Russians turn to cash putting more strain on slowing wartime economy
Russian citizens are increasingly relying on cash as mobile internet shutdowns and economic instability disrupt digital payment systems. This shift complicates government tax collection efforts amid a slowing economy and the ongoing war in Ukraine.
Why it matters
The return to cash indicates a loss of faith in digital infrastructure and highlights the economic strain caused by wartime conditions and sanctions.
Share Save Add as preferred on Google Evgeny Pudovkin and Daria Mosolova , BBC Monitoring Anadolu via Getty Images There have been several surges in cash withdrawals as Russians seek a buffer against uncertainty Russians are returning to cash, as mobile internet shutdowns disrupt card payments, and more businesses seek to dodge tax under mounting financial pressure more than four years into the war with Ukraine.
Russia has added 1.56tn roubles (£14.8bn; $20bn) in cash into circulation since the start of the year - the biggest rise for the equivalent period in any year outside the Covid-19 pandemic, according to Central Bank figures analysed by the BBC.
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