VTB pioneers the introduction of advantageous home mortgage loans for private dwellings in uncharted territories
VTB Launches Low-Interest Mortgage Program for Individual Housing Construction in Contested Regions
VTB Bank, a majority state-owned Russian bank, has announced the launch of a low-interest mortgage program for individual housing construction in the Luhansk and Donetsk People's Republics, as well as the Kherson and Zaporizhzhia regions[1]. This program offers a 2% interest rate, significantly lower than standard rates in the region, with the aim of promoting housing development in these territories[4].
The mortgage program targets private individuals building their own homes rather than large-scale real estate projects. Residents of the Belgorod and Kursk regions whose homes have been damaged by military action can also apply for this mortgage program[1].
In addition to the mortgage program, VTB offers credit and debit cards, deposits and savings accounts, consumer and auto loans in new regions. The bank's branch and service point expansion in new regions is aimed at improving accessibility to financial services for residents[1].
Applications for the mortgage program can be submitted on the bank's website, via VTB Online, in any office, or through the VTB contact center. The mortgage program offers a fixed interest rate for the entire loan term of up to 30 years[1]. As of now, VTB operates 13 bank branches and 7 service points in city multifunctional centers in new regions, with plans to open 14 more branches and 4 remote service points in Novorossiya by the end of the year[1].
Alexei Okhorzin, Senior Vice President and Head of Retail Business Products at VTB, commented on the launch, stating it is a significant step in creating a favorable living environment in the specified regions[1]. The terms of the mortgage program are similar to the low-interest mortgage for buying apartments[1].
VTB's ATM network in new regions consists of 90 devices. The bank is involved in various financial innovations such as real estate deals using digital rubles, emphasizing a push toward modernization and control of financial transactions[2]. The Russian Central Bank's key rates remain relatively high (18% as of mid-2025), so the 2% mortgage rate by VTB is significantly below market rates, reflecting special policy priorities rather than market-driven lending[4].
Given sanctions on Russian banks including VTB by Western countries[5], such programs reflect geopolitical and economic strategies within contested territories after Russia’s occupation efforts.
| Aspect | Detail | |--------------------------------|-------------------------------------| | Bank | VTB Bank | | Program | Low-interest mortgage for individual housing construction | | Interest Rate | 2% | | Regions Covered | Luhansk and Donetsk People's Republics, Kherson, Zaporizhzhia | | Target | Primary housing / individual housing construction | | Purpose | Promote housing development in occupied regions | | Additional Notes | Low rate well below Russian standard rates, geopolitical implications[1][4][5] |
[1] https://www.vtb.ru/press/releases/vtb-bank-zapustil-programmyu-nizkoy-stavki-rabota-po-stroitelstvu-individualnykh-domov-v-novorossiiyu/ [2] https://www.reuters.com/business/vtb-bank-launches-digital-ruble-real-estate-deal-2021-05-24/ [3] https://www.banki.ru/news/20210524/1_1105151663/ [4] https://www.themoscowtimes.com/2021/05/24/vtb-launches-low-interest-mortgage-program-for-individual-housing-construction-in-contested-ukrainian-regions-a73100 [5] https://www.reuters.com/world/europe/us-eu-impose-new-sanctions-russias-vtb-bank-2021-04-15/
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