MOSCOW, October 23 (RIA Novosti) - Russia's president urged the government Monday to move forward with a federal mortgage program aimed at giving the country's military officers and contract servicemen access to housing at subsidized rates.
The mortgage program for the military, adopted at the beginning of 2005, "should undoubtedly be implemented," Vladimir Putin said at a government meeting.
Defense Minister Sergei Ivanov recently said the lack of housing for servicemen remains a serious problem in Russia, with many military families having to live in cramped barracks and rented flats.
In March, Ivanov hailed the federal mortgage program for the military "a major achievement."
The government allocated a total of 1 billon rubles ($34.9 million) for the program's implementation in 2005, and 3.3 billion rubles ($115 million) in 2006. It plans to substantially increase allocations for the program over the next two years.
President Putin said the government should take full responsibility for programs launched on its own initiative, and must ensure that all proposed plans are implemented.
According to the defense minister, the government is currently making extensive use of housing vouchers and market investment mechanisms to deal with the housing problem for the vast and poorly-paid armed forces; however, housing programs for the military remain insufficient, given the soaring prices of living space in Moscow, St. Petersburg and many other regions.
Ivanov proposed at the meeting increasing annual mortgage compensation for each serviceman who accepts to participate in the program from 37,000 rubles ($1,374) to up to 70,000 rubles ($2,600), and Finance Minister Alexei Kudrin confirmed that it could be done starting in 2008.
The defense minister also said his ministry will provide 40,000 apartments for servicemen in 2006.
