Swedish authorities say Russia is behind “harmful interference” deliberately targeting the Nordic country’s satellite networks that it first noted days after joining NATO earlier this year.

The Swedish Post and Telecom Authority asked the radio regulations board of the Geneva-based International Telecommunications Union to address the Russian disruptions at a meeting that starts Monday, according to a June 4 letter to the United Nations agency that has not been previously reported.

The PTS, as the Swedish agency is called, complained to Russia about the interference on March 21, the letter said. That was two weeks after the country joined the North Atlantic Treaty Organization, cementing the military alliance’s position in the Baltic Sea.

Russia has increasingly sought to disrupt European communication systems since the 2022 invasion of Ukraine, as it tests the preparedness of the European Union and NATO. European satellite companies have been targeted by Russian radio frequency interference for months, leading to interrupted broadcasts and, in at least two instances, violent programming replacing content on a children’s channel.

Swedish authorities said interference from Russia and Crimea has targeted three different Sirius satellite networks situated at the orbital position of 5-degrees east. That location is one of the major satellite positions serving Nordic countries and eastern Europe.

Kremlin spokesman Dmitry Peskov said he was unaware of the issue. A spokesperson for Sweden’s PTS declined to comment beyond the contents of the letter.

“These disruptions are, of course, serious and can be seen as part of wider Russian hybrid actions aimed at Sweden and others,” Swedish Prime Minister Ulf Kristersson said in a statement to Bloomberg. “We are working together with other countries to find a response to this action.”

Kristersson added that the disruption affected TV broadcasts in Ukraine that relied on the targeted satellite, which is owned by a Swedish company, which he didn’t identify.

France, the Netherlands and Luxembourg have filed similar complaints to the ITU, which coordinates the global sharing of radio frequencies and satellite orbits. The countries are all seeking to discuss the interference at the Radio Regulations Board meeting next week.

The issue is the latest problem in the Baltics and Nordic regions attributed to Moscow. Sweden was the victim of a wave of cyberattacks earlier this year suspected of emanating from Russia.

In April, Estonia and Finland accused Moscow of jamming GPS signals, disrupting flights and maritime traffic as it tested the resilience of NATO members’ technology infrastructure.

Brussels raised the issue at an ITU Council meeting earlier this month. “We express our concern, as several ITU member states have recently suffered harmful interferences affecting satellite signals, including GPS,” the EU said in a statement on June 10.

Starlink Block

The Radio Regulations Board is also set to discuss the ongoing dispute between Washington and Tehran over whether Elon Musk’s Starlink satellite network should be allowed to operate in Iran.

Iran has sought to block Starlink, arguing that the network violates the UN agency’s rules prohibiting use of telecommunications services not authorized by national governments. The board ruled in favor of Iran in March.

Hezbollah has been trading fire with Israel for more than eight months in parallel with the Gaza war. On Tuesday, the Iran-backed group published what it said was drone footage of sensitive military sites deep in Israeli territory.

In a televised address on Wednesday, Hezbollah chief Sayyed Hassan Nasrallah said "there will be no place safe from our missiles and our drones" in Israel in the event of a broader war.

The group also had "a bank of targets" that it could target in precision strikes, he said.

Israel "knows that what also awaits it in the Mediterranean is very big ... In the face of a battle of this magnitude, it knows that it must now wait for us on land, in the air, and at sea," Nasrallah added.

Israeli Foreign Minister Israel Katz had warned on Tuesday that a decision on an all-out war with Hezbollah was coming soon and Israel's military said "operational plans for an offensive in Lebanon were approved and validated".

Nasrallah also threatened Cyprus - the EU member state in closest proximity to Lebanon, with which it has cordial relations - accusing it of allowing Israel to use its airports and bases for military exercises.

In the US, consumers can freeze their credit worthiness records and receive a code. When the records are frozen, the only orgs that can access the records are those already doing business with the consumer. If a consumer wants to open up a new account, they share the code with the prospective creditor who uses it to see the credit report.

So the question is, how are access controls on credit histories done in various EU nations? Do any use unlock codes like the US, or is it all trust based?

"Professors at the European University Institute are warning of the rapid popularisation of generative-AI that makes threats of foreign interference and disinformation operations more subtle and harmful for our democracies than ever before. The number of violations reported just in Europe and only in 2024, also denounced by the Danish Broadcasting Corporation, depicts well-established tactics of media warfare from which the population needs to be protected."

