In this pool photograph distributed by the Russian state agency Sputnik, Russia’s President Vladimir Putin meets with military chiefs in Moscow on November 22, 2024. Agence France-Presse
MOSCOW — Russian President Vladimir Putin on Saturday signed a law that allows those who sign up to fight in Ukraine to write off unpaid debts worth almost $100,000, the government announced.
The new legislation will be a strong motivation for some to join up, experts said, as Russia seeks new ways to recruit fighters for the nearly three-year conflict grinding through troops.
Article continues after this advertisementThe new legislation will allow those who sign a one-year contract to fight in Ukraine after December 1 to free themselves of existing bad debts. It also covers their spouses.
FEATURED STORIES GLOBALNATION Even with access to new obesity drugs, some people don’t lose weight GLOBALNATION Laos government says 'profoundly saddened' by tourist deaths GLOBALNATION Storms bring chaos to Ireland, France, UKREAD: Putin to boost troop numbers to 1.5 million active soldiers
The law concerns debts where a court order for collection was issued and enforcement proceedings began before December 1, 2024.
Article continues after this advertisementThe total amount of unpaid debt that can be covered is 10 million rubles, around $96,000 at current rates.
Article continues after this advertisementParliament approved the bill earlier this month.
Article continues after this advertisementThe legislation will largely concern younger Russians of fighting age, since those in their 30s and younger are most likely to have loans.
Russia has extremely high interest rates for loans and many Russians have almost no cash savings, although the proportion of home owners is relatively high.
Article continues after this advertisementREAD: Putin says Russia will accomplish ‘all goals set’ in Ukraine
“Previously (for those fighting) there was only provision for taking repayment holidays on loans,” Sergei Krivenko of advocacy group Citizen Army Law told Vazhniye Istorii Telegram channel.
The new legislation applies to those who are conscripted for national service and those mobilized for the so-called “special military operation”, Krivenko said.
Conscripts cannot be sent to the front line but can choose to sign a contract to join the professional army and be sent to fight in Ukraine.
Russian authorities “are strengthening the motivation to sign a contract,” political analyst Georgy Bovt wrote on Telegram.
The legislation provides “another way to get rid of an unbearable burden of credit, at least for several hundred thousand people,” Bovt wrote.
Over 13 million Russians have three or more loans, according to a central bank report released last month covering the first two quarters. This was up 20 percent on the same period last year.
The average amount owed by those with three or more loans is 1.4 million rubles ($13,400 at current rates).
Many start with a bank loan and then apply for further loans from microfinance organizations.
Russians serving on the front line are already paid far more than the national average.
Subscribe to our daily newsletter
Ukraine also has legislation allowing those fighting to get preferential terms for loans and in some cases to write off debts.poneclub
READ NEXT Putin signs law letting Ukraine fighters write off bad debts Nato chief discusses ‘global security’ with Trump EDITORS' PICK Marcos guard tightened vs Sara slay plan 2020 vision? How to not lose faith in humanity in the 2020s UN members agree on $300B a year for poor countries in a compromise deal DSWD chief dismisses claims programs being used for politics 19-year-old arrested in shooting deaths of Fil-Am siblings inside burning home Sara Duterte’s kill remark vs Marcos is ‘active threat’ – Palace MOST READ Asean defense ministers renew push for code of conduct Finally, a ground for Sara impeachment? PNP to investigate VP Duterte’s ‘murder threat’ vs Marcos NDC chief resigns, plans return to private sector Follow @FMangosingINQ on Twitter --> View comments