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Kremlin So Strained by Sanctions That Putin May Hike Taxes for the First Time, Says NATO Chief

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Photo of Vlad Litnarovych
Vlad Litnarovych
News Writer
Russian leader Vladimir Putin, during a meeting on the development of “new regions”, annexed from Ukraine, at the Kremlin, June 30, 2025, in Moscow, Russia. (Source: Getty Images)
Russian leader Vladimir Putin, during a meeting on the development of “new regions”, annexed from Ukraine, at the Kremlin, June 30, 2025, in Moscow, Russia. (Source: Getty Images)

Russian leader Vladimir Putin is weighing the option of raising taxes as US sanctions tighten the financial screws on the Kremlin, NATO Secretary General Mark Rutte said in an interview with El País published November 26.

Rutte pointed to the Biden Administration’s latest sanctions targeting Russia’s two largest oil companies—Rosneft and Lukoil—and described the consequences as far broader than Moscow expected.

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“These measures have a significant impact, because what President Trump did against Rosneft and Lukoil also affects countries like China and India, which are concerned that US sanctions may affect them, as they still do business with these companies,” Rutte said. “This means we are seeing considerable first- and second-order effects.”

According to the NATO chief, Russian media have already begun discussing the possibility of a nationwide tax hike—an option Rutte said no leader embraces unless the fiscal pressure is overwhelming.

“I was a politician, and I know the last thing you want to do is raise taxes, because it’s unpopular with voters,” he noted. “So if Putin is now at a point where he has to increase taxes, that says a lot about the situation in Russia. The war against Ukraine is really impacting the lives of Russians.”

Rutte added that economic strain could eventually shift attitudes inside Russia’s elite, describing the Kremlin’s financial problems as a potential catalyst for political pressure from within.

“In the end, this will undoubtedly reach the elite in Moscow, and people will start calling Putin and saying: ‘Yes, we support you, but could you explain again why this is good policy? ’” he said.

Earlier, several regions in Russia started reducing tax benefits, hoping to boost their budgets amid growing economic challenges.

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