China's commerce ministry said on Wednesday that it had urged Britain to stop sanctioning Chinese firms after the country sanctioned five Chinese companies over their links to Russia.

In a statement, the ministry said China "firmly opposes Britain's actions on the grounds that the Chinese companies are "related to Russia."

Britain last week imposed its first sanctions targeting vessels in Russian President Vladimir Putin's "shadow fleet" that it said was used to circumvent Western sanctions on the trade in Russian oil.

The action, part of 50 new sanctions and coordinated with G7 partners, also targeted suppliers of munitions, machine tools, microelectronics, and logistics to Russia's military, including entities based in China, Israel, Kyrgyzstan and Turkey, the British government said.

Britain's approach has ignored China's representations and the momentum and had a negative impact on economic and trade relations between China and the UK, China's commerce ministry said.

"Britain's approach is a unilateral sanction that has no basis in international law," it added. "We urge Britain to immediately correct its erroneous practices."

The planned chat control makes the world less secure and more authoritarian, as it is directed against private and encrypted communication. Proponents are using disinformation, lies, and sleight of hand to push through the project. But chat control can still be stopped. A commentary.

For years, legions of IT experts and security researchers, lawyers, data protection experts, digital organizations, tech companies, messengers, UN representatives, child protection experts, guardians of internet standards, scientists, and anyone else with expertise have been raising alarms around the world: chat control is dangerous. It is a new form of mass surveillance. It will weaken the IT security of us all. It would introduce a surveillance infrastructure on apps and end devices beyond the EU that authoritarian states will use to their advantage.

Ultimately, chat control is a frontal attack on end-to-end encryption. Put simply, this form of encryption ensures that the sender puts their message in an envelope that can only be opened by the recipient. With the planned chat control, the envelope is not forcibly opened on the way to the recipient; instead, the contents of the envelope are analysed before being inserted into the envelope. So when you write a letter, your private data is looked at directly over your shoulder. Nothing Is Private Anymore When Chat Control Arrives

Those in favour of chat control now claim that the envelope – in this case, end-to-end encryption – would not be opened and that communication would therefore be secure and encrypted. It’s a shabby and transparent sleight of hand: after all, what is the protective envelope worth if what we send to other people is screened by default before it is sent? And where is the good old privacy of correspondence for our digital letters on WhatsApp, Signal, or Threema? What right do you have to monitor what I do and what I send on my mobile phone, tablet, and computer? How dare you!

The fact is that it is not technically possible to monitor all content at the same time and still guarantee private and secure communication. It simply isn’t possible. But the EU Commissioner for Home Affairs, Ylva Johansson, and all the other proponents of chat control claim exactly the opposite. They openly lie to our faces, place misleading ads, and pretend that chat control is somehow harmless and compatible with fundamental rights and data protection. They spread the disinformation that private communication and the screening of all content can coexist. This is nothing less than an insult to common sense.

It’s Not About the Children

The surveillance proponents pretend that they want to better protect children and tell horror stories based on dubious figures. But it was clear from the outset that chat control is about attacking end-to-end encryption – and therefore the secure and private communication of billions of people. Because if the EU, with its 450 million inhabitants, introduces chat control, it will have a global impact.

From the very beginning, a lobby network intertwined with the security apparatus has been pushing chat control. It was never really about the children; otherwise, the root causes of abuse and violence would be addressed instead of monitoring innocent people without any initial suspicion. The point is that encrypted communication is a thorn in the side of the security apparatus. That is why it has been trying to combat our private and encrypted communication in various ways for years.

This is the surveillance state at its best and a reversal of the principles of the rule of law. Everyone is guilty until proven otherwise. This chat control is a spawn of authoritarian fantasies – and as such, the EU member states must reject it in the Council on Thursday if they still have a shred of democratic values.

Russia has turned increasingly to blackmail and financial incentives to hire Germans to spy for it after the blow dealt to its intelligence services by Europe's expulsion of some 600 Russian diplomats, Germany's domestic security service said.

The Federal Office for the Protection of the Constitution (BfV) said Russian intelligence services were spending big to recruit agents in Germany despite Western attempts to limit their operations since Moscow's invasion of Ukraine. "Russia is working hard to compensate for the German government's reduction in the number of Russian agents in Germany," BfV chief Thomas Haldenwang told a news conference upon presenting the agency's annual report.

Two German citizens who were charged last August with high treason for spying for Russia had each been paid an estimated 400,000 euros ($428,560) for their services, the BfV said.

"The agent fees show that Russia's services continue to have enormous financial resources with which to pursue their intelligence goals," it added in the report.

