In the Russian Federation, tariffs for housing and communal services have increased by more than 40% since 2022, and their next increase has been approved for 2026—after five years of full-scale war against Ukraine, the increase will exceed 50%.

According to Ukrinform, this was reported by the Foreign Intelligence Service of Ukraine.

“The Russian government has approved the parameters for indexing utility rates for 2026, providing for a double increase – a symbolic one in January and a significant one in October, immediately after the elections to the State Duma,” the report says.

According to intelligence, the total annual increase will be 13% – the maximum since the start of the full-scale war against Ukraine. In every sixth region, tariffs will increase by 15% or more.

From January 1, all entities of the Russian Federation can increase tariffs by a uniform 1.7%. From October, regional limits with an average value of 11.1% will apply, but the federal government has allowed local authorities to exceed the set limits if necessary. The last time a comparable level of indexation was recorded was in 2022, when tariffs were increased by more than 13.3%, the SZRU noted.

Despite the 2023 moratorium, the total increase from 2022 to October 2025 exceeded 40%. After the 2026 indexation, the total increase in tariffs over five years of full-scale war against Ukraine will exceed 50%.

The biggest increases were in hot water (44.4%), heating (44%), cold water and sewage (42.5%). Tariffs for garbage collection rose by 39.3%, electricity by 37%, and gas by 34%.

The highest indexation rates for 2026 have been set for Stavropol (22%), Dagestan (19.7%), certain regions of Central Russia and Siberia, as well as the North Caucasus.

In Moscow and a number of other regions, the increase will be 15%. In most of these regions, tariffs have been rising at a faster rate than the national average since the beginning of the war against Ukraine.

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The FISU noted that “the Kremlin’s official statements about linking tariffs to inflation do not correspond to the current dynamics: with inflation of up to 7% in 2025, tariffs have already increased by 12.7%, exceeding the limit set by the government. Given that housing and utility costs account for about 10% of Russians’ consumer basket, a new wave of sharp indexation will increase inflationary pressure and further hit households, effectively shifting the state’s financial risks onto them.”

As reported by Ukrinform, Russia plans to raise the VAT rate to 22% from January 1, 2026, which indicates a budget deficit caused by increased military spending and reduced export revenues.

Photo: Foreign Intelligence Service of Ukraine