Assets seized in corruption cases will now be diverted into Russia’s pension fund as retirement ages are set to go up this year.
Lawmakers adopted the corrupt asset-seizure amendments which President Vladimir Putin signed into law last fall alongside unpopular hikes in Russians’ retirement ages that sparked nationwide protests.
“These funds [used to] disappear inside the federal budget,” the head of Russia’s state-owned Pension Fund Anton Drozdov said shortly after the changes became law. “[As of Jan. 1], they will definitely be allocated to pension payments.”
Russia’s Federal Treasury estimates that in 2019-2024 these funds will total 1.8 billion rubles ($25.8 million), reads an explanatory note to the legislation.
The ruling United Russia party had said it hoped to raise 1.2 billion rubles ($17.2 million) from the asset-forfeiture scheme by 2024. Based on Putin’s estimate that Russia needs to spend 20 billion rubles ($287.2 million) daily on pensions, the six-year bonus from confiscated dirty money will reportedly add 15 minutes to the national pension fund until it runs out.
The measure is part of a range of new laws that came into effect on Jan. 1, including an increase in value-added tax and concessions that seek to soften the effects of the retirement age hike.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