Particularly at risk of being targeted by Russian security services were Germans who lived in Russia or regularly travelled there, including German diplomats, who could easily be made vulnerable to blackmail attempts.

"As soon as they have compromising information about their targets, these services are not shy about employing aggressive recruitment techniques," they added.

NATO reaffirmed this month its concerns about Russian espionage and called for tougher action in response to what it said was a campaign of hostile activities, including sabotage and cyber attacks. Germany is one of 32 NATO states.

Far right

Russia's invasion of Ukraine on Feb. 24, 2022, was a rude awakening for many in Germany's security establishment after years in which Berlin had attempted to bind Moscow into the international legal order through a web of trade and especially energy links.

A recent surge in support for the far-right Alternative for Germany (AfD) party and the authoritarian-left BSW party has also helped trigger a major rethink. Both parties often echo Kremlin talking points on the war, including in their opposition to providing Ukraine with arms to defend itself.

The number of right-wing and left-wing extremists rose once more last year by 4.6% and 1.4% respectively to 40,600 and 37,000, according to the BfV report, contributing to public discourse moving away from factual debate towards "aggressive confrontation".

Russia has proved adaptable in finding ways of influencing events in Germany even after its media channels were banned and 600 of its diplomats stationed around Europe were expelled, the BfV said.

Some of those influencing efforts have shifted to the social media platform Telegram, which is difficult to police, while spies are now being attached to international organisations. Russian officers tasked with handling informants are now travelling to do so rather than being based in Germany.

Far-right groups are also a receptive audience for Russian influence operations. These include the Reichsbuerger (Citizens of the Reich) conspiracy theorists, some of whom are now on trial for plotting a coup against the German democratic order for which they had sought Russian support.

Among new conspiracies circulating in far-right circles, the BfV said, is a groundless belief that the war in Ukraine is intended to create a depopulated wasteland in the country's east to which the population of Israel could be relocated. It said Ukrainian President Volodymyr Zelenskiy, being Jewish, was falsely presented as being one of the conspirators.

- In response to the EU's tariffs on EV, China announced an anti-dumping probe on pork imports from the European Union. But at less than $2 billion last year, pork accounts for a tiny sliver of the trade between the EU and China, which topped $280 billion in 2023.

- So why is China going after a sector that, economically, matters so little? Politics.

- Beijing is deploying a playbook it has used in previous trade skirmishes with Europe, the US and Australia. By targeting agriculture, the soft (pork) belly of Europe, China tries to keep the conflict contained and leverages the outsized influence of Europe’s farming lobby.

- Beijing obviously hopes that EU nations would now pressure Brussels into softening the EV tariffs before they’re officially imposed July 4. However, EU nations should avoid playing into China’s hands.--

Growing up in Spain, where the farming sector is a powerhouse, the wars I lived through were named for food: the “strawberry war” with the French in 1989, the “tuna war” with the British in 1990, and the “turbot war” with the Canadians in 1995. Still, nothing prepared me for what’s shaping up to be the “ham war” with China.

On Monday, Beijing announced an anti-dumping probe on pork imports from the European Union, a first step toward tariffs. The probe came less than a week after Brussels announced it would impose duties on Chinese-made electric vehicles as high as 50%, saying they benefited from “unfair subsidisation.”

Spain is, by far, the largest pork exporter into China, whose taste for the nation’s succulent (and expensive) Iberico ham has become increasingly fashionable. The Netherlands, Denmark, France, Belgium and Germany are also significant exporters.

But at less than $2 billion last year, pork accounts for a tiny sliver of the trade between the EU and China, which topped $280 billion in 2023. So why is China going after a sector that, economically, matters so little? Politics.

Beijing is deploying a playbook it has used in previous trade skirmishes with Europe, the US and Australia. By targeting agriculture, the soft (pork) belly of Europe, China achieves two objectives: It keeps the conflict contained and leverages the outsized influence of Europe’s farming lobby.

Beijing obviously hopes that EU nations would now pressure Brussels into softening the EV tariffs before they’re officially imposed July 4. Germany was already unhappy with the duties, fearing for its own car sales in China; Spain and France, which appeared undecided, could join Berlin against Brussels.

However, EU nations can avoid playing into China’s hands. Take Spain, where pork can make headlines in news bulletins and the quality of meat is a source of national pride. Last year, Spain exported €12.2 billion in meat, including not only pork, but also beef and poultry, to every nation in the world. But during the same period, its exports of automobiles, motorbikes and car components reached nearly €54 billion. It’s clear what sector matters the most economically.

