Ukraine war threatens Russian banking crisis
Russia’s banking system – on which the state depends to support growing debt as the cost of war drains state coffers – is in danger of collapse, according to a European intelligence report
President Vladimir Putin
Facing a 21st package of EU sanctions
ECONOMIC GROWTH
Revised down
2026
0.4%
Was 1.3%
2027
1.4%
Was 2.8%
MASSIVE CASH WITHDRAWALS Billion rubles
Bank of Russia forced to revise liquidity requirements of financial system
600
400
200
0
160
300
607.3
386.2
449.7
FEB
MAR
APR
MAY
JUN
Held as physical cash
17.7 trillion
Total 20.09tn
88% of country’s entire cash supply
May 2026
HOUSEHOLD DEBT Trillion rubles
Record 568,000 personal bankruptcies in 12 months
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q1
Q2
Q3
Q4
2022
2023
2024
2025
2026
0
10
20
30
40
27.6
28.3
27.9
29
30.2
32.8
31
35.6
37.3
38.4
40.6
42
42
41.5
42.3
41.7
43.3
43.6
FINANCIAL ORGANISATIONS’ DEBT Trillion rubles
Debt securities
Loans
0
5
10
15
20
25
2022
2023
2024
2025
2026
Subsidised loans to defence companies and homebuyers, with state-backed credit, loan restructurings and government support, masking banks’ vulnerability
Sources: Reuters, Bank of Russia, Ministry of Finance
Picture: Getty Images
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