Russian citizens are withdrawing billions of roubles from banks due to fears that the Kremlin may seize deposits to fund the war in Ukraine. According to Central Bank data, over £9.5bn has been pulled from Russian banks since June, with a staggering £286.4bn withdrawn just during the first two weeks of August alone. The withdrawals are creating a severe liquidity crisis for Russian banks and damaging state finances, including forcing the Finance Ministry to cancel bond auctions intended to cover a budget deficit that has ballooned past $76bn. Analysts warn that the outflow could double what was seen during Russia's initial invasion in 2022, with major corporations also trying to shield assets from state regulators.
Written by the local model on 2026-08-19,
using this article's own text rather than the other coverage of the
same event (that is the story summary below).
Story summary
Russians are withdrawing billions of roubles from their banks due to fear that the Kremlin could seize private savings to fund the war in Ukraine. According to data from the Central Bank, over 286.4 billion roubles were withdrawn in the first two weeks of August alone, with a further 5.3 billion pounds withdrawn in July and 3.32 billion pounds in June. This panic is triggered by Ukraine's drone campaign against Russian oil infrastructure, which has knocked out 30% of Russia's refining capacity and caused a fuel crisis. Analysts warn that this could lead to a severe liquidity crisis for banks, which are already struggling with bad loans due to Kremlin directives. The cash withdrawals are so significant that they may double the total capital flight seen during the initial months of Russia's 2022 invasion. Taras Skvortsov, an executive at state-owned Sberbank, warns that "everyday wisdom is kicking in" and people prefer to keep their money at home rather than in banks where it may not be returned.
Written for “Russians Withdraw Bank Funds” on 2026-08-31,
grounded in this article and the 2 other(s) covering the same event.
Russian citizens are withdrawing billions of roubles from the country’s banks over fears that the Kremlin could seize deposits to fund the war in Ukraine.
uncertain
Kremlin → withdraw → Ukraine
Analysts say fears that the Kremlin could confiscate private savings to bankroll the conflict have triggered widespread panic, with more than 286.4bn roubles (£2.5bn) pulled from Russian banks during the first two weeks of August alone.
uncertain
roubles → say → August
A staggering £5.3bn was reported to have been withdrawn in July on top of a further £3.32bn in June, according to Central Bank data.
Taras Skvortsov, an executive at state-owned Sberbank, has warned that total capital flight this year could be double of what was seen during the initial months of Russia’s 2022 invasion.
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what → report → invasion
The cash run is creating a severe liquidity crisis for institutions already staggering under a mountain of bad loans— the result of Kremlin directives forcing banks to extend easy credit to military suppliers.
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run → create → suppliers
Skvortsov told The Washington Post: "Drones are flying.
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Drones → tell → Post
Things are burning down.
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Things → burn → ?
Nervousness is growing.
asserted
Nervousness → grow → ?
"Everyday wisdom is kicking in.
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wisdom → kick → ?
People feel they need cash under their pillow, not in banks where it may never be returned."
uncertain
it → feel → banks
Such panic is not limited to ordinary depositors.
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panic → limit → depositors
Major corporations are frantically trying to shield assets beyond the reach of state regulators, routing capital through brokerage accounts in Kazakhstan, Kyrgyzstan, and Armenia to reach global markets.
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corporations → try → markets
The outflow has directly damaged state finances.
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outflow → damage → finances
With banks short on cash, the Finance Ministry was forced to cancel vital bond auctions intended to cover a budget deficit that has already ballooned past $76bn.
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that → force → 76bn
"Great powers don’t have repeated treasury bond failures in the middle of a war," Harvard scholar Craig Kennedy, told The Washington Post, describing the failure as a stark sign of "imperial overreach."
Fears have been heightened by Ukraine’s relentless drone campaign against Russian oil infrastructure, which has knocked out over 30 per cent of the nation's refining capacity and triggered a chaotic domestic fuel crisis.
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which → repeat → crisis
Meanwhile, high-profile asset seizures have convinced elites that no one is safe.
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one → convince → elites
The state recently confiscated £5.6bn from agricultural tycoon Vadim Moshkovich, adding to the more than £36bn in private assets seized over the past year.
"If the government needs cash, Putin will just do a grab for assets," said an associate of one Russian billionaire.
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associate → confiscate → billionaire
"He doesn’t care.
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He → care → ?
And that’s where I think it’s heading."
The fiscal strain is now putting pressure on the state officials.
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strain → ’ → officials
Earlier this week, Andrei Klepach, chief economist at state bank VEB, was abruptly fired after he warned that Russia “could not win” a prolonged war of attrition against a Western-backed Ukraine.
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Russia → fire → Ukraine
“We’re under the illusion that everything [in Ukraine] will collapse.
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everything → ’re → Ukraine
It hasn’t, and it won’t.
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it → have → ?
Meanwhile, the costs we bear are mounting,” Klepach said.
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Klepach → bear → ?
The former economist’s words appear to ring true, with a widening budget deficit, collapsing bond sales, and record capital flight laying bare the immense financial toll of the conflict.
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deficit → appear → conflict
The message to the Kremlin from within its own establishment is clear: Russia cannot afford to keep escalating its military spending.
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Russia → afford → spending
In an extraordinary intervention, Moscow’s powerful mayor, Sergei Sobyanin, issued a stark public warning against raiding from the civilian sector to fund the war effort.
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mayor → issue → effort
"To kill the civilian economy," Sobyanin warned, "is to kill the country itself."
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Sobyanin → kill → country