Then, consider that Spain has no rival in China when it comes to high-end pork, but Spain and China are competing in the very same segment in the car industry: small, cheap cars for the growing ranks of the world’s working and middle classes. Spain has so far focused on gasoline- and diesel-powered cars, while the Chinese are leading on electric ones. Without tariff protection, it’s unlikely that Spain would be able to switch from gasoline into electric cars, and without that switch, its car industry would slowly die.

China has used the local farmers of its trade antagonist for its own benefit before: It pressured Australia by targeting its farm exports, including barley, beef, wine and lobsters, and it tried to force the hand of the US by restricting the soybean trade. The farming lobby is particularly strong in Brussels. After all, autoworkers don’t take their cars to the center of Brussels as farmers do with their tractors when they need to protest government policy.

China also knows that its imports of European pork, particularly of low-value-added meat, is going to decline as its pig herd grows again to meet local demand, which the Europeans also know and are braced for.

European nations should play their cards carefully. China has opened a window for negotiation. Its probe into European pork exports is likely to last six months, potentially a year, leaving plenty of time for talks. In that vein, its response to Brussels isn’t the start of a trade war, but rather the beginning of prewar talks. Both sides can find a solution.

Ultimately, Europe shouldn’t trade off its multibillion-euro car industry to content its politically active farmers. Agricultural exports are important, but they are more valuable for sentimental reasons than for economic impact. Put your mind in the euro value alone, however, and cars win – by a long mile. That should be the focus in Brussels, and in Madrid, Paris, Amsterdam and Copenhagen.

This is not a joke...

https://x.com/HungaryintheEU/status/1803040970377773293

Tony Sinclair had worked all his life – but still found himself sleeping rough. Then even his tent was taken away from him.

In a way, 70-year-old Tony Sinclair was lucky to be in his tent on the day last year when the police arrived. The canvas that kept him from the elements ended up in the bin, but, unlike several of his neighbours, he was able to save his most important possessions from going the same way.

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• There is broad consensus that the shadow fleet is an international problem and that international solutions are required, Norway says.
• Since Western nations imposed a price cap on Russia's oil in an attempt to curb vital funds for its war in Ukraine, Russia has increasingly relied on a fleet of often ageing tankers based and insured outside the West.
• Russia's protested, saying that unimpeded passage of ships through Danish waters was guaranteed by the Copenhagen Treaty of 1857.

Denmark is considering ways to stop a so-called shadow fleet of tankers from carrying Russian oil through the Baltic Sea, the Nordic country said on Monday, triggering a sharp response from Moscow's diplomats who said any such move would be unacceptable.

Russia sends about a third of its seaborne oil exports, or 1.5% of global supply, through the Danish straits that sit as a gateway to the Baltic Sea, so any attempt to halt supplies could send oil prices higher and hit the Kremlin's finances.

Since Western nations imposed a price cap on Russia's oil in an attempt to curb vital funds for its war in Ukraine, Russia has relied on a fleet of often ageing tankers based and insured outside the West.

Denmark has brought together a group of allied countries to evaluate measures that would target this fleet, Foreign Minister Lars Lokke Rasmussen told Reuters in an emailed statement.

He did not say what measures were being considered.

"There is broad consensus that the shadow fleet is an international problem and that international solutions are required," Lokke Rasmussen said.

"It's important that any new measures can be implemented in practice and that they are legally sound with regards to international law," he added.

Countries involved in the talks included other Baltic Sea states and European Union members, the minister said.

Imposing restrictions on ships passing through the straits would be unacceptable, Russia's ambassador to Denmark, Vladimir Barbin, told Reuters.

"The threat to the safety of navigation and the marine environment in the Baltic Sea are not the tankers with Russian oil, but the sanctions imposed by the West against Russia," Barbin said.

"This is what the coalition of states established at Denmark's initiative should be thinking about," he added.

The unimpeded passage of ships through Danish waters was guaranteed by the Copenhagen Treaty of 1857, which remains valid and legally binding, the ambassador said.

Denmark is concerned that old tankers transporting oil through its straits represent a potential danger to the environment.

The patchwork plains of Castilla-La Mancha, in central Spain, were once known for their windmills.

But now it is wind turbines, their modern-day equivalent, which are much more visible on the region’s skyline.

The 28 vast turbines of the Sierra del Romeral windfarm, perched on hills not far from the historic city of Toledo, look out over this landscape.

