[Event] Russian State Economic Policy, 2029

Due to rising tensions around the world, the ruling party in Russia announced the introduction of economic reforms to consolidated the Russian economy and reduce it soil dependence during a time of rapid economic change.

The state tax rate is to be transitioned from a relatively flat system, a relic of the Putin years, to a graduated system in which richer Russians will pay 1 percentage point more in 5 categories over the next several years, schedule as follows:

2029: $5,000,000/above annual income: 23% $1,000,000: 23% $250,000: 23% $100,000: 23%

2030: $5,000,000/above annual income: 28% $1,000,000: 26% $250,000: 24% $100,000: 23%

2030: $5,000,000/above annual income: 31% $1,000,000: 27%

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Further, the Duma announced sweeping legislative change sot the process of starting and registering businesses, which were essentially a modified copy of the Hong Kong system, involution a filing of a copy of the property rights, company registration, mandatory attached bank account, registration type, five directors with addresses to the state office with no need for a notary in order to gain a tax ID. Corporate taxes were set at a flat 23% in order to collect revenue off of foreign registrants.

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The most important section of the reform act, however, entailed the introduction of the Federation Banking Policy, which enabled the Central Bank of Russia to issue $300, 000,000 of note on account of low inflation in the Russian economy to purchase shares of 392 chains of local banks in the Russian Federation and consolidate them into Bank of the Russian Federation through a forced merger. Local brands and names have been maintained, but the move has injected new loan funds into the Russian economy and has given the Central Government and the Finance Ministry unprecedented authority in the control of economic policy. State-owned GazpromBank was consolidated under the new group and remains its largest asset.

Immediately, the sub-branches of the BoRF started to give large numbers of loans to the following corporations:

AvtoVaz

KamAZ

Sibur

Uralkali

Protek

Sverstal

Magnitogorsk Iron and Steel Works

Evraz

Each of which being a mid-sized industrial corporation in need of modernization. The low-interest loans are collateralized by the finance ministry and precede the demolition of a large numbers of old plants and the construction of large plants with modernized equipment, imitating the Cold War model of state direction of the Japanese economy. The Deputy Minister of Finance has announced the move's intention is to modernize Russia's surviving industrial sector and make it competitive with mid-level industrial output - such as machine parts and automobiles - of those of the West.