Russia’s War Recruitment Cash Dries Up as St. Petersburg Slashes Military Bonuses Nearly Ninefold

Authorities in Russia’s second-largest city, St. Petersburg, have reduced one-time payments for new military recruits from 3.5 million rubles ($43,000) to 400,000 rubles ($4,900), marking the second reduction in two weeks as the city faces growing budget constraints.

According to The Moscow Times on November 3, citing local outlet Fontanka, the latest reduction brings the city’s recruitment incentive to its lowest level in recent months.

Under the revised terms, recruits signing contracts with Russia’s Defense Ministry receive approximately $4,900 from the city and another $4,900 from the federal government. An additional $7,400 may be available to drone operators, although recruitment officials said the payment was not guaranteed.

The reduction follows an earlier decision on October 18, when St. Petersburg authorities lowered the municipal bonus from approximately $43,000 to $12,300.

The cuts come as the city struggles to contain its budget deficit. Officials have already reduced planned spending on social programs and urban improvements by $860 million, targeting a deficit of $1.34 billion.

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The city is also considering eliminating approximately 15% of government and public-sector positions to reduce expenditures.

Similar reductions have been introduced elsewhere in Russia. In Mari El, recruitment bonuses fell from approximately $28,300 to $4,900, while Mordovia reduced payments from $36,900 to $9,800. Irkutsk and Novosibirsk regions also lowered their incentives.

According to The Moscow Times, Russian regional governments had accumulated combined budget deficits exceeding $1.65 billion by September 2026, partly reflecting the financial burden of military recruitment programs.

Earlier, Ukraine’s Foreign Intelligence Service reported that 65 Russian regions were preparing spending cuts between 2027 and 2029 as war-related costs and declining revenues strained local finances. Their combined budget deficit is projected to reach approximately $10.5 billion in 2027, forcing reductions in infrastructure and investment programs.

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