Over 50 % in Five Years: Housing and Communal Services Tariffs Are Becoming a New Tax for the rf’s Population

russia’s government has approved the parameters for indexing housing and communal services tariffs for 2026, providing for a double increase – a symbolic one in January and a significant one in October, immediately after the elections to the state duma. The total annual increase will be 13 % – the maximum since the beginning of the full-scale war. In every sixth region, tariffs will increase by 15 % or more.

From January 1, all subjects of the rf may increase tariffs by a uniform 1.7 %. From October, regional limits with an average value of 11.1 % will apply, but the federal government has allowed local authorities to exceed the set limits if necessary. The last comparable level of indexation was recorded only in 2022, when tariffs were increased by more than 13.3 %.

Despite the 2023 moratorium, the total increase from 2022 to October 2025 exceeded 40 %. After the 2026 indexation, the total increase in tariffs over five years of full-scale war against Ukraine will exceed 50 %. The biggest increases are in hot water (44.4 %), heating (44 %), cold water and sewage (42.5 %). Tariffs for rubbish collection have risen by 39.3 %, for electricity – by 37 %, and for gas – by 34 %.

The highest indexation rates for 2026 have been set for Stavropol (22 %), Dagestan (19.7 %), certain regions of Central russia and Siberia, and the North Caucasus. In moscow and a number of other regions, the increase will be 15 %. In most of those regions, tariffs have been increasing at a faster rate than the national average since the very beginning of the war.

The kremlin’s official statements about linking tariffs to inflation do not correspond to the current dynamics: with inflation at 7 % in 2025, tariffs have already increased by 12.7 %, having exceeded the limit set by the government. Given that housing and utility costs account for about 10 % of russians’ consumer basket, a new wave of sharp indexation will increase inflationary pressure and hit households even harder, effectively shifting the state’s financial risks onto them.