Russia to raise utility rates starting July 1, with hikes nearing 40 percent in some cities

Starting July 1, Russia will implement a scheduled increase in utility and municipal service rates, in line with a government directive approved in November 2024, according to the website Garant.ru.

In line with the directive, the cost of utilities and municipal services will rise by between 8.6 and 21.1 percent, depending on the region. Rates in Moscow and St. Petersburg will increase by 15 percent, while the Moscow region will see a 13 percent hike. Local authorities have the final say on how much rates go up. As a rule, they must stay within the limits set by the federal government, though some exceptions are allowed.

As a result, rate hikes will vary widely. In Izhevsk, for instance, prices will rise by 38 percent — even though most municipalities in the Udmurt Republic will see only a 15 percent increase. In Omsk, rates will climb by nearly 40 percent.

On average, tariffs across Russia are expected to rise by 11.9 percent this year. That compares to increases of 9.8 percent in 2024 and 8.1 percent in 2023, according to RBC. The Construction Ministry said the indexation reflects rising resource costs and the need to upgrade utility infrastructure.