Putin orders more aid as Russian regional finances deteriorate
Russian dictator Vladimir Putin (Photo: Alexander Nemenov/Pool via REUTERS)
Russian leader Vladimir Putin has ordered the government to provide additional support to the country’s regions as their financial position deteriorates, with further debt write-offs and repayment deferrals set to become the main tools, The Moscow Times reported.
Speaking at a meeting of the Council for Strategic Development and National Projects, Putin said maintaining the stability of regional budgets was a direct responsibility of the federal government and the Finance Ministry.
Finance Minister Anton Siluanov said 76 Russian regions have had RUB 518 billion ($6 billion) in federal budget loans written off since the beginning of 2026.
Despite those measures, the regions’ combined public debt has fallen by only RUB 115 billion ($1.3 billion) and currently stands at around RUB 3.3 trillion ($38.5 billion).
Regional finances are also being squeezed by growing budget deficits.
Russian regions recorded a combined deficit of RUB 169 billion ($2 billion) in the first half of 2026, while authorities expect spending to increase further by the end of the year.
Putin orders loan repayments postponed beyond 2030
Putin instructed the government to postpone repayment of part of the regions’ federal budget loans until after 2030.
Repayment of roughly RUB 100 billion ($1.2 billion) in loans that was due to begin this year will be postponed until 2030.
Repayment of another third of loans scheduled for 2027-2029 will be shifted to 2031-2033.
The measures are expected to free up nearly RUB 300 billion ($3.5 billion) for regional governments.
Putin also ordered an additional RUB 100 billion ($1.2 billion) in targeted assistance for regions facing the most difficult budget conditions.
The federal government is therefore continuing to ease the regions’ debt burden using federal resources even as Moscow itself faces growing demand for funds.
Russia wrote off RUB 227 billion ($2.6 billion) in regional budget debt in 2025, but the scale of support has increased significantly in 2026.
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