Russian President Vladimir Putin has signed legislation granting debt forgiveness to individuals enlisting to fight in Ukraine, according to an announcement on a government website on Saturday.
The new law, which comes into effect on December 1, allows for the cancellation of up to 10 million roubles (approximately $95,835) in debt for recruits who sign contracts with the Defence Ministry to serve in the conflict for at least one year. The measure applies to those with debt collection proceedings initiated against them before December 1.
This move is part of a broader strategy to boost military recruitment by offering lucrative financial incentives, including payouts significantly exceeding the average salary, to encourage enlistment. The approach has helped bolster troop numbers in Ukraine while avoiding another large-scale mobilization, like the one in September 2022 that triggered a mass exodus of Russian citizens.
Recent data from Russia’s central bank highlights a rise in consumer debt levels since the start of the conflict in early 2022, despite efforts to control inflation through higher interest rates, which peaked at 21% in October.
The debt relief policy underscores the Kremlin’s continued focus on maintaining manpower for the protracted conflict while addressing the financial burdens faced by many potential recruits.