Deep in debt? Putin offers Russians a way out — enlist for Ukraine war

Russian President Vladimir Putin has signed a law forgiving up to 10 million roubles (or roughly US$ 140,000) in debt for new military recruits fighting in Ukraine, as the Kremlin intensifies efforts to sustain troop levels more than four years into the war.

The decree, published by the Kremlin on May 25th, applies to Russian citizens who sign contracts with the Defense Ministry from May 1st onward and commit to at least one year of military service. Spouses of recruits are also eligible for debt relief if collection proceedings against them were already underway before that date.

The measure marks the latest expansion of financial incentives offered by the Russian government to attract volunteers for its war effort in Ukraine. Since the invasion began in February 2022, the Kremlin has relied heavily on lucrative enlistment packages, regional bonuses, and social benefits to replenish military ranks while avoiding another politically risky nationwide mobilization.

Under the new law, debts eligible for cancellation include loans that had already entered formal legal recovery proceedings before recruits signed military contracts. Per a Russian real estate database, the maximum write-off amount, which, as stated earlier, is 10 million roubles, roughly equals the price of a 35 square metre studio-type apartment in Moscow.

The Kremlin has steadily broadened support measures for soldiers and their families as the war drags on and casualty figures continue to mount. These measures include substantial signing bonuses, higher salaries, preferential university admissions, and mortgage subsidies.

In addition to forgiving the debts of the new military recruits and their spouses, President Putin also signed another decree, extending rental rights for state-owned land indefinitely for soldiers serving in Ukraine.

The latest debt relief policy follows earlier legislation adopted in late 2024 that similarly forgave debt arrears for recruits joining the military. That earlier law covered debts of up to 10 million roubles for soldiers signing one-year contracts beginning in December 2024.

Following the partial mobilization announced in September 2022, hundreds of thousands of Russians reportedly left the country to avoid conscription, creating political sensitivities around any further large-scale draft measures.

Therefore, it appears, the Kremlin has since attempted to maintain troop levels primarily through financial inducements tied to aggressive contract recruitment campaigns backed by regional authorities, rather than compulsory mobilization. In some Russian regions, enlistment bonuses now exceed several times the national average annual salary.

Also, as has been covered previously by Unraavelling Geopolitics, Russia’s economy is facing mounting pressure from inflation, labor shortages, and high consumer debt levels, caused by wartime mobilization and defense spending. 

So, offering debt cancellation to recruits may appeal particularly to financially vulnerable citizens struggling with loan repayments and enforcement actions, thereby effectively tying the economic hardship to military service by creating incentives for indebted Russians to enlist.

Tanmay Kadam is a geopolitical observer based in India. He has experience working as a Defense and International Affairs journalist for EurAsian Times. He can be contacted at tanmaykadam700@gmail.com.