Russian investigators crack suspected crime ring behind 1 trillion rouble tax fraud

[MOSCOW] Russian investigators said they broke up an organised-crime group in Moscow that was responsible for more than one trillion roubles (S$17 billion) in tax losses to the state Budget, which is already strained by a widening deficit.

The group had created more than 4,000 fictitious and legal entities since 2023, in addition to selling fake invoices to nearly 40,000 organisations, the Investigative Committee of the Russian Federation said on Wednesday (Apr 15).

The information in the invoices was then reflected in tax reporting, it added.

The scale of the alleged fraud emerged at a time when Russia’s government was seeking ways to plug the Budget deficit, with the wartime economy under increasing strain.

This prompted it to resort to unpopular measures – such as raising the value-added tax from the start of 2026.

In the first quarter of 2026, the deficit reached 4.6 trillion roubles – above the government’s declared target of 3.8 trillion roubles for the full year.

SEE ALSO

In Russia, many restaurants and cafes close as consumption stalls amid major slowdown

China ready to cooperate with Russia to ease Middle East tension, foreign minister says

Iran war to double Russia’s main oil revenue to 700 billion roubles in April

Asean Intelligence

Get insights into businesses across South-east Asia

Get the free report

The alleged perpetrators of the plot had previously been convicted of economic crimes and were detained, Russia’s Federal Security Service said in a separate statement.

The agency added that it would identify the perpetrators, as well as those that benefited from the group’s activities. BLOOMBERG