Before reaching a conclusion, analysts recalled the statement of the governor of the Nizhny Novgorod region, Gleb Nikitin, on December 23. He said that in 2025, the region will pay maternity capital in the amount of 1 million rubles (about 10 thousand dollars) for each child’s birth.
Nikitin clarified that the authorities of the Nizhny Novgorod region will allocate one million rubles for the first and second child from federal and regional funds and will allocate another million rubles for the third and fourth child exclusively from the regional budget.
According to ISW experts, Russian regional authorities are likely to continue expanding maternity payments as part of the Kremlin’s directive to address long-term demographic problems. However, the Russian government may find it difficult to pay large maternity capital payments over time, as the Russian economy is under constant strain from the war in Ukraine, as well as international sanctions and a growing labor shortage.
In addition, Russian state news agency RIA Novosti reported on December 24 that it had read a letter sent by the Central Bank of Russia in response to a request from Russian State Duma Deputy Denis Parfenov. In it, the central bank said it is “dangerous to cut the policy rate to stimulate demand when “demand already exceeds supply”.
The central bank also noted that the current shortage of labor, equipment and transport in Russia means that cheap loans will not immediately provide producers with additional resources, but will only increase competition for resources and raise prices.
Analysts recalled that Russia’s central bank raised its key interest rate to 21 percent in October 2024, and the bank’s head, Elvira Nabiullina, recently said the bank may raise it further.
Russian dictator Vladimir Putin, in turn, sought to portray the Russian economy as “stable and reliable” during a “Direct Line” on December 19, also accusing the Russian central bank and Nabiullina of mishandling interest rate hikes.
