(MOSCOW) – Russian citizens are withdrawing cash from the country’s banking system at a record pace, driven by fears the Kremlin may seize personal savings to fund its war effort. According to data released by the Central Bank of the Russian Federation, 2.1 trillion rubles ($23.3 billion / £17.7 billion / €21.1 billion) were removed from banks during the first seven months of 2026.
The regulator projects this figure will rise to nearly 4 trillion rubles ($44.4 billion / £33.7 billion / €40.2 billion) by the end of the year, a volume that signals a deep crisis of confidence in the national financial system. The mass withdrawal demonstrates a profound public distrust in the economic future of the Russian Federation.
The primary driver of the cash exodus is panic. Citizens are reported to be preparing for potential border closures or a new wave of general mobilisation, preferring to keep their assets in physical currency in case they need to flee. The sentiment is fuelled by the belief that the dictator Vladimir Putin could decide to nationalise private assets to support the ongoing war against Ukraine.
Prolonged internet shutdowns across various regions, including Moscow and St. Petersburg, have further accelerated the demand for cash. With online payment systems unreliable, citizens require physical money for daily transactions. Additional pressure comes from high taxation and widespread salary delays in industries left underfunded as the federal budget struggles with a deficit reported to be around 7 trillion rubles ($77.7 billion / £58.9 billion / €70.3 billion).
The Central Bank acknowledges it lacks the instruments to halt the withdrawals, a sign of the limited options available to the Kremlin as the economic consequences of the full scale invasion continue to mount.
Be First to Comment