MOSCOW

Under a new decree from Russian President Vladimir Putin, the country's value-added tax (VAT) rate will be raised from 20% to 22% with the New Year.

Under the decree, published in the country's legal information system on Friday, the rate will rise as of Jan. 1, though it will remain at 10% for some socially important products.

According to Russia’s Finance Ministry, the country's budget deficit reached 4.2 trillion rubles (about $52 billion) in the first 10 months of the year due to higher spending.

Spending in Russia has increased significantly in recent years, particularly due to defense expenditures.

Sanctions targeting the Russian energy sector have also caused the country to lose access to the European oil and natural gas market.