Russian VTB Bank Rolls Out 2% Mortgage Program for Occupied Ukrainian Regions

Russia’s VTB Bank began accepting applications for a 2% subsidized mortgage program aimed at purchasing housing in the occupied regions of Ukraine, referred to by Russian authorities as the “special military operation (SVO) zone,” with the program, that includes down payment requirements, reported Russian media Kholod on October 30.

The mortgage program applies to properties in newly constructed buildings in the self-proclaimed “Luhansk and Donetsk People’s Republics” (LNR and DNR).

According to the program, people are offered to finance completed or in-progress properties for up to 30 years, with a down payment of just 10.1% of the property’s price. Under this program, loans can reach up to $61,7 thousand (6 million rubles).

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War in Ukraine

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The Russian bank has not specified which towns are included in the Russian occupied territories of Donetsk and Luhansk regions.

VTB’s regional head for “Novorossiya,” Viktor Ship, noted that the bank could extend this preferential mortgage program to other occupied areas in Ukraine, including Kherson and Zaporizhzhia, if residential construction begins in those areas.

This mortgage rate is reportedly VTB’s lowest, significantly undercutting other VTB mortgage options in Russia.

By comparison, a standard mortgage for a new property in Russia carries a 27.4% interest rate and requires a minimum down payment of 15.1%.

Earlier, a decommissioned military facility where Russian forces likely stored ammunition were hit in Luhansk.

In addition, in Russian-occupied regions of Ukraine, residents are facing property seizures, and are forced to re-register their properties under Russian law, often losing their homes in the process.