Putin Signs Law Forgiving Debts for Recruits Fighting in Ukraine

Russian President Vladimir Putin has signed a new law offering debt forgiveness to recruits who join the military effort in Ukraine.

Effective from 1 December, the legislation cancels up to 10 million roubles (approximately $95,835) in debt arrears for individuals signing contracts with the Defence Ministry to serve for at least one year. 

The law specifically targets those already facing debt collection proceedings prior to December, underscoring Russia’s ongoing push to boost military manpower without resorting to another round of mass mobilisation. 

Over the past year, Moscow has sought to entice recruits with financial incentives, offering large payouts that significantly exceed the average salary in many regions. This strategy has bolstered troop numbers in Ukraine while avoiding the backlash triggered by the partial mobilisation in September 2022, which saw thousands of Russians flee the country. 

The policy coincides with rising consumer debt levels in Russia, as citizens face increasing financial pressures amidst elevated interest rates. The Central Bank recently raised its key rate to 21% in October, making debt forgiveness a potentially attractive incentive for recruits. 

Analysts suggest that such measures highlight the Kremlin’s prioritisation of sustaining its military efforts in Ukraine, even as economic strains persist domestically.

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