Category EU to Surrender Russian Assets to Ukraine

Jul 18 2024

Russia Raises Taxes to Fund War


Posted originally on Jul 15, 2024 By Martin Armstrong 

Russia 5 Rubles

The people always lose in times of war. Vladimir Putin is looking to the Russian civilians to help fund the war that has lasted far longer than anticipated, thanks to Ukraine having backers with deep pockets. The flat tax rate of 13% that Putin implemented when he took over for Yeltsin in 2001 is being ratified for the first time I nearly 25 years.

Families earnings under 2.4 million roubles ($27,312.14 USD) will maintain the 13% rate. Those earning between 5 and 20 million roubles (>$227,592.80 USD) will face a flat tax rate of 18%, while those earning between 20 million to 50 million roubles (%$568,982.000 USD) will face a 20% tax. The highest earners bringing home over 50 million roubles annually will be taxes 22%.

Now, this is still a light rate of taxation compared to what we see elsewhere. Still, people and businesses alike are displeased. The corporate tax rate will rise by 5% from 20% to 25%. The government expects to generate an additional 2.6 trillion roubles in revenue once the tax is implemented next year.

Russia’s Finance Ministry believes that 2 million people, 3.2% of the working population, will see a rise in their taxes. Taxes on investments will not change. “The changes are aimed at building a fair and balanced tax system,” Finance Minister Anton Siluanov said, adding that the additional funds would bolster Russia’s “economic well-being.” He said the tax hikes will help fund social spending, including state child support and Russia’s pension fund.

It is almost unheard of for a nation to maintain the same rate of taxation for two decades. The flat rate was big selling point of Putin’s success and popularity among the Russian people. Yet, wages in Russia have also risen at the fastest pace in over five years, with a 7.3% uptick in 2023. Russia is expected to spend at least 40% of its budget on the war in Ukraine. Russia now must prepare for a prolonged war as NATO has become heavily invested and has backed the country into a tight corner.

Jun 13 2024

EU to Surrender Russian Assets to Ukraine


Posted Jun 13, 2024 By Martin Armstrong 

Ukraine War Wealth

The United States discussed plans to provide Ukraine with a loan paid out with Russian assets that have been frozen since the start of the war. The bulk of frozen Russian assets lie in Europe, and the European Union has announced its plans to “make Russia pay” by allocating those assets to Ukraine to fund its war against Russia directly.

Ukraine will receive $1.6 billion in frozen Russian assets this July, according to European Commission President Ursula von der Leyen who spoke at the Ukraine Recovery Conference 2024 on June 11. She stated that 90% of stolen Russian funds will go directly to defense, while the other 10% will be put toward the reconstruction effort. “My friends we have always said that Russia must be held accountable for its crimes and now we make Russia pay,” von der Leyen said.

Leyen Ursula von der

I already noted that President Joe Biden said Ukraine will receive a loan of up to $3.7 billion through 2025. The elites claim these funds amount to money that the Russian oligarchs stole from the Russian people, but that is simply not the case. The West has confiscated assets from a foreign nation during a time of peace as Ukraine is not in the NATO alliance. Now the West is using those illegally confiscated assets to attack its adversary. This is complete and total economic warfare.

No one knows where the money that is packaged as Ukrainian aid actually goes. Portions are funneled back into the military-industrial complex and paid out to the very nations supplying aid. Everyone acts on the invisible hand in their own best interest. None of these aid packages were meant to be a handout, and Ukraine would suffer the repercussions.

2023_02_26_23_28_07_Moscow_warns_EU_over_seized_assets

Russia was patient as the West held their citizen’s wealth hostage. Putin has said numerous times that he is fighting a war with the West and not Ukraine at this point in time. Russia would have easily defeated Ukraine had there been no interference, and Russia would have never invaded in the first place had their been no interference (see: Minsk Agreement). Boris Johnson took it upon himself to go to Ukraine the moment peace was on the table to foil that plan.

Economic warfare is now on the table. China has been watching. Europe and the US are not at war in China, Taiwan is not in NATO, but nothing is preventing them from seizing Chinese assets over Taiwan and claiming that they are merely fighting for freedom. There is no longer respect for international law; the rules no longer apply.