Russian leader Vladimir Putin signed a law Saturday allowing those who sign up to fight in Ukraine to cancel unpaid debts worth nearly $100,000, the government said.

The new legislation will provide a strong incentive for some to sign up, experts say, as Russia seeks new ways to recruit fighters for the nearly three-year invasion mobilizing its troops.

The new legislation will allow those who sign a one-year contract to fight in Ukraine after December 1 to free themselves from bad debts. This also covers their spouses.

The law concerns debts for which a court order for recovery has been issued and enforcement proceedings have been initiated before December 1, 2024.

The total amount of outstanding debts that can be covered is 10 million rubles, or about $96,000 at current rates.

Parliament approved the bill earlier this month.

The legislation will largely affect young Russians of fighting age, since those in their 30s and younger are most likely to have loans.

In Russia, interest rates on loans are extremely high and many Russians have virtually no savings, although the proportion of homeowners is relatively high.

“Previously (for those who fought), there were only repayment holidays for loans,” Sergei Krivenko of the advocacy group Citizen Army Law told Telegram channel Vazhniye Istorii.

The new legislation applies to those conscripted for national service and those mobilized for the so-called “special military operation,” Krivenko said.

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Conscripts cannot be sent to the front but can choose to sign a contract to join the professional army and be sent to fight in Ukraine.

Russian authorities are “increasing the motivation to sign a contract,” political analyst Georgy Bovt wrote on Telegram.

The legislation offers “another way to get rid of the unbearable credit burden, at least for several hundred thousand people,” Bovt wrote.

More than 13 million Russians benefit from three or more loans, according to a central bank report released last month covering the first two quarters. This represents an increase of 20 percent compared to the same period last year.

The average amount owed by those with three or more loans is 1.4 million rubles ($13,400 at current rates).

Many start with a bank loan and then apply for other loans from microfinance organizations.

Russians serving on the front lines are already paid much better than the national average.

Ukraine also has legislation allowing those struggling to obtain loans on preferential terms and, in some cases, cancel their debts.