Russia to hike electricity prices to fund drone defense

The Russian government is planning a significant increase in electricity prices for households to fund drone defense systems. According to a three-year forecast from the Ministry of Economic Development, electricity tariffs are expected to rise by 14.4% in 2027, 12.1% in 2028, and 10.1% in 2029, resulting in a total increase of 41.1% over the three-year period.

This proposal follows a recommendation from the Energy Producers Council, which represents 90% of the country's installed capacity, to include drone defense costs within electricity tariffs to improve sector security and recovery. This projected increase is the highest since 2009, when prices rose by 25% due to subsidy reforms.

Beyond electricity, total housing and utility payments are projected to rise by 40.9% over the next three years. Other anticipated increases include gas prices by 26.8%, heating by 27.2%, water supply by 25.4%, and sewage by 24% during the same period.