Kathrine Frich
Russia’s economy continues to suffer the prolonged war in Ukraine places pressure on everyday life.
Years of sanctions, disruptions and tighter state controls are now filtering down to ordinary citizens, reshaping how people access and use their money.
Cash surge
According to The Moscow Times cited by Onet, Russians withdrew more than 1.6 trillion rubles from bank accounts in January 2026, roughly $17 billion at current exchange rates.
The figure is the highest level since March 2022, shortly after the full-scale invasion of Ukraine began, when withdrawals reached 2.1 trillion rubles.
At the same time, only about 468 billion rubles, or around $5 billion, flowed back into fixed-term deposits, according to Russia’s central bank data cited by the outlet.
Growing anxiety
The shift toward cash reflects rising concern over blocked bank cards and repeated mobile internet outages.
In total, the banking system saw a net outflow of about 1.1 trillion rubles, or approximately $12 billion, in January alone.
Analysts say such behavior points to declining trust in digital payments and financial institutions. One expert noted that similar public sentiment has not been seen in Russia since the early 2000s.
Pressure builds
Economists warn that if withdrawals continue at this pace, it could destabilize the banking sector and add to inflationary pressure.
The report also highlights growing government scrutiny, including tax monitoring of “suspicious” transactions, which has added to public unease over personal finances.
Separately, authorities and banks have discussed limiting certain cash withdrawals under anti-fraud measures.
Daily disruptions
Millions of Russians have faced temporary card or account restrictions, The Moscow Times reported, affecting up to 2–3 million people in early January.
At the same time, widespread internet outages, ongoing since last year, have disrupted access to online banking and digital payments across dozens of regions.
In Moscow, outages have intensified since early March, affecting more than 20 districts.
Life offline
Everyday transactions have become more difficult, with residents reporting problems paying in cafes, using parking apps or accessing navigation tools.
Legal expert Sarkis Darbinian told Novaya Gazeta that the disruptions are tied to security concerns linked to the war, including fears of drone attacks.
As digital systems falter, many Russians are turning to cash as a more reliable way to manage their money in an increasingly uncertain environment.
Sources: The Moscow Times, Onet.
