Russian President Vladimir Putin signed into law on Saturday a bill that provides debt relief to recruits who sign up to fight in Ukraine and their spouses.

Federal law No. 391 was previously passed by Gosduma, Russian parliament, on Tuesday 19 November, and comes into force in December.  The policy provides for the cancellation of overdue loans concluded before December 1, 2024. This applies to cases where a court order for debt recovery was issued or enforcement proceedings were initiated, with a maximum threshold of 10 million rubles. Eligible individuals include Russian citizens conscripted for military service by mobilization, conscripts servings through mandatory conscription (except cadets of military schools), and those who, on or after December 1, 2024, concluded a contract to perform military service for one year or more to participate in the so-called “Special Military Operation”, in the war in Ukraine. The cancellation of overdue loans is also extended to spouses of this category of citizens.

The new rule extends the grace period for soldiers engaged in conflict, including those conscripted or serving under contract, from 30 to 180 days, provided that they apply before the end of the year.

The law is part of Russia’s broader effort to bolster military recruitment. Moscow has recently intensified its recruitment strategies to increase manpower in the conflict area, offering significant financial incentives – sometimes several times the average salary – to attract volunteers. This comes as Russia attempts to avoid another mass exodus like the one in September 2022, triggered by the announcement of “partial mobilization.” Meanwhile, experts suggest that inflation in Russia may surpass the projections provided by the state Central Bank.

In October, reports surfaced that North Korea had sent over 10,000 troops to Russia, some of which were already fighting on the front lines, to increase pressure on the Ukrainian army.

The new law was signed days after the shelling of the Ukraine city of Dnipro with a new medium-range ballistic missile, which Putin said was a response to Kyiv’s use of American and British missiles capable of hitting deeper than Russia, which some consider an escalation of conflict.