Economics
Wealth Gap Widens as Pandemic Hits Russia’s Poorest Regions Hard
- Governments told to increase debt to pay for rising costs
- Workers in Moscow earn four times more than in poorest regions
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The coronavirus pandemic is set to widen the gulf between the richest and poorest parts of Russia as the government pushes the country’s far-flung regions to fend more for themselves.
The federal authorities are pushing regional governments to borrow more to help pay for rising health care and other social costs during the pandemic. Regions will increase their net borrowing by 400 billion rubles ($5.3 billion) next year, compared with almost zero in 2020, according to estimates from NKR, Russia’s national credit ratings agency. Moscow will borrow a similar amount on its own.