The authorities of seven regions of the Russian Federation are working on the launch of so-called “people’s bonds” — yet another instrument designed to extract money directly from citizens’ pockets. Formally, these bonds are presented as a means of financing infrastructure and social projects, as well as partially covering regional budget deficits. In reality, they reflect a shortage of resources. The pilot group consists mainly of subsidized regions in the Far East: Khabarovsk, Kamchatka, and Primorsky Krais, the Magadan and Amur regions, the Chukotka Autonomous Okrug, and Yakutia.
The offer is presented as “safe” and “attractive”: fixed income with no market volatility, interest rates not lower than bank deposits — in some cases up to 16–17% per year — and a minimum entry threshold of just 1,000 rubles. The purchase process is promised to be as simple as possible: through online platforms without brokerage accounts and with full digital identification. Each issuance is capped at 1 billion rubles, supposedly to maintain debt sustainability. Such excessive “generosity” of terms is traditionally a sign of elevated risks — the Russian authorities have repeatedly used similar schemes to shift financial problems onto citizens.
A key detail is the absence of strict allocation rules for the raised funds. The money may go anywhere: from utilities and transport to education and healthcare — or simply to cover current expenses. In the short term, this may temporarily muffle budget gaps and reduce pressure on the banking system. In the longer term, it will only cement the deterioration of regional finances: deficits will grow, income from profit tax will fall, and debts will be pushed into the future. There is no money in the system, which is why the authorities are again turning to the population, masking a fiscal crisis with attractive promises that usually end in disappointment.
