What Awaits Russians in July: Utility Tariffs, Bank Transfers, Social Deposits

The upcoming July marks the height of summer, a month for rest and holidays. However, it also signifies the beginning of the second half of the year, and traditionally, this is when lawmakers introduce numerous new laws and initiatives. This July is no exception, bringing a significant number of crucial innovations for our fellow citizens.

These changes will affect virtually every resident of Russia – and that`s not an exaggeration. It`s hard to find citizens who don`t pay for utilities, make bank transfers, or use bank loans. The July innovations will also impact recipients of social benefits, those claiming inheritance, and those who need to appeal to court. All the details of the new legislative provisions are covered in this article.

Utility Tariff Increase

Starting in early July, in accordance with a government decree, Russia will see a planned increase in housing and utility tariffs. The average growth across the country will be 11.9%. Gas, electricity, water, and heating will become more expensive. Gas tariffs will increase by an average of 10.3%, and electricity by 12.6%. The indexation will affect all regions, but the level will vary depending on the maximum limits set for the subjects of the Russian Federation.

Commentary by Alexey Krichevsky, financial analyst:

— The main question for payers is exactly how much family spending on utility services will increase. It`s impossible to give a precise answer due to the wide disparity in incomes between the rich and poor, and between regions. But for households with the lowest income levels, this indexation could easily raise their total household budget expenses by a couple of percent, which is quite critical for them. It`s important to note that utility subsidies are available to households whose share of expenses for payment exceeds 22%. However, this is a legally fixed value, and it may differ in various regions of the Russian Federation. For example, in Moscow, it`s 10%. The entire procedure is carried out through any MFC center in the city, all necessary documents for submission are available on Gosuslugi, and approval takes no more than 2 weeks.

As for the impact of this tariff increase on utility infrastructure, I fear that nothing will change in the maintenance of utility networks. The maximum we can hope for is that the situations of winter 2024, when hundreds of thousands of people were left without heat, electricity, and hot water, will not repeat. But this depends not on tariff indexation, but on the actions of the Ministry of Construction and its regional structures, which should control local management companies and service providers.

Control Over Bank Transfers

From July 1st, changes to the Russian Tax Code will take effect, expanding control over bank operations. A new tax obligation arises if transfers to a bank card are classified as income. This includes, for example, receiving undeclared wages, rent payments, payments for goods or services without self-employment status, and regular large transfers from third parties. In these cases, the Federal Tax Service (FNS) has the right to request explanations and, if necessary, assess additional taxes. The updated rules will affect operations whose sources are not confirmed by official income. However, transfers as gifts, assistance to relatives, debt repayment, or shared expenses are not subject to tax control.

Commentary by Natalia Milchakova, lead analyst at Freedom Finance Global:

— The population in general, even disciplined taxpayers, will clearly not welcome this innovation. First of all, it will mean increased FNS control over the income of every citizen. At the same time, this innovation will not allow the shadow sector to be completely defeated. On the contrary: fearing additional control over bank accounts, small businesses operating in the shadow sector, as well as self-employed individuals providing services without registration, will simply increase cash circulation. However, banks will have more worries and costs, as they will have to exercise more control over transfers to individuals, and for this, they may need to hire new employees in security services, install special software… It may happen that banks, to be on the safe side, will block any transfers to individuals for large sums that arouse suspicion, which can create many additional problems for law-abiding citizens. Personal income tax collection could theoretically increase, but to a very small extent, so it is difficult to say whether the state can get big benefits from such an innovation, which looks not very well thought out.

Suspension of Bank Transfers

From July 1st, the Federal Service for Financial Monitoring will gain the authority to temporarily suspend private transfers to citizens` bank cards for a period of up to 10 days without a court decision. This measure is aimed at combating financial crimes. If law enforcement agencies confirm the suspicious operations, the blocking period can be extended to 30 days.

Commentary by Denis Astafiev, head of the fintech platform SharesPro:

— From July 1st, Rosfinmonitoring will be able to demand banks `freeze` any suspicious private transfer for up to 10 days without a court decision; and if law enforcement confirms the risks, the blocking will last up to 30 days. Formal warning to the recipient is not provided – the operation is suspended instantly, and the bank is obliged to notify the sender or recipient on the day of the block via mobile banking or SMS and inform them that the request has been sent to financial intelligence.

If a `stop` is put in place mistakenly, you should immediately contact the bank and provide supporting documents or explanations: a scan of the loan agreement, a check, a receipt, a screenshot of correspondence about a purchase… The bank forwards them to Rosfinmonitoring, and in the absence of confirmation of suspicion, the transfer will automatically go through after 10 days. The client has the right to appeal the refusal at the bank, and then through the Bank of Russia commission or in court, attaching copies of correspondence and documents.

Lawmakers emphasize that the measure is primarily aimed at combating `droppers` and cash-out schemes, not ordinary family transfers. It is unlikely that regular transfers to relatives or collections for gifts will fall under financial intelligence filters if the purpose of the payment is clearly indicated and the amounts do not look atypical for the participants of the transfer. Increased risk arises only with sharp surges in activity, multiple incoming payments from strangers, or transfers without explanations.

Social Deposits

From July 1st, banks will launch special social deposit accounts for recipients of support measures – i.e., for low-income Russians. The maximum amount for such a deposit will be 50 thousand rubles, and the interest rate is determined by each bank individually. Both new bank clients and those who have held funds with them for no more than 180 days will be able to open such a deposit.

