Debt cancellations for Russian soldiers are likely to increase financial pressure on Russian banks next year, according to British intelligence shared by the UK Ministry of Defense on social media.
Russia is leveraging financial incentives to avoid a new wave of mobilization, which the Kremlin views as damaging to public support for the war, which also could continue to trigger mass emigration.
In late November, Russia passed a law enabling the cancellation of debts for soldiers who began service after 1 December 2024. This initiative covers loans up to approximately $94,400 and extends to soldiers' spouses as well.
This measure adds to the existing "Loan Repayment Holidays" program for Russian military personnel. According to Russia’s Mediazona, 411,000 applications for mortgage and personal loan repayment have been filed since October 2022.
Analysts estimate that Russia's financial incentives are almost certainly aimed at offsetting mounting losses, now exceeding 760,000 killed and wounded, with an average of 1,532 casualties per day in November.
British intelligence assesses that debt cancellations will likely exacerbate the financial strain on Russian banks by 2025, compounding the effects of high interest rates and sanctions. This will almost certainly weaken the banking sector's resilience to potential economic shocks.
Earlier, reports revealed that the EU planned to adopt its 16th package of sanctions against Russia on 24 February 2025, marking the third anniversary of Russia’s full-scale invasion of Ukraine.
The new package will target “specific sectors of the Russian economy that have not been covered at all or have been covered insufficiently so far,” EU diplomatic sources said.
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