Home›Forex›EM Currencies›Russians withdraw about 24.4 billion euros from banks…

Russians withdraw about 24.4 billion euros from banks amid war-funding fears

Outflows have reached 300 billion roubles per month on average since early March, while multiple major lenders report net individual-deposit outflows.

Reported · Written up by our desk · EM Currencies

Russians have withdrawn roughly 24.4 billion euros from the banking system in the first seven months of the year, as fears mount that the Kremlin could freeze or nationalize private deposits to help finance the war in Ukraine, Euronews reports.

According to the report, the cash drain has accelerated alongside increased demand for cash since early March, with about 300 billion roubles, or around 3.05 billion euros, leaving Russian bank accounts each month. The concern extends to domestic liquidity, as deposit outflows would tighten funding at banks already facing heavy state-directed lending to defense industries.

Data cited from Banks.ru shows net outflows at individual-deposit levels across most of the largest lenders, with Gazprombank seeing the steepest move, losing close to 3.04 billion euros, or 10.8% of deposits, over four months. Rosselkhozbank has shed more than 15% of its deposit base, Alfa-Bank has lost around 1.82 billion euros, or 5.6%, and VTB and Sovcombank also recorded outflows.

The piece also links the strain to broader signals of mounting financial pressure, including widening budget deficits and collapsing bond issuance, and notes that a senior state economist was dismissed after publicly questioning Russia's ability to sustain the war.

More like this

Sources