A new way for Russia to cement its hold on Ukraine: dirt-cheap mortgages [Video]

Russia is debuting a rock-bottom mortgage rate with a catch: it’s only available if you live in a warzone.

In a press release on Wednesday, Russia’s VTB Bank announced a mortgage with a rate of 2%, fixed for as long as 30 years.

The rate applies only to the regions of Luhansk and Donetsk, which are mostly under Russian occupation.

The 2% mortgage is an economic anomaly — far cheaper than other borrowing.

The main interest rate there is 21%, with conventional mortgages around that mark as well. Inflation runs about 8%.

VTB said the borrowers could take loans of up to 6 million rubles, or roughly $61,000. Average salaries in Russia are around $10,000 a year.

VTB is mostly owned by the Russian state, and while it didn’t give a reason for the low rate, it aligns with other Russian efforts to cement its hold on occupied land. It did not respond to …