Russians pull billions from banks fearing Kremlin will seize savings for war

Key Points:

• Russians withdrew approximately €24.4 billion from the banking system in the first seven months of 2026 amid fears of Ukrainian drone strikes and potential government seizure or freezing of private deposits to fund the war in Ukraine.
• Five of Russia’s seven largest banks experienced significant net outflows, with Gazprombank losing €3.04 billion and Rosselkhozbank shedding over €2.75 billion in deposits.
• The total cash in circulation surged by €6.53 billion in July alone, the largest monthly increase this year, reflecting growing demand for physical currency.
• The withdrawal trend is fueled by concerns over financial instability due to drone attacks and recent government asset seizures, including $44.3 billion in private assets last year and $6.5 billion linked to billionaire Vadim Moshkovich.
• Russia’s economic outlook is weakening, with GDP growth slowing to 0.3% in the first half of 2026, and dissent among officials growing as the war’s costs mount and prospects for victory dim.