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I'm Maxim Polyakov, a correspondent for the online magazine '7x7'.

Since early July, several regions in Russia have seen rallies. Citizens protested against increased water and electricity rates and higher bus fares. In Zabaykalsky Krai, residents threatened the authorities with a hunger strike if water pipes were not repaired. Last winter, several major incidents in the region left hundreds of people without heating. It seemed that rallies in Russia in 2024 were impossible, but the citizens have proven otherwise. I must admit, however, that this new wave of protests is not as large as the ones organized by the murdered opposition leader Alexei Navalny and his allies across the country in the late 2010s. In this newsletter, I will cover the most recent rallies and suggest what their outcomes might look like.

Estimated reading time: 7 minutes

Increased Utility Rates

Since July 1, water and electricity prices have risen in all Russian regions. In some places, the increase was 2-3%, but in certain areas, it was much more significant, reaching 13-15%, which pushed residents to take to the streets. The rallies were organized by the Communist Party of the Russian Federation (CPRF). For many years, the CPRF has been loyal to the Kremlin, and the party’s deputies have supported Putin’s and the government’s initiatives. However, in certain regions, the communists have preserved a degree of independence and can still motivate people to protest. Here are the stories of three such rallies:

• Syktyvkar: The rally took place on July 6 in the local Hyde Park. Participants gathered in Michurinsky Park with posters, demanding Governor Vladimir Uyba be held accountable. Since July 1, water and electricity rates in the region have increased by 13.5%, gas rates by 11%, and garbage collection costs by 3%.
• Biysk: In Altai Krai, water and electricity prices have grown by 14.2%, exceeding almost all other regions. Residents came to a square with posters reading “Gifts from Putin and Tomenko [the head of Altai Krai]” and “Utility services are a noose around the people’s neck.” Rally participants were outraged by the poor performance of utility companies amid rising prices, as garbage bags littered the square.

Kaliningrad Oblast: Residents of this region launched a petition, which was endorsed by over 3,000 individuals. They demanded a halt to the increase in utility rates, similar to St. Petersburg, where the changes were postponed by a year. “Utility rates in Kaliningrad Oblast are higher, and salaries are lower. This increase will be a significant financial burden for the residents,” said Maxim Bulanov, a deputy of the regional Duma from the CPRF and the author of the petition.

Hunger Strike That Did Not Happen

Residents of Borzi, a small town in Zabaykalsky Krai, threatened officials with a hunger strike if funds were not allocated for repairing pipes. Last winter, residents endured several days in freezing apartments due to very low outside temperatures. The district head blamed the citizens, claiming they had drained hot water from the radiators and promising to "identify and punish the violators." Residents demanded an immediate allocation of almost 500,000 euros for pipe repairs.

The hunger strike was initiated by activist Marina Altayeva. As soon as she announced the protest, she was summoned to the police station. However, officials decided not to wait for the hunger strike and found the necessary funds. The Minister of Communal Services of Zabaykalsky Krai personally went to Borzi to oversee the repairs.

It is quite surprising that officials met the citizens’ demands and did not impose any sanctions. In Russia in 2024, this is an exception rather than a common practice.

Borrowing from Citizens

In this chapter, I will discuss how authorities across Russia are trying to plug holes in their budgets. Currently, most taxes from regional budgets are transferred to Moscow, except for personal income tax. Deputies from many regions have repeatedly complained about this system, highlighting that Moscow takes all the money and returns only leftovers in the form of subsidies and grants. In this way, the Kremlin tries to equalize the regions. There are territories rich in oil and natural gas, generating enormous tax revenues. At the same time, there are regions lacking natural resources and large industries, and Moscow prioritizes helping them.

However, there is not much money in regional Russian budgets, and the issue has become even more pressing over the last 2.5 years since the beginning of Russia’s full-scale invasion of Ukraine.

One region has decided to borrow money from its residents by issuing bonds. In Karelia, the governor threatened to confiscate apartments and houses if debts for water, heating, and electricity were not paid. The residents' total debt has exceeded 4% of the region’s budget.

Krasnoyarsk: The city authorities plan to issue "people’s ecological bonds," using the funds from their sale to plant trees in Krasnoyarsk. The first bond issue, totaling 100 million rubles, is scheduled for August. "If Krasnoyarsk residents invest in the municipality’s bonds, they will not only earn revenue but also participate in improving the city’s environment," asserted the City Hall. The administration described this business plan as "a modern trend in state and municipal borrowing," citing the experiences of Moscow, Kaliningrad, and Ulyanovsk regions. 

Karelia: Governor Artur Parfenchikov suggested confiscating and selling residents' apartments for unpaid utility bills. By 2024, the total utility debt of Karelia's residents had reached almost 3 billion rubles, primarily for heating, announced Viktor Rossypnov, the head of Karelia’s Ministry of Construction, during a regional government session. According to Rossypnov, some residents owe between 600,000 and 700,000 rubles. "If a person does not live in the apartment, let’s confiscate their property with bailiffs, sell it, and use part of the sum to cover the debts, because 3 billion is a very large amount of money," said Governor Parfenchikov. Last winter, residents of Karelia repeatedly complained about issues with utility services. In the town of Suoyarvi, central heating was not turned on in time due to repair work on the steam tunnels. Meanwhile, the republic’s authorities were helping prepare Zaporizhzhia, an occupied Ukrainian region, for winter. In Sortavala, several hundred people signed a petition against rising heating prices.

In Conclusion

Summer protests in Russian regions are quite small and are unlikely to lead to major changes. However, they reveal a trend where citizens are beginning to perceive the war in Ukraine, the consequences of sanctions, and the struggles of the Russian economy differently. If security forces do not suppress these protests, we can expect new rallies in the regions in the near future.

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