Starting July 1, 2025, utility tariffs in Russia will increase by an average of 11.9% nationwide. This follows previous increases of 9.8% last year and 8.1% in 2023.

Gas tariffs are set to rise by an average of 10.3%, while electricity tariffs will increase by 12.6%. These changes are expected to impact household budgets and potentially lead to increased prices for goods and services.

The government has approved maximum indices for regional tariff increases, allowing for deviations in individual municipalities. This means that some regions may experience significantly higher increases than the national average.

The largest increases are anticipated in certain municipalities within Arkhangelsk Oblast (plus 24.8%), Mordovia and Chelyabinsk Oblast (plus 22.8%), and Dagestan and Tatarstan (plus 22.3%). In Moscow, utility fees will increase by an average of 15%.

Alexander Yakubovsky, a member of the State Duma Committee on Construction and Housing and Communal Services, stated that the tariff indexation is necessary for modernizing the aging communal infrastructure. However, experts are skeptical about whether the increased tariffs will lead to improved utility services.

Konstantin Krokhin, a member of the Chamber of Commerce and Industry of Russia’s Housing and Communal Services Committee, claims that tariff increases have never been a reliable source of infrastructure investment, emphasizing that budgetary funds have historically been the primary source. He suggests that the revenue generated from these tariffs will be insufficient for substantial investment and may be mismanaged. He also points out that additional costs are being charged to residents for general household needs.

Svetlana Razvorotneva, State Duma deputy, deputy chairman of the Duma Committee on Housing Policy and Housing and Communal Services, advocates for restructuring tariff regulation. She suggests setting specific tariffs for each enterprise based on audits, investment programs, and target indicators, rather than implementing a uniform increase across the country. She suggests many of these enterprises are unprofitable and the population should not be responsible for covering the costs of inefficient utility services.