Russia Offers Debt Cancellation of Up to $100 Thousand to Those Enlisting for War Against Ukraine

The Russian State Duma  has passed a law in its second and third readings that allows for the cancellation of up to 10 million rubles (around $100 thousand) in credit debt for individuals who sign up to fight in the war against Ukraine.

The law applies to those who sign contracts starting December 1, 2024. Initially, the legislation proposed waiving the enforcement fee, which accounts for 7% of the debt or seized property. However, amendments introduced before the second reading also included the cancellation of overdue loans.

According to the law, the debt eligible for cancellation must exist before the contract is signed. As of December 1, there must either be an open enforcement proceeding against the debtor or a court ruling ordering the debt repayment.

The law also extends the duration of loan repayment holidays from 30 to 180 days after the contract ends or participation in the war ceases. However, applications for these benefits must be submitted by December 31, 2024.

These provisions will also apply to the spouses of individuals who sign contracts with the Russian Ministry of Defense.

On November 13, Russian leader Vladimir Putin signed a decree altering the compensation structure for Russian military personnel injured in the war with Ukraine. According to the decree, payouts for “light injuries” and “other minor injuries” will be reduced.