8/29/2018, 1:01 PM (Source: TeleTrader)
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Putin softens Russia's pension system reform

Russian President Vladimir Putin stated on Wednesday that he will soften Russia's harsh pension reform plans that have sparked an outrage among Russian citizens and damaged his ratings. Speaking in a televised address, Putin watered down the original proposal which would raise the retirement age for Russian women from 55 to 63 and lift the age limit for men by 5 years, to 65. While keeping the original proposal regarding men, Putin offered to raise the limit for women by only five years, to 60.

"The law proposes that the pension age for women be raised by 8 years while the pension age for men be raised by 5 years. That’s of course not going to work. That’s not right," Putin said. Still, the president defended the decision to raise the retirement age limit in principle, arguing that Russia's pension system is seriously strained due to the country's demographic challenges and the shrinking of the working age population. However, he also promised to add annual increases to the proposed bill, which would lift pension levels by 40% by the time Putin ends his term in 2024.

After suffering a decline immediately after Putin's remarks, the US dollar gained strength against the Russia ruble, adding 0.42% at 12:58 pm CET to sell for 68.0230 rubles. At the same time, the euro remained unchanged versus the Russian currency, selling for 79.3670 rubles.

Breaking the News / FH