Russia lures recruits with CAD 195,000 debt cancellation program
The Russian State Duma has approved a law allowing the cancellation of debts up to approximately CAD 140,000 for participants in the war in Ukraine. This is the Kremlin’s strategy for recruiting new soldiers.
The Kremlin is searching for new soldiers to send to the front in Ukraine, offering debt forgiveness up to approximately CAD 140,000. The Russian State Duma passed a special law concerning loans taken out before December 1, 2024, that are already subject to court or enforcement proceedings. The cancellation will apply to participants in the war and their relatives, who sign a contract with the Russian Ministry of Defense after December 1, 2024.
According to the Federal Bailiff Service, from January to September 2024, creditors demanded repayment of approximately CAD 20 billion, which is a 34.2% increase compared to the previous year. During this period, 10.9 million new enforcement proceedings were initiated, a rise of 11.6% compared to 2023.
Russia needs thousands of soldiers, counts on debtors
Portal Verska reports that 90% of those signing contracts with the Ministry of Defense are individuals with financial problems. The Kremlin plans to attract 225,000 new soldiers for contract service over three years.
A decree by President Putin on July 31, 2024, currently sets the salary for signing a contract at approximately CAD 5,600.
The war costs billions of rubles
In the first half of 2024, Moscow spent over approximately CAD 450 million on payments to new contractors, exceeding the budget planned for next year. This highlights the importance the Kremlin places on recruiting new soldiers.
Next year, the Kremlin will allocate as much as 41% of its budget to defense and security. This is more than the total sum spent on education, healthcare, social policy, and economic development. Interestingly, almost 30% of these funds will indirectly support military actions. The costs of the conflict in Ukraine continue to rise, gradually consuming the profits generated in recent years.
These are the largest military expenditures in Russia's history. Never before has the state planned to allocate such enormous resources to military purposes. Moreover, just a year ago, a completely different scenario was predicted. According to the budget adopted last fall, in 2025, defense spending was expected to decrease to approximately CAD 120 billion. However, the escalating conflict in Ukraine is generating increasing costs.
