US sanctions push Putin to consider unpopular tax hike, says NATO chief
Russian President Vladimir Putin (photo: Getty Images)
Russian President Vladimir Putin has begun considering an unpopular decision due to US sanctions. It concerns raising taxes in Russia, NATO Secretary-General Mark Rutte said in an interview with El País.
Effect of US sanctions
Commenting on the introduction of US sanctions against the two largest Russian oil companies, Rutte emphasized their significant impact.
"This has a significant impact, because what President Trump (US President Donald Trump — ed.) did against Rosneft and Lukoil also affects countries like China and India, which are concerned that US sanctions could affect them, since they still do business with these companies," he said.
"This means we are seeing significant first- and second-order consequences," Rutte added.
Kremlin considers raising taxes in Russia
The NATO Secretary General also noted that Russian media have already reported that the Kremlin is considering raising taxes — a step that, according to him, is always unpopular and indicates the depth of economic pressure the Kremlin is experiencing.
"I was a politician, and I know that the last thing you want to do is raise taxes, because it is unpopular with voters. So if Putin is now at the point where he has to raise taxes, it says a lot about the situation in Russia. The war against Ukraine is really affecting the lives of Russians," Rutte said.
Impact on attitudes of Russian elites and society
According to him, economic pressure may become one of the key factors in changing the attitudes of Russian society and elites regarding continuing the war against Ukraine.
"In the end, this will certainly 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?'" the NATO chief noted.
US sanctions against Russian oil
In October, the United States announced sanctions against Russia's two largest oil companies, Rosneft and Lukoil, to force Putin to come to the negotiating table with Ukraine.
The new restrictions from Washington apply not only to the two leading Russian companies but also to 36 subsidiaries.
Later, the US Treasury reported that the restrictions on Rosneft and Lukoil had already reduced Moscow's revenues and would likely lead to a long-term decline in Russian oil sales.
And recently, Bloomberg reported that US sanctions have begun to undermine Putin's influence in the Balkans.
