Russia set for record utility tariff hike in 17 years

Russian households are set to face the largest increase in housing and utility tariffs in 17 years, with nationwide price adjustments taking effect from October 1, according to a government decree.

The sharpest increases in average tariffs will be recorded in the Stavropol region, where they are set to rise by 22%, followed by Dagestan at 19.7%. Tariffs will increase by 17.5% in the Tambov region and 17.2% in the Tyumen region.

In Moscow, housing and utility tariffs are due to rise by 15%, while St. Petersburg will see an increase of 14.6%.

Regional authorities will also be allowed to raise tariffs above the basic rates in individual municipalities. In the Perm region, for example, the standard indexation rate is set at 15%, but municipalities may apply an additional “deviation” of up to 14.9%.

In the Tver region, tariffs will be indexed by 13.7%, with a further increase of up to 9.9% permitted in some municipalities.

The widest potential increase will be in parts of the Stavropol region, where the basic 22% indexation can be supplemented by a 21.9% “deviation,” allowing tariffs to rise by almost 1.5 times in some municipalities.

By Tamilla Hasanova