Support The Moscow Times!

Confiscated Dirty Money to Be Added to Russia's Pension Fund

Anton Novoderezhkin / TASS

Assets seized in corruption cases will now be diverted into Russia’s pension fund as retirement ages are set to go up this year.

Lawmakers adopted the corrupt asset-seizure amendments which President Vladimir Putin signed into law last fall alongside unpopular hikes in Russians’ retirement ages that sparked nationwide protests.

“These funds [used to] disappear inside the federal budget,” the head of Russia’s state-owned Pension Fund Anton Drozdov said shortly after the changes became law. “[As of Jan. 1], they will definitely be allocated to pension payments.”

Russia’s Federal Treasury estimates that in 2019-2024 these funds will total 1.8 billion rubles ($25.8 million), reads an explanatory note to the legislation.

The ruling United Russia party had said it hoped to raise 1.2 billion rubles ($17.2 million) from the asset-forfeiture scheme by 2024. Based on Putin’s estimate that Russia needs to spend 20 billion rubles ($287.2 million) daily on pensions, the six-year bonus from confiscated dirty money will reportedly add 15 minutes to the national pension fund until it runs out.

The measure is part of a range of new laws that came into effect on Jan. 1, including an increase in value-added tax and concessions that seek to soften the effects of the retirement age hike.

Read more

The need for honest and objective information on Russia is more relevant now than ever before!

To keep our newsroom in Moscow running, we need your support.