Russia’s economy is coming under increasing pressure as the war in Ukraine continues, prompting Russians to withdraw billions of dollars from banks. Depositors pulled out nearly $3.4 billion in the first two weeks of August, on top of around $11.8 billion withdrawn in June and July.
The growing cash withdrawals are raising concerns about confidence in Russia’s banking system. People are reportedly becoming worried that keeping money in banks may not be safe and are choosing to hold more cash at home.
Russian banks are already facing pressure from rising bad debts and heavy lending linked to the wartime economy. At the same time, businesses are moving money out of the country. Russia’s Central Bank reported that more than $9.4 billion left Russia in the second quarter of 2026.
The capital flight comes at a difficult time for the Kremlin, which needs huge amounts of money to finance the war while dealing with a growing budget deficit. Russia has also faced difficulties raising funds through government bond sales.
If the war continues for a longer period, the pressure on Russia’s banks, government finances and wider economy could increase further.
