Kremlin offers debt relief to recruit new soldiers
The Russian State Duma has approved a law allowing for the cancellation of debts up to 10 million rubles for participants in the war in Ukraine. This is the Kremlin's strategy for recruiting new soldiers.
9:57 AM EST, November 20, 2024
The Kremlin is seeking new soldiers to send to the front in Ukraine by offering debt forgiveness up to 10 million rubles. The Russian State Duma passed a special law concerning loans taken out before December 1, 2024, that are already subject to court or enforcement proceedings. This cancellation will cover participants in the war and their relatives, who sign a contract with the Russian Ministry of Defense after December 1, 2024.
According to the Federal Bailiff Service, from January to September 2024, creditors demanded repayment of 1.41 trillion rubles, marking a 34.2% increase compared to the previous year. During this period, 10.9 million new enforcement proceedings were initiated, an increase of 11.6% compared to 2023.
Russia needs thousands of soldiers, counts on debtors
Portal Verska reports that 90% of those signing contracts with the Ministry of Defense are individuals with financial problems. The Kremlin plans to attract 225,000 new soldiers for contract service over the next three years.
The salary for signing a contract is currently 400,000 rubles, following a decree by President Putin on July 31, 2024.
The war costs billions of rubles
In the first half of 2024, Moscow spent over 32 billion rubles on payments to new contractors, exceeding the budget planned for next year. This highlights the Kremlin's emphasis on recruiting new soldiers.
Next year, the Kremlin will allocate as much as 41% of its budget to defense and security. This exceeds the total amount spent on education, healthcare, social policy, and economic development combined. Interestingly, almost 30% of these funds will indirectly support military actions. The costs of the conflict in Ukraine continue to rise, slowly consuming profits generated in recent years.
These are the largest military expenditures in Russia's history. Never before has the state planned to allocate such enormous resources to military purposes. Moreover, just a year ago, a completely different scenario was predicted. According to the budget adopted last fall, defense spending in 2025 was expected to decrease to 8.5 trillion rubles. However, the escalating conflict in Ukraine is generating increasing costs.
Source: "The Moscow Times", WP News
