A non-partisan research post - London
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Russians pull billions from banks over fears Putin will raid savings to pay for Ukraine war
Russians are pulling billions from banks in the country over growing fears that
Vladimir Putin could raid deposits to pay for his war against
Ukraine.
The first two weeks of August saw the volume of cash in circulation rise by 286.4billion roubles, or £2.5billion.
Every working day of August has seen Russian banks bleed cash, with the highest outflow of 56.8billion roubles, or £491.9million, recorded on August 12, according to central bank data.
It came after a record financial outflow of money in July, when more than 620billion roubles, the equivalent of around £5.4billion, were withdrawn.
This marks an outflow from the Russian banking system for a seventh consecutive month, according to central bank data.
Analysts cite escalating instability caused by Ukrainian drone attacks, economic pessimism and fears that the Kremlin could freeze deposits or impose a sudden cap on withdrawals.
Russians are also increasingly feeling the effects of Putin's invasion of Ukraine as Kyiv continues to launch drone attacks against Moscow's oil refineries and other economic targets.
The surge in cash demand has drained banks' rouble liquidity, prompting the Central Bank of Russia to expand lending to the banking sector.
Russians are pulling billions from banks in the country over growing fears that Vladimir Putin could raid deposits to pay for his war against Ukraine.
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