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Putin signs law letting Ukraine fighters write off bad debts (www.rfi.fr)

submitted 3 days ago by [email protected] to c/globalnews

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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. The 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.

The law concerns debts where a court order for collection was issued and enforcement proceedings began before December 1, 2024. The total amount of unpaid debt that can be covered is 10 million rubles, around $96,000 at current rates.

The 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.

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).

Ukraine also has legislation allowing those fighting to get preferential terms for loans and in some cases to write off debts.

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