Russia Introduces Financial Restriction: Payments Over 50,000 Rubles Prohibited
Starting April 2026, the purchase of goods on installment could be subject to a cap, as proposed by the State Duma. Anatoly Aksakov, founder of the Financial Market Committee, anticipates the relevant bill will be deliberated in June.
The potential restrictions on installment purchases have sparked controversy, with service providers requesting a minimum limit of 100,000 rubles or more. Originally, the Central Bank had advocated for a limit of 15,000 rubles, but the ongoing discussions have led to a suggested compromise figure of 50,000 rubles, according to Rossiyskaya Gazeta.
Concerns from the regulator have arisen due to the perception of installment purchases as a masked form of loans. The absence of contracts for customers buys on installment means that debt obligations often do not appear on credit bureaus. As a result, an individual may effectively maintain a clean credit history while facing payment issues.
The installment plan conditions, including purchase limits and duration, are primarily set by developers or project-specific terms, rather than enforced by federal law. On-going discussions surrounding regulatory adjustments are underway but have not yet led to the development or adoption of any specific national installment purchase limit as of May 2025.
Additionally, there are ongoing efforts to address the increasing popularity of installment sales, particularly in the housing market, which have garnered attention from the Central Bank due to perceived risks for both buyers and developers. According to industry sources, over half of apartments in some regions like Tatarstan are now sold via installment plans, leading to substantial funds being held in these deals rather than being paid into escrow accounts at the outset. Although there is a need for regulations to better control and balance these mechanisms, no nationwide limit or strict federal regulation has been formalized in law at present.
In brief:- The State Duma is considering a bill for installment purchase restrictions, but no concrete bill limiting installment purchases for all Russians has been officially proposed.- Installment terms, such as maximum purchase amounts and durations, are typically determined by developers or project-specific conditions, rather than federal law.- Discussions about improving the regulation of installment sales are ongoing, but no national installment purchase limit has been formalized in law as of May 2025.- The growing popularity of installment sales, particularly in the housing market, has raised concerns from the Central Bank, who view the practice as risky for both buyers and sellers, leading to calls for improved regulation.
Businesses and finance industries are closely watching the ongoing debates in the State Duma regarding potential restrictions on installment purchases, as the absence of national installment purchase limits has been a topic of controversy. The proposed bill, which is expected to be deliberated in June, suggests a compromise figure of 50,000 rubles, but concerns from the regulator and service providers may lead to further adjustments.
