Russia is moving to capture a larger share of this year’s commodity-price gains from metals and fertilizer producers as Moscow builds a tax package around persistent deficits and elevated defense spending.
The Finance Ministry proposed taxing certain mining and metallurgy companies at 30% of additional 2026 revenue attributable to higher global prices compared with a 2025 baseline. Gold miners would face a lower 20% rate.
The ministry identified precious metals, non-ferrous metals, fertilizers, and other resource products among the markets where higher prices generated additional rent income this year.
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The proposal forms part of Russia’s draft federal budget for 2027 through 2029. The Finance Ministry expects the deficit to remain at roughly 2% of GDP in each of the three years, rather than returning quickly toward balance.
Defense and security remain central to that spending plan. The ministry called their financing a “strategic priority” and said planned resources would cover weapons and military equipment, modernization of defense companies, military compensation, and support for service members’ families.
The broader tax package extends beyond commodities. Russia is proposing a 22% VAT on cross-border e-commerce purchases, payable through online platforms acting as tax agents.
The Finance Ministry also wants to bring investment and other “passive” personal income under Russia’s full 13% to 22% progressive income-tax scale. That would include dividends, bank interest, securities transactions, property sales, insurance-related income, and gifts.
The ministry estimates the change would affect about 4 million people, or no more than 6% of the population.
The new measures come as Russia’s 2026 deficit is now expected to reach about 3% of GDP, nearly double the original 1.6% target and above the 2.6% deficit recorded in 2025. Finance Minister Anton Siluanov has said additional borrowing will be required.
The budget and accompanying Tax Code amendments still require government and parliamentary approval.
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