Putin begs oligarchs for money to help boost Russia’s crippled economy
Russia’s president, Vladimir Putin, has reportedly turned to the country’s richest businessmen for financial help as the strain of the war in Ukraine continues to weigh on the national economy.
During a meeting Thursday with a large group of Russia’s financial leaders, Putin asked wealthy oligarchs to contribute significant funds to support the country, according to people familiar with the discussion who spoke to the Financial Times. Despite the growing economic pressure caused by the conflict, Putin also made clear that Russia intends to continue fighting until it achieves victory.
The request marks another effort by the Kremlin to push Russia’s wealthiest individuals to help cover the costs tied to the war in Ukraine, which is now in its fifth year. However, this was reportedly the first time Putin personally appealed to major business figures for direct financial contributions.
Kremlin spokesman Dmitry Peskov rejected claims that the money would specifically fund military operations. Still, he confirmed that the topic of donations came up during the meeting and said Putin supported the idea.
According to Peskov, one attendee proposed setting aside a very large personal contribution for the government, describing it as a family decision. He added that many of the business leaders present built their companies during the 1990s and often benefited from connections with the state. Because of that history, Peskov said, some of them feel a responsibility to give back financially.
Sources told the Financial Times that when Putin raised the issue, it effectively ensured the businessmen would agree to provide funding. Many of those present already support Russia’s military campaign in Ukraine.
At least two participants reportedly said they were willing to donate, including billionaire Suleiman Kerimov, who pledged more than $1.2 billion, according to people familiar with the meeting.
Russia’s defense spending increased sharply last year, rising by 42 percent as the ruble weakened in value. To help finance the war effort, the government also raised the value-added tax by two percentage points to 22 percent. The increase is expected to bring in about $7.4 billion from small and medium-sized businesses over the next three years.
Russia’s economy minister, Maxim Reshetnikov, said Thursday that officials are also considering another windfall tax this year. The government previously imposed a one-time 10 percent windfall tax on large companies in 2023.
At the same meeting, Putin stated that Russian forces would continue fighting until all of the Donbas region in eastern Ukraine is under Moscow’s control. Earlier in negotiations with the United States, he had indicated support for turning Donbas into a demilitarized zone, but later reversed that position after Ukraine declared it would not give up the territory.
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