Russian Pensioners Pay for the War in Ukraine

In Russia, the payment of social benefits is increasingly problematic, and beneficiaries may forget about pension recalculations despite rapidly rising inflation.

The armed attack on Ukraine has led the US and the European Union to impose economic sanctions on the Russian economy. It is already clear that they are very severe and will lead Russia into recession. Analysts predict that the GDP of Russia will fall by 10% this year, which would be the biggest recession since 1994.

Although the Central Bank of Russia was preparing for war (it was expecting Western sanctions) and even had accumulated reserves of 680 million US dollars, half of them was frozen in Western banks because of sanctions. The sanctions have also stopped many Western companies from buying Russian oil and sometimes even gas. All of this means that the Russian budget will receive considerably less revenue.

The sanctions have also led to a sharp fall in the value of the rouble and a sharp rise in inflation.

After all, war costs money. It is clear that the Russian authorities are desperately looking for additional money.

The Ukrainian media report that the weakest social layers of the Russian society, including pensioners, will contribute to the war in Ukraine, as they will not receive recalculated benefits of all types, i.e. despite the high inflation their pensions will not be increased.

The Ukrainian portal Echo Media writes that in the past, Russian pensioners used to ask employees of the pension fund of the Russian Federation why their pensions were so low or why they were not recalculated and received the following replies:

“They were calculated by the software”;

“There are unconfirmed periods of professional practice”;

“Everyone gets this pension”.

But now pensioners have started to hear a new shocking answer about their pension: ‘The Pension Fund will not recalculate pensions”.

According to the portal, pensioners who have received such a reply and have decided to defend their rights to the end, heard from the Fund that they had to submit additional documents, which are almost impossible to obtain.

Under legislation of Russia, the Pension Fund has the right to demand from the pensioner any document it deems necessary to substantiate the legitimacy of the payment of benefits.

This is what prevents pensioners from making a fuss and demanding an increase in their benefits, despite the still rampant inflation related to the war in Ukraine. According to the authorities, their money now is needed more for continuation of the war rather than their needs.

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Jacek. J. Komar

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Autorius: Voras Online