Although Vladimir Putin promised that Russia would not raise VAT until at least 2030, the government will increase the rate from 20% to 22% starting in January. According to the Financial Times, the Kremlin is doing everything possible to shift the blame for economic difficulties onto Western countries through the media, shielding Putin from criticism.

The decision must not be linked to Putin in the media

Documents obtained by the Financial Times reveal that government officials and heads of state media met behind closed doors to coordinate the propaganda strategy, Telex reports. Among the points discussed was a strict directive: media coverage must under no circumstances associate the VAT increase with Putin personally. Instead, the focus should be on the “war activities” of Western nations.

Putin warned about Budapest assassination attempt
Photo: Anadolu/Roscongress Press Service

State media should highlight positive aspects

Guidelines for state media emphasise highlighting the “positive” elements of the new budget, such as higher taxes on gambling companies, while also drawing attention to completed investments, schools, hospitals, and planned future projects. Suggested slogans included: “Your money or your life?” and “Nothing is more important than security.”

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The Kremlin in Moscow. Photo: Pixabay

Familiar rhetoric: the West supports war, Russia supports families

The Kremlin is reportedly encouraging media outlets not to treat the budget changes as breaking news, but to focus instead on increased defence spending and infrastructure development. According to the instructions, the message should be clear: Western countries are prolonging the war in Ukraine and thus forced to cut social spending, whereas Russia “does not reduce support for families.”

Analysts say the VAT increase reflects the Kremlin’s shrinking economic manoeuvring room. Lower oil prices and sanctions have reduced energy revenues, forcing Moscow to rely on alternative sources of income. While the budget for the next three years is nominally balanced, in practice, spending has consistently exceeded planned amounts, potentially leading to larger deficits.

Hungarians already know this approach

According to 444, the Kremlin’s strategy mirrors past practices of the Hungarian government: economic difficulties are blamed on external factors (here, Western countries) rather than poor governance. A key element of the Kremlin’s communications is ensuring that media coverage never links Putin personally to this unpopular measure. Another core message, according to 444, is that Russia’s economic struggles are caused by the war-supporting West.

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Viktor Orbán and Vladimir Putin in 2023. Photo: Wikimedia Commons