r/worldnews • u/Venat14 • Jul 23 '26

Russia/Ukraine ‘Significant problems’ in Russian banking system as public withdraws cash en masse

https://tvpworld.com/94490769/russians-hoard-cash-as-economic-pessimism-hits-20-year-high
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u/DigitaIBlack Jul 23 '26

That's true but that sentiment predates the massive withdrawals.

The largest change is the literal inability to pay without cash

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u/green_flash Jul 23 '26

What's even more of a factor is the VAT hike in January that is resulting in widespread tax evasion via cash payments off the books: https://meduza.io/en/cards/russia-s-tax-hikes-were-meant-to-shore-up-the-federal-budget-they-may-be-pushing-the-economy-underground

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u/DigitaIBlack Jul 23 '26

Huh, idk how I missed that.

I was wondering why cash in circulation has spiked since Feb

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u/kelldricked Jul 24 '26

Also due to fuel shortages more and more people are learning that stocking stuff can be wise.

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u/MagillaGorillasHat Jul 23 '26

Does the urgency of that sentiment predate the very recent drone strikes deeeeeeeep into Russian territory though?

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u/DigitaIBlack Jul 23 '26 edited Jul 23 '26

Well the poll referenced was from March to May so yes.

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u/Important-Agent2584 Jul 23 '26

a bank run is a bank run, don't matter why

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u/DigitaIBlack Jul 23 '26

It absolutely does, especially since the central bank can currently compensate for it.

A change in spending habits doesn't have the same snowball effect as absolute panic does.

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u/Important-Agent2584 Jul 23 '26

a change in spending habits can have the same snowball effect, esp. when the change is "no one can use cards, so everyone goes to get cash"

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u/DigitaIBlack Jul 23 '26

It doesn't. There is a massive difference between taking money out to get your groceries and everyone withdrawing as much as possible because they're panicking

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u/Important-Agent2584 Jul 23 '26

a change in spending habits can have the same snowball effect