Russia unveils €390 billion plan to overhaul its economy

Russian President Vladimir Putin on February 6, 2019.
Russian President Vladimir Putin on February 6, 2019. Copyright Alexander Zemlianichenko/Pool via REUTERS
By Naira Davlashyan & Alice Tidey
Share this articleComments
Share this articleClose Button

The money will be shared between 13 so-called National Projects which include increasing the fertility rate and reducing air pollution in cities.


The Russian government unveiled on Monday a €390 billion plan to overhaul its economy by 2024, at the end of what should be President Vladimir Putin's last term in office.

The investment programme, which features 13 so-called National Projects, follows the "May Decrees" signed by Putin after his re-election last year, in which he pledged to cut poverty in half and significantly boost life expectancy.

Where is the money going?

A quarter of the money (6.3 trillion rubles/€85.5 billion) has been earmarked to revamp the country's core infrastructure. Roads and car safety will be the second biggest expenditure (4.78 trillion rubles/€64.4 billion), with ecology rounding up the top three (4.04 trillion rubles/€54.5 billion).

What are some of the goals?

Below are some of the biggest goals to be reached by 2024 outlined in the investment programme:

  • Digital economy: Increase domestic spending in the sector to three times the 2017 level; ensure at least 90% of softwares used by government institutions and 70% by state-run companies is Russian-made.

  • Education: Russia to break into the world's 10 leading countries for education.

  • Demography: Increase the fertility rate to 1.7 per woman from an expected 1.63 in 2019.

  • Ecology: Reduce the level of air pollution in large industrial centres, including a decrease of at least 20% of total pollutant emissions to the air in the most polluted cities.

  • Science: Country to become one of the top five destinations for research and development; enhance Russia's attractiveness to "leading foreign scientists" and "young promising researchers."

  • Exports: Increase export volume of non-energy goods to $250 billion per year from an expected $160 billion in 2019 which represents a 64% increase.

How it will be financed?

Just over half of the money will come from the federal budget, according to the report. A further 5 trillion rubles will be paid by regions, while 7.5 trillion rubles will come from "extrabudgetary sources."

Last August, ahead of the expensive investment programme, Russia's government increased the country's value-added tax (VAT) by from 18% to 20% which came into effect on January 1.

Prime Minister Dmitry Medvedev announced in December that interim results for the investment programme will be published annually.

Share this articleComments

You might also like

Pompeo kicks off Central Europe tour amid concerns over Russia, China engagement

Russian islands declare emergency after polar bear 'invasion'

Exclusive: Russia trying to meddle in Balkan countries joining NATO, Jens Stoltenberg tells Euronews