After the Vote, the Bill

Russians are facing a wave of post-election price increases, from utilities and mortgages to travel and shopping. Independent newspaper Novaya Gazeta examined what the changes could mean for a typical Moscow family.

Utility rates rose on October 1 for the second time this year, after an increase originally scheduled for July was cleverly postponed until after September's elections. The steepest increases came in Kuzbass, at 19.8%, and Yakutia, at 18.9%, while the smallest increases, at 8%, were recorded in Chukotka and Khakasia. Notably, the Russian Housing and Utilities Council, an industry association, says rates should be 40% higher to cover costs. Another nationwide increase averaging 11% is expected next July.

In its September report, Russia's central bank found that Russians perceived annual inflation at 15.1% and expected prices to rise 14.2% over the next year. Yet the same bank's official forecast was far more restrained, projecting inflation of just 6% to 7% for 2026 as a whole. Businesses planned average price increases of 7% over the next three months, while 52.9% of Russians surveyed said they preferred saving or cutting discretionary spending.

More increases are coming. Planned 2027 excise tax hikes would raise levies on beer and wine by as much as 6% and 6.8%, respectively. Starting on December 1, electronics will face a new fee ranging from R37 to 746 ($0.43 to $8.76) per device.

Changes to subsidized family mortgages took effect on October 1. Rates now vary by number of children and region, and the preferential period has been halved from 30 to 15 years. Buyers must register their permanent residence within 271 days and maintain it for five years. In Moscow and surrounding regions, a family with one young child can borrow up to R12 million ($140,911) at 12%, provided monthly income reaches R240,000 ($2,818). Families with more children can qualify for lower rates. For those who do not qualify for the subsidized program, buying a home is even more expensive, with conventional mortgage rates ranging from 17% to 23%. Meanwhile, Russians continue to take on more debt. According to the central bank, mortgage debt reached R24.8 trillion ($291 billion) in August, while consumer debt rose 1.7% to R13 trillion ($153 billion).

Transportation is also becoming more expensive. Long-distance train fares and baggage charges increased 9.2%. Kommersant reported that officials are considering additional airline charges of about R500 ($5.87) for domestic flights and R1,000 ($11.74) for international flights. Motorists face rising costs, too, while buying a new car is becoming more difficult. Starting on January 1, 2027, Russia will raise vehicle recycling fees by another 10% to 20%, depending on the type of vehicle.

Beyond the already approved price increases, the government is preparing another tax overhaul. Days after September's elections, the Finance Ministry unveiled proposals aimed at balancing the 2027 budget and funding priority military spending, according to Finance Minister Anton Siluanov. The changes would apply progressive tax rates of 13% to 22% to bank deposit interest, stock dividends and property sales, up from the current 13% to 15%.

Shopping from foreign online retailers could also cost more. The proposals include a 22% value-added tax on purchases from overseas marketplaces, payable by the platforms themselves, and a flat R100 ($1.17) customs fee on every international parcel worth up to 200 euros ($224). Such shipments are currently processed free of charge. 

Some relief is planned: The monthly minimum wage would rise 6.8% to R28,935 rubles ($340) in 2027, and the average retirement pension is projected to reach R29,904 ($351) by year-end.

To illustrate how October's price increases and upcoming reforms could affect household budgets, journalists at Novaya Gazeta calculated the potential expenses of a hypothetical Moscow family with two working parents and one child. Their combined pretax monthly income is R367,200 ($4,312), assuming both earn the city's average salary, well above the median. The family plans to buy a larger apartment using a R12 million ($140,911) subsidized mortgage. Under the previous rules, a 6% loan over 30 years would have cost about R72,000 ($845) a month. Now, with the rate doubled to 12% and the repayment period halved to 15 years, monthly payments could reach R144,000 ($1,691). Their utility bill would also rise from R9,700 ($114) to over R11,000 ($129). Together, mortgage and utility expenses would jump from R81,700 ($959) to more than R155,000 ($1,820) a month — an increase of over R73,000 ($857), even before higher food and transportation costs.