The Kremlin Wants to Cool Down The Russian Economy. Why That Could Be A Problem

Radio Free Europe ^ | 9/15/2025 | Mike Eckel

[marcusmaximus]

Driving a taxi in the Russian capital was never very lucrative for Said, a Tajik migrant living in the Moscow region, but it paid the bills.

Now, he says, the price of gasoline has jumped by more than 30 percent in recent weeks -- from 45 rubles a liter to 60. All told, his daily take-home pay is just three-quarters of what he used to net, he says; he can barely cover living expenses.

"You work, and you pay your rent, and you pay for your gas -- those are all your expenses," he told RFE/RL, asking only to be identified by his first name.

And the Russian capital isn't the only locality seeing a spike.

"Seems that Russia is on the brink of a full-scale fuel crisis," one of Moscow's largest tabloid papers declared last month, pointing to growing number of regions reporting shortages and price hikes.

The shortage is blamed mainly on a decidedly noneconomic factor: a targeted drone campaign by Ukrainian forces that's knocked out as much as 17 percent of Russia's refining capacity.

But it's rattling Russian consumers who are increasingly feeling the effects of a broader slowdown. After years of torrid growth propelled by government spending to fuel the war on Ukraine, Russia's economy is grinding to a crawl.

[delta7]

Fools….in WW2 the Russian people ate shoe leather while fighting back the Nazis. Their resolve and determination hasn’t changed. The Russian population is not like the Western population, which was the Neo-Cons first mistaken assumption.

The western war cheerleaders are learning a valuable lesson.

[econjack]

Sounds to me that the taxi driver needs to take to the streets and protest the high price of fuel! Oh...wait...you can’t do that without getting an all expense paid trip to Siberia.

[Hessian]

60 rubles for a liter of gas equals $2.88/gallon. Pound sand.

[ansel12]

“”””Fools….in WW2 the Russian people ate shoe leather while fighting back the Nazis. Their resolve and determination hasn’t changed. The Russian population is not like the Western population””””

Any people can do that, Americans can do it, Parisians, even Canadians, all they need is to be under the iron fist and the death squads of a Stalin, or Mao, or Pol Pot, when you have no choice, you try to survive and there is nothing you can do about it, it isn’t a matter of free will, or strength, or commitment, you simply exist and might live, or might die.

[alexander_busek]

Driving a taxi in the Russian capital was never very lucrative for Said, a Tajik migrant living in the Moscow region, but it paid the bills. Now, he says, the price of gasoline has jumped by more than 30 percent in recent weeks -- from 45 rubles a liter to 60. All told, his daily take-home pay is just three-quarters of what he used to net, he says; he can barely cover living expenses. "You work, and you pay your rent, and you pay for your gas -- those are all your expenses," he told RFE/RL, asking only to be identified by his first name.

I had thought that these Central Asians were more stoic!

Regards,

[Paul R.]

Well, comrade... If you do all the ying-yang to get to “equivalent economic comparison”, or PPP, or whatever the Russian tools and trolls usually do to make Russia’s economy look better, $2.88 would be double, in the USA. Presently I’m paying $2.69 for Marathon or BP 87 octane, less 15 cents if I use my BP card, less 1% rebate.

Ya’ know what’s even harder to pound than sand?

Oil.

[ichabod1]

peutin lied. he LIED! pipl died!

[Paul R.]

Which Russians should we compare to? 1941? Or, 1991? Or, 1917?

That said, to some degree I agree that Putin and his gang will wring the last ruble they can out of the Russian population, to stay in power. Further, economic sanctions usually harm the sanctioner(s) too: In this case the most likely result would be increased inflation, so, numerous Western Governments, including Trump’s, would be at serious risk if truly effective economic sanctions were imposed.

Ukraine’s solution is to take out Russia’s distillation towers. Lacking certain 30+ year old US tech, but working well in other aspects, this campaign is gradually but overall pretty steadily cutting into Russia’s refined oil products supply. Russia has a large export margin, so, it will take a few months for shortages to become critical. Ukraine only needs to keep the hits coming faster than Russia can effect repairs, and so far, the numbers say that is a pretty safe bet, and accelerating. The drone tech is only going to get better.

This is a problem Putin can’t fix with Rubles or reputed Russian toughness. It is a physical problem: Without refined products, large countries cannot function. Any, and particularly Russia with its vast size, would literally grind to a halt.

Putin “could” turn to nukes to level Ukraine, but that likely leads to a general nuclear war. A cease fire and negotiating, seriously, while Trump is in office, becomes Putin’s best option. The sooner the better, for Russia.

[delta7]

That said, to some degree I agree that Putin and his gang will wring the last ruble they can out of the Russian population,
————————-

You are ill informed. Russia’s taxes on their citizens is very low compared to the West, especially the EU. EU citizens are the highest taxed on the planet, losing up to 48 per of their incomes….and increasing due to their war….the EU is broke, and their war is pushing them into default as witnessed by France and England now negotiating with the IMF for a bailout.

From AI:

“ In Russia, citizens are subject to a personal income tax rate of 13% on their earnings, which includes income from labor, pensions, interest, and dividends. The tax system also includes various federal, regional, and local taxes, with the overall tax structure governed by the Russian Tax Code...”

When I was working in Moscow, I marveled at their tax structure, a flat 13 percent was taken from their salaries by the employer. Simple easy, no need to spend hours filling out forms, paying CPA’s, etc…with free health care ( doctors still make house calls). Those not happy, can buy medical insurance, 5 percent do.

There are flaws, but most definitely not as portrayed by the Russia bashers.