First Russian Region Slashes Benefits for “Special Military Operation” Veterans Over Budget Crisis

Authorities in the city of Yurga in Russia’s Kemerovo region have sharply reduced kindergarten fee subsidies for families of soldiers fighting in Ukraine, The Moscow Times reported on February 12, citing Russian media.

Residents told Russian state media outlet that a municipal decree approved on December 30 cut compensation from 100% of childcare costs to just 25%, leaving parents to cover the rest.

Full reimbursement will reportedly remain only for families where a parent has been killed or declared missing in Ukraine. A source in the regional government said similar cuts could follow in other districts, depending on local budget shortfalls, The Moscow Times wrote.

Yurga is considered a major military hub, hosting several large Russian army formations and the Yurga training ground, one of the Central Military District’s largest testing and exercise sites. The city has a population of about 80,000.

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War in Ukraine

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The reduction comes as the Kemerovo region faces a deepening fiscal crisis driven by falling coal-sector revenues. The regional budget deficit reached $721 million in 2025, more than a quarter of total income, with reports of delayed salaries and reduced bonuses for public-sector workers, according to The Moscow Times.

Previously, Russia’s federal budget posted a deficit of $22.3 billion in January, nearly half of its full-year target.

Revenues totaled $30.7 billion, down 11.6% from a year earlier, as oil and gas income fell by 50% to a five-year low of $5.1 billion. Non-oil and gas revenues rose 4.5% to $25.6 billion, with value-added tax receipts jumping almost 25% to $14.7 billion after the VAT rate increased to 22% from January 1.

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