Russia is facing a drastic demographic decline

Russia is facing a drastic demographic decline. Latest figures show that overall, the country's birth rate has halved in the last 15 years, while at the same time the death rate is increasing rapidly. It is now estimated that there will be 20 percent fewer people in the country by 2020.

With around 700,000 more deaths than births each year, the Russian government knows it must act fast to counter the problem. President Vladimir Putin has made solving the demographic dilemma a top priority of his final year in office.

For many, it comes down to a question of finance. As one Moscow student explains, families can be too expensive: "The problem is a financial one. Not many families are ready to pay so much when each child comes along. Everyone knows that having children can be very expensive."

The government's solution - women who have more than one child will qualify for a cash incentive of 7000 euros.

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