0657GMT//Russia to start importing fuel through the Eurasian Economic Union; Kremlin cuts budget to propaganda channels; utilities costs to rise faster than expected
IMPORTING FUEL TO EASE CRISIS: The Kremlin-led Eurasian Economic Union on Tuesday cancelled import duties on car fuel, diesel, jet fuel and shipping fuel to allow Russia to start buying fuel from abroad to plug shortages. (COMMENT: The Kremlin uses the Eurasian Economic Union to dodge Western sanctions. By dropping import duties on fuel into the Eurasian Economic Union, it is preparing to buy in huge quantities of fuel to plug shortages. Analysts estimate that Ukrainian drones have knocked out around 20% of its refining capacity. This is an expensive 'fix' for the Kremlin, just as its budget deficit grows.)
PROPAGANDA BUDGET CUT: The Kremlin is cutting its budget for its core propaganda broadcasting stations, media reported. Most of its main propaganda stations, such as RT and VGTRK (which produces Russia-1 and Russia-24), will have their budget maintained for 2026 but will then see a cut of around a third in 2027. (COMMENT: Budget cuts are clearly beginning to hurt even core Kremlin operations. The Kremlin had previously ringfenced its propaganda channels, considering them to be beyond cuts.)
STATE TAKES OVER SOVIET FILM-MAKER: The Kremlin ordered the ownership of Lenfilm, one of Russia's most famous film studios, to be transferred to the city of St Petersburg to ensure that it makes more pro-war propaganda films. Olga Lyubimova, Russia's minister of culture, said that Lenfilm will focus on "patriotic and historical films". (COMMENT: Lenfilm is Russia's most famous and oldest film studio and has been considered at least partly outside the Kremlin's propaganda reach. Not any more. Western sanctions have bankrupted Russia's film production industry.)
PROPAGANDA PUSH IN OCCUPIED UKRAINE: The Russian Military Historical Society will receive 190m roubles ($2.3m) from the Russian government to organise "patriotic educational programmes" in occupied parts of Ukraine, the Kremlin has announced. The Russian Military Historical Society, which is headed by Vladimir Medinsky, has set up "studios" in the occupied areas of Ukraine to "lecture" people about the "truths" behind the war in Ukraine. (COMMENT: The Russian Military Historical Society is one of Putin's favourite projects. The focus on occupied areas of Ukraine shows that the Kremlin still feels it needs to boost indoctrination levels.)
MORE EXPENSIVE UTILITIES: The Russian government will increase prices for utilities at a faster rate than previously expected to raise more cash for its budget, Russian media reported. It said that prices for gas and electricity will rise by around 10% next year, 9% in 2027, and 7% in 2028. (COMMENT: Again, these price rises are greater than expected and are a reflection of the poor state of Russia's finances.)