As war strains economy, Russia faces hard choices between guns and butter

After two years of robust growth fuelled by military spending on the war in Ukraine, Russia’s economy is slowing. Oil revenues are down, the budget deficit is up and defence spending has levelled off.
The Kremlin needs money to keep its finances steady – and it is clear where President Vladimir Putin intends to get it: at the cash register, from ordinary people and small businesses.
An increase in value-added tax to 22 per cent from 20 per cent is expected to add as much as 1 trillion roubles…