Operated by Spanish firm Iberdrola, they are part of a trend that has accelerated Spain’s renewable energy output over the past half-decade, making the country a major presence in the industry.

Spain’s total wind generation capacity, its prime renewable source in recent years, has doubled since 2008. Solar energy capacity, meanwhile, has increased by a factor of eight over the same period.

This makes Spain the EU member state with the second-largest renewable energy infrastructure, after Sweden in first place.

Earlier this year, Spain's Socialist Workers' Party prime minister, Pedro Sánchez, described his country as "a driving force of the energy transition on a global scale".

The boom began soon after the arrival of a new government under Mr Sánchez in 2018, with the removal of regulatory obstacles, and the introduction of subsidies for renewable installation. The pandemic further accelerated the trend on a domestic level.

"The impact of Covid was very positive for our sector," says José Donoso, chief executive of UNEF, the Spanish Photovoltaic Association, which represents the solar panel sector. "People saved money, took time to think about what to do with it, and many of them decided that it was better invested on their roof than in their bank."

Meanwhile, the government introduced ambitious new targets, including covering 81% of Spain’s electricity needs with renewables by 2030.

However, behind this success story, there are concerns within the electricity industry caused by an imbalance between supply and demand with, at times, a surplus of electricity.

Even though the Spanish economy has bounced back strongly from the trauma of the Covid pandemic, and is growing faster than all of the bloc’s other big economies, electricity consumption has been dropping in recent years.

Last year, demand for electricity was even below that seen in the pandemic year 2020, and the lowest since 2003.

"What we saw until 2005 was that when GDP increased, demand for electricity increased more than GDP," says Miguel de la Torre Rodríguez, head of system development at Red Eléctrica (REE), the company that operates Spain's national grid.

More recently, he says, "we've seen that demand has increased less than GDP. What we're seeing is a decoupling of energy intensity from the economy".

There are several reasons for the recent drop in demand. They include the energy crisis triggered by Russia's invasion of Ukraine in 2022, which caused businesses and homes across Europe to cut back on usage.

Also, energy efficiency has improved and become more commonplace.

The increased usage of renewable energy has also contributed to the reduction in demand for electricity from the national grid.

Mr Rodríguez says that during daylight hours, when solar energy output is particularly strong, the supply-demand balance can be pushed out of kilter, having an impact on prices.

"Since the power system always has to have an equilibrium – demand has to equal generation – that has meant there has been excess generation during those hours," he says.

"That has driven prices down, especially during certain hours, when the prices have been zero or even negative."

While such low prices are welcome for consumers, they are potentially a problem when it comes to attracting investment to the industry.

"This can make it more difficult for investors to increase their investment in new electricity based on renewable energies," says Sara Pizzinato, a renewable energy expert at Greenpeace Spain.

"That can be a bottleneck for the energy transition."

Concerns about Spain having an excess of electricity have led to discussion of the need to accelerate the "electrification" of the economy, which involves moving it away from fossil fuels. The Sánchez government has set a target of making 34% of the economy reliant on electricity by 2030.

"This process is going slowly, and we need to accelerate it," says UNEF’s José Donoso.

"Electricity is the cheapest and most competitive way to produce clean energy.

"We need facilities that use electricity in place of fossil fuels."

Shifting to a total reliance on electricity is seen as unrealistic, as some important sectors like chemicals and metals will find the transition difficult.

However, Mr Donoso and others see plenty of scope for swifter electrification. For example, Spain is trailing many of its European neighbours when it comes to the installation of heat pumps in homes, and the use of electric cars, which only make up around 6% of vehicles on the road.

Ms Pizzinato agrees that electrification is crucial, but says there are other ways of tackling the supply-demand quandary, including phasing out the use of nuclear plants more quickly, and increasing energy storage capability.

She says: "We need to engage more people and more industries in demand-side management, to make sure the flexibility needed in the system is out there to make generation and demand match better during the day and during the night."

