Key facts
- Russia's parliamentary election is scheduled for September 18-20.
- The election is the first since Russia launched its full-scale war in Ukraine in February 2022.
- The ruling United Russia party is expected to retain its dominance of the 450-seat Duma.
- The election is being held in Crimea and Russian-controlled parts of Ukraine.
Russians are facing a range of daily economic challenges, including high inflation, borrowing costs, and labor shortages, as the country prepares for parliamentary elections from September 18-20. The vote is the first since Russia launched its full-scale war in Ukraine in February 2022, and the ruling United Russia party is widely expected to retain its dominance of the 450-seat State Duma.
Despite the picturesque setting of Yaroslavl, a city 250 km northeast of Moscow, locals are grappling with economic stagnation. Business owners report difficulties finding workers, with some attributing the labor shortage to mass army recruitment and heavy losses in the conflict, while others link it to declining fertility rates. Pensioners are struggling to make ends meet on their pensions, with rising prices for essentials impacting purchasing power.
The government forecasts economic growth of 0.6% for the full year, a slowdown from previous years, with forecasts through 2029 also revised downward. Inflation remains above 6%, forcing the central bank to maintain high interest rates, making borrowing punitive for businesses and households. Recent tax hikes, introduced to compensate for growing military expenditure, are also a point of concern for businesses.
Ukrainian drone attacks have also targeted economic sectors such as oil refining, retail, and e-commerce, leading to queues for fuel, increased inflation, and disruptions for small businesses. The impact of these attacks is visible even in industrial areas, with security measures in place at refineries and residents dealing with damage from downed drones.