Russia experiences surge in cash demand

Cash demand in Russia is rising at its highest rate since the beginning of the war in Ukraine. In 2026, households and businesses have already increased their cash holdings by 2.1 trillion rubles, approximately 21.6 billion euros.

Sberbank projects that the total cash circulation in Russia could increase by roughly 3.8 trillion rubles (about 38.9 billion euros) by the end of 2026, which would represent the largest annual increase ever recorded.

Several factors are driving this trend. Technical disruptions caused by authorities jamming mobile signals to counter Ukrainian drone attacks have led to failures in card terminals and banking apps. Additionally, there is growing uncertainty regarding the security of private savings. This follows suggestions from Communist Party leader Gennadi Syuganov to utilize bank deposits for production or war efforts, despite government assurances that private funds would remain untouched. Other drivers include increased transactions outside the official economic cycle.