WP: Russians pulling billions from banks at record pace amid Ukrainian drone attacks

Russians are pulling billions from the country's banking system ― a record cash outflow amid intensifying Ukrainian drone attacks and rising fear that the authorities may start seizing deposits to finance the war, Report informs referring to The Washington Post.

Nearly $3.4 billion (286.4 billion rubles) was withdrawn in the first two weeks of August, on top of the $7.3 billion withdrawn in July and more than $4.5 billion in June, according to Russian Central Bank data.

Total withdrawals this year could nearly double the amount taken out in the first year of Russia's full-scale invasion of Ukraine, according to Taras Skvortsov, a senior executive at Sberbank, Russia's biggest retail financial institution.

The withdrawals are causing liquidity problems, according to Skvortsov and a former senior Russian finance official, overstretching a financial sector already strained by increasing levels of bad debts following a government-directed lending boom to ramp up military output.

"Drones are flying. Things are burning down. Nervousness is growing. And people"s everyday wisdom may be kicking in that they need to have cash under their pillow and not somewhere in banks where it may never be returned," said the former finance official, who like others spoke on the condition of anonymity to discuss sensitive issues.

"For some banks this really is a problem," the former official said. "They didn't expect this and they invested all the cash elsewhere, and yet people are coming and taking out half a trillion rubles a month."

Alexandra Prokopenko, a former adviser to the Russian Central Bank, said the withdrawals reflected deepening fear among the Russian public.

"It means people have no trust in the Russian banking system or in the Russian financial system," Prokopenko said. "This is all a consequence of the fear that the government will do something with the banking system, that it could nationalize deposits."

She said she believed that such a nationalization was unlikely but added, "I would not exclude that the authorities could impose limits on withdrawals."

The total siphoned out this year already exceeds the $24.7 billion (2 trillion rubles) removed in the first year following the February 2022 invasion.

In the first two weeks of the invasion, $23 billion fled the system, and banks appeared to be imperiled by depositors and businesses lining up to empty their accounts, until the government stemmed the drain by imposing tough capital controls and sharply raising interest rates.

Now, big businesses are also seeking to move money out of the reach of Russian regulators as anxiety grows over potential asset seizures. That is further exacerbating the problems, the former official said.

In all, more than $9.4 billion was transferred out of Russia in the second quarter of 2026, according to Central Bank data.