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- Inflation is rising in Russia. At the same time, banks are increasingly denying citizens’ loan applications. As a result, Russians are turning more and more to payday lenders to buy basic necessities like food and clothing — and this doesn’t bode well for the country’s economy. - Payday loans in Russia are capped at one million rubles (about $11,250) and generally have a repayment period of between one week and 60 days. Interest rates for these loans are high, averaging at about 0.5–0.8 percent per day, or up to 292 percent per year. - Currently, the average monthly income of Russians applying for payday loans is 50,000 rubles, or about $562, while the average size of these loans is 9,990 rubles ($112). Economists say that Russians are aggressively taking out loans and payday loans, despite the fact that interest rates are rising faster than incomes. - More than 12,000 people initiated a simplified, 'out-of-court' bankruptcy process process in the first quarter of 2024 — more than five times the number of people who did so in the same period the previous year. The number of judicial bankruptcies rose by 18.2 percent to 89,800 over the same period.--

Journalists from the independent Russian outlet Holod spoke to two economists and a lawyer about how Russia’s payday loan services work and what their rise could bring in the future. Meduza shares an English-language summary of their reporting.

In 2023, Russians took out a record-breaking one trillion rubles (approximately $11.2 billion) in payday loans — 30% more than in 2022. Some experts predict that this figure could increase again by as much as 25 percent in 2024. By the end of 2023, the number of Russians using “microfinance organizations” (MFOs) had reached 19.9 million, which is 2.7 million more than in the previous year. And as of the end of the first quarter of 2024, about 32 percent of these loans were overdue.

Payday loans in Russia are capped at one million rubles (about $11,250) and generally have a repayment period of between one week and 60 days. Interest rates for these loans are high, averaging at about 0.5–0.8 percent per day, or up to 292 percent per year. They can be secured easily and quickly both online and offline, with applications often processed in less than an hour and money often disbursed on the same day. Traditional bank loans, in contrast, can take several days to process, and the refusal rate from Russian banks reached 80 percent in October of last year.

Currently, the average monthly income of Russians applying for payday loans is 50,000 rubles, or about $562, while the average size of these loans is 9,990 rubles ($112). In general, Russians turn to payday loans to purchase food and clothing as well as to pay off older loans, economist Nikolai Kulbak told Holod. Most people who use payday loans in Russia use them more than once: in 2023, about 83.4 percent of payday loan recipients were repeat customers.

A house of cards

According to economist Yevgeny Nadorshin, the current rate of growth of the payday lending industry in Russia is a bad sign for the health of the Russian economy. He told Holod:

Russians are aggressively taking out loans and payday loans, despite the fact that interest rates are rising faster than incomes. The country’s economy is currently growing not from import substitution or investments but due to a rise in consumer demand that’s being fueled by loans. This kind of economic growth can’t be sustained for long. Its slowdown or even decline are the most likely scenarios for the future.

According to Nadorshin, MFOs currently have a greater impact on the market than banks do. “This is due to the tightening of credit policies and the increase of the key interest rate, which affects the interest rate at which banks lend money,” he explained. “As a result, MFOs have seen an additional influx of clients, which has enabled them to set a new record in loan volumes. According to data from the Central Bank, some of the people who took out payday loans in the first quarter of 2024 had previously obtained bank loans.”

Kulbak told Holod he also expects to see a continued rise in the number of payday loans being issued in Russia. “Banks used to give loans even to clients who were already devoting most of their income to paying off existing loans; now they’re increasingly refusing people,” he said, adding that he expects the trend to persist for the next six months since inflation does not seem to be slowing down. “The fewer loans banks approve, the more people turn to MFOs. Ultimately, this leads to an increase in bankruptcies,” said the economist.

A vicious cycle

MFOs in Russia often bundle their loans with other services, from text message notifications to life insurance and legal consultations. The cost of these services can be as high as the loan amount itself and also incurs interest.

Defaulting on payments of these fees can lead to penalties, legal proceedings, and damage to one’s credit history. “If you stop making payments, interest and penalties will start accruing in addition to the principal debt,” lawyer Filipp Pokrovsky told Holod. “According to [Russian] law, the sum of fines and interest on contracts lasting less than one year cannot exceed 130 percent of the principal debt, meaning that for a loan of 10,000 rubles, MFOs can demand repayment of up to 23,000 rubles.”

One of the main risks that MFO clients face is the accumulation of multiple loans. “When a person starts extending their debts, it can turn into a vicious cycle: they’re compelled to take out additional payday loans to settle previous ones,” Pokrovsky explained.

In addition to the traditional personal bankruptcy process, Russian law allows certain categories of the population, such as pensioners, to go through a simplified, out-of-court bankruptcy process. More than 12,000 people initiated this process in the first quarter of 2024 — more than five times the number of people who did so in the same period the previous year. The number of judicial bankruptcies rose by 18.2 percent to 89,800 over the same period.

Since Russia first gave individuals the right to file for bankruptcy in 2015, over a million Russians have declared themselves insolvent.