Putin signs law forgiving debt arrears for new Russian recruits for Ukraine war

reuters_tickers

MOSCOW (Reuters) – Russian President Vladimir Putin signed a law on Saturday on debt forgiveness for new army recruits signing up to fight in Ukraine, a Russian government website showed.

Agencies reported that the law provides for forgiveness of up to 10 million roubles ($95,835) of debt arrears for those signing contracts with the Defence Ministry to fight in Ukraine for at least a year, beginning on Dec. 1.

The law applies to all potential recruits who have had debt collection proceedings opened against them before Dec. 1.

Russia has bolstered military recruitment by offering increasingly large payouts, in some cases of many times the average salary, to those willing to fight in Ukraine.

The tactic has enabled the army to increase manpower in the conflict area, while avoiding another round of the general mobilisation that prompted a mass exodus from Russia in Sept. 2022.

Central bank figures have shown that Russians assuming increasing levels of consumer debt since the Kremlin ordered tens of thousands of troops into Ukraine in 2022, even as the central bank increased its key rate to 21% in October.

($1 = 104.3455 roubles)