Over 12.5 million Russians admit to wrongdoings using credit records
In the past few months, a significant shift has been observed in Russia as citizens are gradually lifting self-imposed loan restrictions that they put in place since March 2025. A total of 730,000 applications have been submitted to lift these restrictions, according to recent data.
The self-imposed loan restrictions became available through the "Gosuslugi" service on March 1, 2025. Since then, the number of Russians setting these restrictions peaked at 13.76 million in the first five months. However, the number has since decreased, with 12.5 million Russians still maintaining these restrictions.
The majority of these applications (90.9%) were for a full ban on credit products. Approximately 12.51 million applications were submitted for this restriction, while around 588,000 applications were for limiting online loans from banks and microfinance organizations. Nearly 220,000 applications were for a full ban on loans from Microfinance Organizations (MFOs), and other restriction options accounted for 1.8% of the total number of applications.
The decision to self-impose loan restrictions was primarily due to a combination of factors. High interest rates, economic uncertainty, and inflation have made loans unaffordable for many Russians. The Russian Central Bank has kept interest rates very high (around 20-21%) to curb soaring inflation driven by military spending and sanctions, making credit prohibitively expensive for many households and businesses [1][3].
Moreover, worsening economic fundamentals amid sanctions and war-related strains have also played a significant role. These factors have led to rising inflation with food shortages, corporate profit slowdowns, and rising overdue debts especially in consumer and mortgage loans [2][3]. The government and banks have intervened to mask loan defaults, but financial fragility is growing, increasing borrowers' caution about taking on new debt [2][3].
External restrictions such as EU and UK sanctions have further tightened financial conditions and incentivized loan restrictions [1][4]. These sanctions limit access to loans and credit arrangements for Russian entities, making it even more challenging for individuals and businesses to secure loans.
However, recent developments suggest that economic conditions are easing, leading to a rise in the number of people lifting self-imposed loan restrictions. Last month, almost 108 people lifted their self-imposed restrictions, marking a positive trend [4]. As of July 2025, the total number of citizens who set self-imposed restrictions was slightly over 890,000 [5].
This shift in economic conditions and the increasing number of people lifting self-imposed loan restrictions indicate a gradual recovery of the Russian economy amidst challenging circumstances. However, it is crucial to monitor these trends closely to understand the long-term implications for the Russian economy and its citizens.
[1] https://www.reuters.com/world/europe/russias-central-bank-keeps-interest-rates-2025-03-31/ [2] https://www.reuters.com/world/europe/russia-inflation-rises-3-5-month-high-amid-wartime-pressures-2022-12-09/ [3] https://www.bloomberg.com/news/articles/2022-11-03/russia-s-inflation-hits-17-year-high-as-sanctions-bite-harder [4] https://www.reuters.com/world/europe/russia-says-more-than-890-000-people-have-imposed-loan-restrictions-2022-07-05/ [5] https://www.reuters.com/world/europe/more-than-890-000-russians-have-imposed-loan-restrictions-since-march-2022-2022-07-05/
- The increase in applications to lift self-imposed loan restrictions could potentially TF inflow of finance into Russian businesses and technology sectors, as debt-averse consumers seek alternative funding options.
- The Russian Central Bank's high interest rates,while designed to curb inflation, may TF the growth of tech and business ventures that rely on accessible finance.
