Russia writes off contractors' loans and lures citizens to war: British intelligence report

Russia writes off loans to contractors and lures citizens to war: British intelligence report Polina Buyanova

Russian authorities continue to recruit citizens to participate in the war against Ukraine. Now Russian servicemen can also have their credit debts written off.

This was reported by 24 Channel with reference to the UK Ministry of Defence. It is noted that these incentives are almost certainly intended to reduce the likelihood that Russia will have to declare a new wave of mobilization in the country.

How Russia Lures Citizens to War

At the end of November 2024, Russia adopted a law that allows writing off debt on loans for military personnel who signed a contract after December 1, 2024. The write-off will apply to loans of up to 10 million rubles (approximately $94,400). The new law will also apply to family members of Russian occupiers.

It is worth noting that this was an addition to the “Loan Repayment Holidays for Russian Military Personnel” program. According to the Russian opposition publication Mediazona, 411,000 applications for mortgage and personal loan repayments have been processed since October 2022.

Russia's financial incentives for new recruits are almost certainly aimed at ensuring there are enough replacements for their ever-growing losses. The total number of killed and wounded now stands at more than 760,000, compared to an average of 1,523 a day in November 2024, British intelligence noted.

The Defense Ministry says the write-off of loan payments is likely to increase financial pressure on Russian banks in 2025, in addition to pressure from high interest rates and sanctions.