Economics
Putin Wants Big Business to Spend $120 Billion to Revive Economy
- After shelving plan for tax hike, Kremlin wants firms to spend
- Government aims to raise investment to 25 percent of GDP
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The Kremlin is leaning on Russia’s oligarchs to spend $120 billion on new investments by the end of Vladimir Putin’s term after shelving plans to hike taxes on big business.
That’s an increase of 15-20 percent and part of the Russian leader’s plan to take overall investment to a quarter of gross domestic product -- the highest level since the Soviet era. If the Kremlin succeeds, it could also leave less money for shareholders because the bulk of capital spending in companies is funded from profits.