Russia's Sberbank warns banks lack funds to finance Putin's war budget

Sberbank chief financial officer Taras Skvortsov said Russian banks have exhausted most of their liquid ruble reserves, with cash outflows of about 2 trillion rubles since the start of 2026. Because of this, banks are focusing on lending to companies and households and cannot buy government OFZ bonds, which the finance ministry halted auctioning in July after prices fell and yields rose.

The federal budget recorded a 5.7 trillion‑ruble deficit in the first half of 2026, driven by war‑related spending that exceeds original plans by 4‑5 trillion rubles. To cover the shortfall, the ministry may need an additional 2‑3 trillion rubles from the domestic market, but the main buyers—state‑linked banks—have little capacity left. Banks that held OFZ bonds reported losses of roughly 200 billion rubles after re‑valuation.

The Central Bank of Russia has stepped in, injecting 2.3 trillion rubles into the banking sector since the year began, bringing total bank debt to the regulator to about 6 trillion rubles. Analysts warn that without further state support, the Russian banking system may be unable to finance the growing fiscal gap caused by the war.