Russian President Vladimir Putin has called on the government to raise pensions and benefit payments as well as increase the salaries of state employees to limit the economic fallout from the war in Ukraine.
These should be adjusted according to the rate of inflation - currently 17.5% - Putin said in a government session held via videolink.
Putin instructed the government to pump fresh money into the economy to boost consumption. "It is extremely important now to support domestic demand, to prevent excessive contraction," he said.
Following Russia's invasion of Ukraine on February 24, Western countries imposed unprecedented economic sanctions on Moscow. According to World Bank estimates, Russia's gross domestic product will shrink 11.2% this year, which would be the sharpest drop since 1994.
Unemployment and inflation will rise significantly in 2022, according to economic experts. The inflation rate is expected to reach around 20%.
