Russian lawmakers on Wednesday approved in the first reading a bill which will raise the rate of value added tax (VAT) to finance the country's military expenses.

The legislation proposal got approved with 319 votes in favour, and 82 abstentions.

The bill would increase the VAT rate from 20 to 22% and would fund defense and security expenses, Russian Finance Minister Anton Siluanov said before the vote.

It would also lower the VAT threshold to include previously exempt small enterprises, despite concern from some lawmakers and taxpayers that this will harm business and spike inflation.

The military operation in Ukraine has drained resources and has placed a huge strain on the Russian economy.