Russians are pulling billions of dollars out of their bank accounts as fears grow that the government could eventually take private money to help pay for Vladimir Putin’s war in Ukraine. The withdrawals come as the war appears to be putting more pressure on Russia’s economy , with Ukraine stepping up attacks deep inside Russian territory.
Projected Capital Flight in Russia to Double by 2026
Sberbank’s senior executive, Taras Skvortsov, has warned that total capital flight from Russia could potentially double by 2026 compared to the initial wave of withdrawals observed after the 2022 invasion of Ukraine. This anticipated increase poses significant challenges for Russian banks, which must maintain sufficient liquidity to accommodate customer withdrawals.
A former Russian finance official, speaking to The Washington Post, highlighted that escalating domestic unrest is contributing to public anxiety. This growing uncertainty is leading many individuals to prefer keeping their cash at home rather than in banks, driven by fears of not being able to access their funds in the future.
The official said people are now withdrawing around half a trillion rubles, or about $5.9 billion, every month. Fresh figures from Russia’s Central Bank showed that more than $9.4 billion left Russia during the second quarter of 2026 alone. The cash withdrawals are not limited to ordinary Russians. Large businesses are also moving money out of the country.
Because it needs large amounts of money to keep financing the war, this wider capital flight is creating another problem for the Russian government. Because military spending has risen sharply, russia’s government is already dealing with a large budget deficit, partly. Because there was not enough demand or available cash in the market, according to the report, but the government recently faced a major setback when it cancelled planned bond sales. Because of its large network of warehouses and other facilities across Russia, the company has increasingly become a target of Ukrainian attacks.
At the same time, the Russian economy is struggling to maintain strong growth, making it harder for the government to raise enough money through normal economic activity. The Russian Finance Ministry depends heavily on selling government bonds to raise money and cover the budget gap. The difficulty in selling bonds shows how the capital flight could directly affect the Kremlin’s ability to raise money for its growing wartime expenses. The situation could become even more serious if Russia’s war in Ukraine continues as a long war of attrition, putting further pressure on government finances and the wider economy. Some people close to Russia’s wealthy business community fear that the government could eventually turn to private assets if it needs more money. Wildberries is one of Russia’s biggest online shopping companies and is often compared with Amazon in the United States.
On Sunday, Ukraine launched a large drone attack against Russia that set fire to another Wildberries facility and killed six people, according to the Daily Beast.
