The Russian government has recently decided to raise the retirement age and VAT. CRC member Martin Brand analyses whether these decisions were necessary and what social disruptive force they could unfold.

Value-added tax in Russia is to rise from 18 to 20 percent. But it is above all the pension reform that moves people in Russia, writes Brand: The regular retirement age is to rise from 55 to 63 for women and from 60 to 65 for men. If you look at life expectancy, especially of Russian men (67.5 years), it is obvious that this reform is extremely unpopular: according to a survey, 92 percent of the population are against it. Protests are already taking place on online platforms and in the streets.

On the other hand, the reform seems inevitable: the pension fund is chronically in deficit, in 2018 the equivalent of 17.7 billion euros will be missing, 40 percent of revenues will come from the state budget. "This tension between economic and social factors," writes Brand, "builds the background of the debate about Russia's pension system reform - at the latest after the World Cup". 

Further information:
The detailed article for the Federal Agency for Civic Education


Contact:
Martin Brand
CRC 1342: Global Dynamics of Social Policy, Research Centre for East European Studies
Klagenfurter Stra├če 8
28359 Bremen
E-Mail: martin.brand@uni-bremen.de