(MOSCOW, RUSSIA) – Russians withdrew a record amount of cash from banks in 2025, marking the largest annual increase in cash withdrawals in more than a decade, according to reporting by the Moscow Times. The surge reflects growing public distrust in the banking system and increasing concern over economic stability as the war against Ukraine continues.
An estimated one trillion rubles were added to cash circulation during the year, equivalent to roughly about 10 billion US dollars at current exchange rates. Most of these withdrawals took place in the final quarter of the year, a period marked by mounting economic pressure, tighter controls on financial transactions and worsening conditions linked to the war.
Earlier in January, around three million Russians reportedly lost access to their bank cards within a matter of weeks. The restrictions were widely seen as an attempt by the Kremlin and the Russian banking system to limit withdrawals and preserve liquidity. Instead, the measures appear to have intensified public anxiety and accelerated the move towards holding cash outside the banking system.
The Moscow Times reported that the scale of withdrawals in 2025 exceeded any comparable period in the past ten years. Economists note that such a sharp increase in cash circulation is typically harmful to monetary stability, signalling a loss of confidence in financial institutions and in state guarantees.
A key factor driving the surge in withdrawals has been the rise in internet shutdowns across Russia. In 2025, Russia became the world’s leading country for internet disruptions, often imposed without clear public explanation. These shutdowns made online payments unreliable, prompting many people to withdraw cash to cover everyday expenses.
The restrictions produced unintended consequences. While authorities sought to limit the spread of information and reduce online coordination, the lack of reliable digital services pushed more citizens towards physical cash, further straining the banking system.
Analysts say the trend reflects a breakdown in the long standing informal understanding between the Russian state and the population. For years, many Russians accepted limits on political freedoms in exchange for economic stability and predictability. That balance has been severely undermined by the war, sanctions and domestic controls, leaving many citizens feeling that sacrifices are no longer compensated by security or stability.
According to available data, about 80 percent of all cash withdrawals in 2025 occurred in the final quarter of the year. This period coincided with significant geopolitical setbacks for Russia, continued fighting along the front lines in Ukraine and growing public awareness of discrepancies between official statements and realities on the ground, including developments around Kupiansk.
To meet rising demand for cash, support struggling banks and cover widening gaps in the federal budget, the Russian authorities were forced to sell off a large share of the country’s gold reserves. By late 2025, around three quarters of the gold held in the National Wealth Fund had reportedly been sold. This represents a sharp acceleration compared with previous years, when gold sales were more limited.
The proceeds from these sales have been used primarily to finance the federal budget and to stabilise banks affected by heavy withdrawals. Critics note that this effectively means converting long term reserves into short term funding, much of which is directed towards sustaining the war effort.
At the same time, the Kremlin has tightened oversight of bank customers, introducing additional checks and expanding lists of so called suspicious behaviour. Ordinary withdrawal activity has increasingly been treated as potentially illicit, creating delays and restrictions for customers seeking access to their own funds.
Despite these measures, demand for cash has continued to rise. Financial observers describe the situation as a cascading set of problems within the Russian economy, where attempts to control one area produce negative effects elsewhere. The combination of capital controls, digital restrictions and wartime spending has placed unprecedented strain on financial institutions.
The broader picture points to deepening internal pressure within the Russian Federation. With reserves being depleted, banks under stress and public trust eroding, economists warn that the system faces growing vulnerability.
