Putin Forgives Debts to Bolster Army in Ukraine Conflict

Russian President Vladimir Putin has signed a new law offering debt forgiveness to new army recruits joining the fight in Ukraine. The law cancels up to 10 million roubles in debt for those signing a contract with the Defence Ministry, effective from December 1.

In a strategic move to enhance Russia's military capacity in Ukraine, President Vladimir Putin enacted a law to forgive debts for new recruits. The legislation allows cancellation of up to 10 million roubles in debt for those enlisted with the Defence Ministry for at least a year starting December 1.

This financial incentive applies to individuals with pre-existing debt collection cases, aiming to attract more volunteers to the conflict without initiating another general mobilisation. The military's recruitment drive has been furthered by substantial financial payouts, exceeding average salaries.

Central bank data indicates that Russian consumer debt has soared since the Kremlin's deployment of troops in 2022, despite high-interest rates. This comes amidst economic uncertainty and growing military needs.

(With inputs from agencies.)