The Russian President has issued a new decree that expands the possibilities of maternity capital.
Money allocated to large families can be spent on individual housing construction (IHC) through the escrow account mechanism.
Vladimir Putin signed this decree on Monday, July 22. The document is posted on the website of legal acts.
The federal law will come into force on March 1 next year.
Russians will be allowed to direct maternity capital to an escrow account, the beneficiary of which is a legal entity or individual entrepreneur engaged in the construction of an individual life insurance facility.
Car for maternity capital
Deputies periodically consider new options for using maternity capital.
A bill will be introduced to the lower house of parliament that allows large families and families with disabled children to use maternity capital to purchase a car.
But the deputies’ initiative only applies to those vehicles that were produced in the Russian Federation.
In addition, the law prohibits owners of such a vehicle from selling the vehicle for 5 years after purchase.
