Russia faces economic shifts as companies exit and cash withdrawals surge

The Russian economy is undergoing significant structural shifts as a result of the ongoing conflict in Ukraine. Since the invasion began, more than 500 international companies have withdrawn from the country, writing off assets totaling approximately $170 billion. These assets, including production facilities and infrastructure, were often sold to Russian buyers at massive discounts of 90% to 100% under strict government oversight and exit taxes.

Simultaneously, there is a massive surge in cash holdings among Russian households and businesses. Since the beginning of 2026, cash holdings have increased by approximately 2.1 trillion rubles (about €20.9 billion), marking the largest growth in cash assets since the war started. Sberbank predicts that cash circulation could continue to grow by more than €37.8 billion within the year.

Several factors drive this trend, including internet and signal disruptions caused by electronic warfare measures which interfere with banking apps and card payments. Additionally, citizens are withdrawing funds due to fears that the state may seize bank assets to fund military operations, and because many fleeing the country require physical cash to exchange for foreign currency abroad.