From bakeries to beauty shops, Russian businesses are feeling the pain from a new wartime tax policy

Associated Press (AP)EN 8 min read 75% complete by By DASHA LITVINOVAFebruary 23, 2026 at 08:23 AM

AI Summary

long article 8 min

A new wartime tax policy in Russia is impacting businesses ranging from bakeries to beauty shops. Effective this year, businesses with revenues exceeding 20 million rubles ($261,000) must pay at least a 6% tax on revenues and a 5% VAT. Business owners interviewed by the Associated Press report declining demand, increased costs from suppliers adjusting to the tax reform, and a significantly higher tax burden. The changes stem from tax reforms discussed publicly as early as December 2025. The policy is causing hardship for Russian businesses.

Key Entities & Roles

Key Player Opposition Context

St. Petersburg 40% Denis Maksimov 50% The Associated Press ×250% Moscow ×360% Mashenka bakery ×470% Vladimir Putin 70% Russia ×690%

Sentiment Analysis

Very Negative

Score: -0.60

Source Transparency

Source

Associated Press (AP)

Classification Confidence

90%

Geographic Perspective

Russia

This article was automatically classified using rule-based analysis.

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