Commentary by Alexey Krichevsky, financial analyst:

— You will be able to open a social deposit in any of the systemically important banks. Other banks will provide this opportunity to depositors by January 1, 2027. By and large, there is no tangible difference between a regular deposit and a social deposit. Despite the fact that a social deposit should be issued at the maximum rate of a specific bank and higher, due to the limited size of the deposit, this will be almost imperceptible. 1-2% of additional income is not a significant increase. And, frankly speaking, «deposits for the low-income» — even sounds a bit mocking. It should be understood that households with a low income level have places to spend 50 thousand rubles if they manage to save them — buy something for the home, pay off loans, send children on vacation. For many, this is preferable to «freezing» this money for many months in a bank — even at a sufficiently high interest rate.

Almost the only advantage of this deposit is that you can close it without losing accrued interest – the contract is concluded for a year. But, firstly, this option is already available in many major banks, and secondly, it would be more beneficial for low-income depositors if capitalization was carried out at least monthly. Then people would earn a little more through compound interest, and for banks, such an option would be a drop in the ocean of costs.

Credit Issuance Restrictions

From July 1st, new macroprudential limits are being introduced: banks will now be able to issue no more than 2% of mortgage loans with a down payment of less than 20% and a borrower`s debt burden exceeding 50%. For car loans with a high debt burden, a limit of no more than 20% of the total issuance volume will be set. These measures are intended to significantly complicate access to credit for citizens with high debt.

Commentary by Ivan Samoilenko, Managing Partner at B&C Agency:

— In the Russian banking system, work has been consistently carried out in recent years to ensure that banks approve loan applications from citizens with a high credit rating. Therefore, the share of people who already have loans and who repay more than 50% of their income to banks is constantly decreasing. This measure reinforces this trend; fewer citizens with unstable incomes and a bad credit history can apply for a new loan. This is done to avoid stimulating the growth of overdue debt and increasing the volume of problem loans for banks. Banks will take longer to review applications from citizens and will refuse more often.

People with a high debt burden should apply for loan refinancing to reduce the amount of monthly payments by increasing the loan term. It is also worth кардинально rethinking their approach to managing the family budget, trying not to increase debts, saving, and not making large purchases while there are obligations to banks. You can find additional ways to improve your financial situation. This could be finding a second job or side hustle, selling unnecessary property, and other steps.

Control Over Digital Ruble Operations

From July 1st, the regulation of digital ruble operations will be expanded. Federal law will extend «anti-money laundering» requirements to all digital currency transactions. Participants of the digital ruble platform will be obliged to provide information and documents to banks and the Central Bank upon request, necessary for assessing the risk of legalization of criminal proceeds and financing of terrorism. The platform operator will also be obliged to analyze the risks of suspicious operations.

Commentary by Andrey Loboda, economist:

— The innovation expands the «anti-money laundering» regulation of digital ruble operations. All participants of the platform will be obliged from July to provide documents for risk assessment and suspicious operations upon request. These requirements apply to both individuals and businesses. Stricter regulation becomes the basis for a more transparent circulation of the new form of national currency — digital. It also emphasizes the strategy of the Bank of Russia — gradual implementation of the digital ruble with a high level of oversight and integration into the current financial system. The digital ruble itself, by the way, will not be available to citizens before September 2026. Therefore, perhaps the innovation in «anti-money laundering» laws is somewhat premature.

Prohibition on Storing Personal Data Abroad

From July 1, 2025, a ban on storing personal data of Russian citizens abroad comes into force. Now, the entire cycle of working with personal data – from collection to deletion – must occur exclusively on the territory of the Russian Federation. It is prohibited to record, systematize, accumulate, store, update, and extract personal data of Russian citizens in databases located outside of Russia.

Commentary by Vladimir Krasnikov, head of IT direction at PRIX Club:

— The meaning of this innovation is that the entire cycle of working with personal data of Russians – from collection to deletion – must be conducted only on the territory of our country. Minister of Digital Development Maksut Shadaev recently directly stated that there are currently no visible conditions for the return of foreign IT companies, so some market players may simply cease servicing Russian accounts instead of expensive infrastructure relocation.

For users, this means possible access disruptions or reduced functionality where services do not manage to «relocate» – in the best case, a VPN will be needed, in the worst case, accounts will become inaccessible. Those who decide to stay will have to rent capacity in domestic data centers (DPCs): the market for such services is already estimated at 117 billion rubles, and operators warn of price increases. Hosting providers expect their services to rise by 5-10% (in some cases up to 15%) due to new infrastructure requirements, so a similar increase should also be factored into subscriptions for foreign online services if they choose localization instead of leaving.

Also:

New rules for appealing to court. In Russia, a new regulation for filing documents in administrative offense cases will come into force. Now, victims, accused persons, their representatives, and state bodies will be able to send applications and other procedural documents electronically. This will be possible through the Gosuslugi portal, regional websites, special online platforms determined by the Supreme Court or the Judicial Department, as well as through personal accounts on state bodies` and Bank of Russia websites. A reinforced qualified electronic signature may be required for submitting documents. In certain cases specified by law, a simple electronic signature may suffice.

New rules for entering into inheritance. From July 15th, a new law comes into force in Russia that simplifies the procedure for accepting inheritance for relatives of fallen participants of the special military operation (SVO) and persons who lived or were temporarily located in the SVO territories, if they died due to related circumstances. Their inheritance will now be opened from the date the death is recorded in official documents – an act of civil status.