Russians Pull €24.4B From Banks in 7 Months as War Fears Mount

Russian savers are pulling cash from banks at a record pace. In the first seven months of 2026, approximately €24.4 billion left the banking system, according to data from Russia’s Central Bank and the financial marketplace Banks.ru. The exodus reflects deepening fear that the Kremlin will freeze or seize private deposits to fund its war in Ukraine. Withdrawals are now on track to nearly double the €24.7 billion pulled in 2022.

The scale of the bank run

Monthly outflows have accelerated sharply. In June, Russians withdrew nearly €4 billion. July saw €6.5 billion leave accounts. In the first two weeks of August alone, €3 billion was withdrawn, according to Central Bank data cited by Handelsblatt. Banks.ru data shows roughly €3.05 billion leaves accounts every month on average. This pace far exceeds the early months of the 2022 invasion.

Which banks are losing deposits fastest

Five of Russia’s seven largest banks have recorded net outflows. Gazprombank lost €3.04 billion, or 10.8% of total deposits, over four months. Rosselkhozbank shed €2.75 billion, a decline exceeding 15%. Alfa-Bank, Russia’s largest private lender, lost €1.82 billion or 5.6% of deposits. Sovcombank and VTB recorded further outflows of €830 million and €207 million respectively. Sberbank initially held steady but lost €2.15 billion in June alone. T-Bank was the only exception, gaining €1.96 billion in deposits.

Why Russians fear government seizure

The Kremlin has already seized private assets to fund the war. Between 2022 and end of 2025, Russia verstaatlicht assets worth 6.5 trillion rubles, roughly €72 billion at the time. A former senior Russian finance official told the Washington Post: “Drones fly. Things burn down. Nervousness grows. People prefer cash under their pillow to money in banks where it may never come back.” Economist Alexandra Prokopenko warned that authorities could introduce withdrawal limits. Ukrainian drone strikes on oil refineries and logistics infrastructure have also prompted internet blackouts, disrupting card payments and forcing Russians to keep physical cash.

Impact on Russia’s war financing

The bank run is crippling the Kremlin’s ability to fund the war. Liquidity problems are forcing banks to call in loans and halt new lending. The Finance Ministry has cancelled planned government bond sales. Yields on ten-year Russian state bonds have surged to 17%, reflecting investor panic. The cash exodus directly reduces the pool of deposits banks can lend to the state, forcing Moscow to seek alternative funding sources or cut spending.

Final Thoughts

Russia faces a vicious cycle: war costs drive seizure fears, which trigger bank runs, which starve the state of funding and force it to consider the very seizures Russians fear. This loss of confidence in the financial system poses a systemic risk to Russia’s economy and war effort.

FAQs

Disclaimer:

The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.