Russian President Vladimir Putin has doubled upfront payments for volunteers to fight in Ukraine to 400,000 roubles ($4,651), aiming to boost military recruitment, Reuters reports.
Volunteers will now receive an initial payment of 400,000 roubles ($4,651), raising the first-year minimum annual wage to 3.25 million roubles ($37,791), significantly higher than the average Russian wage. Moscow’s mayor has set a higher upfront payment of 1.9 million roubles ($21,777), resulting in a first-year annual pay of 5.2 million roubles for city residents. Additionally, volunteers benefit from exemptions on monthly interest payments on consumer loans and state guarantees on such loans if they die, encouraging more people to take out loans and driving consumer lending growth despite rising interest rates. Economists warn these payments are contributing to wage inflation and economic imbalances.
These financial incentives have helped avoid a new nationwide mobilization, following a problematic campaign in 2022 that led to many Russians fleeing to neighboring countries. So far, about 190,000 people have volunteered to fight in Ukraine this year, compared to 490,000 contracts signed in 2023.
