Russian regions are running out of money

The latest Stratfor Intelligence Report analyzes the rapidly deteriorating fiscal and economic conditions of the 83 Russian regions. Part of the problem is the Kremlin’s ever more confiscatory policy vis a vis the regions. Only 37% of the income generated by the regions stays in the regions, while Moscow subsidies returns no more then 20% of the rest. Regional taxes have gone up 12%, as federal aid to the regions has collapsed from $56 billion in 2012 to $28 bln in 2014 and is down another 15% in 2015. As a result, 63 of the regions are near default and 20 have already defaulted technically.


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