The Kremlin has organised a series of closed-door meetings with senior officials and state media to shape a propaganda narrative regarding the upcoming tax increases. The main goal is to shift responsibility away from Russian leader Vladimir Putin and blame Western countries for economic difficulties.

Source: The Financial Times

Details: The Financial Times said at least one of the meetings included Sergei Kiriyenko, First Deputy Chief of Staff of the Presidential Administration of Russia. The main topic of discussion was crafting a propaganda narrative to justify the planned tax rise in Russia, including increasing VAT from 20% to 22% from January 2026.

The VAT increase contradicts Putin's promise not to raise taxes until 2030. For this reason, sources told the Financial Times that the Kremlin is seeking to run a large-scale propaganda campaign to minimise public discontent and shift the blame onto the West.

During a meeting, state-owned media representatives were given a set of instructions. A document seen by the FT includes a clear recommendation to explain the tax increase as hostile actions by the West, which is "not interested in a peaceful settlement" of the war in Ukraine.

The media outlets were suggested to use several phrases, including "Your money or your life?" and "Nothing matters more than security". Propagandists were also advised to avoid any mention of Putin in news reports about VAT and to emphasise the "positive" aspects of other budget changes, such as the increase in gambling taxes.

The Kremlin urges the media to avoid making the budget the main news topic, to prepare for an "information attack" against the VAT rise and to focus attention on the need to increase defence spending for a "peaceful life".

The recommendations also state that Russian media outlets should widely cover infrastructure investments – from new schools to hospitals – to create an impression of stability and development.

Separately, a narrative is suggested in which the West is depicted as supporting the continuation of the war and the deterioration of social standards for its citizens, whereas Russia, by contrast, does not "reduce support for families" and is only forced to raise VAT.

Meetings with loyal media outlets in the Kremlin are not unusual, nor are the recommendations on how to handle sensitive topics, sources who have attended such sessions for years told the FT. But in this case, one participant said the meeting was just part of a broader series of discussions.

"They are really concerned about not stirring things up and amplifying the positive," the source added.

Quote: "Resorting to fiscal decisions so unpopular that they required a separate propaganda campaign to head off dissent suggests the Kremlin's economic room for manoeuvre is shrinking.

That marks a stark contrast with the early years of the war when record revenues from oil and gas and strong economic growth allowed Russia to fund its military campaign in Ukraine without visible sacrifices at home."

"Lower oil prices and tighter sanctions on Russian crude have driven a drop in energy revenues, forcing Moscow to rely more on other income."

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