We cannot but repeat: Russia is bound to reproduce the economy of the late Soviet Union

However, the government relies on the conscientiousness of citizens to voluntarily return a portion of their income. In the current circumstances, membership fees have been replaced by mandatory military assistance fees, constantly reported by state employees and workers in state-owned enterprises. Under the “voluntary-obligatory” scheme, they are required to contribute hundreds and thousands of rubles per month. These payments result in negative wage growth, but they do not have any impact on Rosstat's calculations.

Another traditional Soviet method of extracting money from the population without formally reducing wages was through government loans. Throughout the history of the USSR, a total of 60 different loan issues were introduced, but only a few managed to generate returns. Payments were often deferred, converted, and not indexed, despite currency devaluations and other economic challenges. Back in 1959, Nikita Khrushchev said in one his speeches: “Millions of people in the Soviet Union willingly agreed to defer payments on their old government loans for extended periods of 20-25 years. This remarkable fact showcases the emergence of unique character traits and moral qualities within our population, qualities that were deemed unimaginable under an exploitative [capitalist] system.”

Amid deep skepticism among Russians who were wary of lending to the government, it was not until 2017 that the government decided to reintroduce government bonds to the citizens. These government bonds, known as OFZs (federal loan bonds), were presented as a market product, offering the possibility of selling them to agent banks after one year along with accrued coupon income. Yet, since the beginning of 2023, the authorities have introduced three more questionable projects.

The first project involved zero-coupon federal loan bonds, a concept being developed by the Ministry of Finance and the Central Bank. These bonds are issued below their face value and redeemed at par, with the income being determined by market interest rate dynamics. The target audience for these bonds is people with low incomes, including those with pension savings who could potentially invest in them. Essentially, these loans can be profitable in the case of sustained economic growth, but if economic problems arise, buyers could risk losing their savings. The second idea proposed “patriotic” government bonds, reminiscent of the ones issued in the USSR after the Great Patriotic War, with repayment being deferred by the Soviet authorities for 20 years.

The third innovation, which is the most though-out, involves long-term savings and can be seen as a pension system reform, despite the government's attempt to distance itself from such comparisons. This initiative revolves around entering into a contract with a non-state pension fund (NPF) for a minimum of 15 years, with payments starting either after this period or when a man reaches the age of 60, and a woman reaches 55 years. Withdrawals without any loss of income will only be allowed in specific life situations, such as expensive medical treatment. Otherwise, even with a target inflation rate of four percent over ten years, depositors will only receive two-thirds of the requested amount.