Putin orders more aid as Russian regional finances deteriorate
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.
Vladimir Putin has directed the Russian government to provide extra aid to regions grappling with deteriorating finances, according to The Moscow Times. At a Council for Strategic Development and National Projects meeting, Putin emphasized that safeguarding regional budget stability lies squarely within the federal government's purview, particularly the Finance Ministry.
Finance Minister Anton Siluanov disclosed that 76 Russian regions have received RUB 518 billion ($6 billion) in federal budget loan write-offs since the start of 2026. Despite these efforts, combined regional public debt has only decreased by RUB 115 billion ($1.3 billion), currently totaling around RUB 3.3 trillion ($38.5 billion).
Regional finances are further strained by expanding budget deficits; regions reported a RUB 169 billion ($2 billion) deficit in the first half of 2026, with authorities anticipating further spending increases by year-end. In response, Putin instructed the government to delay repayment of part of the regions' federal budget loans until after 2030, deferring roughly RUB 100 billion ($1.2 billion) of loans that were initially due this year until 2030.
The postponement of another third of loans scheduled for 2027-2029 will be extended to 2031-2033, freeing up nearly RUB 300 billion ($3.5 billion) for regional governments. Additionally, Putin ordered an extra RUB 100 billion ($1.2 billion) in targeted assistance for regions facing the most challenging budget conditions. The federal government is thus continuing to alleviate the regions' debt burden with federal resources as Moscow itself faces mounting fund demands, even as regional finances continue to deteriorate.
Written by urgent.news from New Voice of Ukraine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
