting both the economic pressures faced by Russians and the government's attempts to manage the fiscal impact. It includes perspectives from various stakeholders, including business owners, officials, and analysts, without overtly favorit
