Russians Reacted In An Unexpected Way To The Restrictions On The Internet And Money Transfers

• 25.06.2026, 12:30

The banks were in an uproar.

Demand for cash has surged in Russia as Russians react to the restrictions imposed by the Kremlin. This is according to reports in the Russian media, as reported by Dialog.UA.

Russians have abruptly stopped depositing money in banks and now prefer to hold cash. Since the beginning of the year, the amount of cash in circulation has increased by 1.7 trillion rubles. That is 2.3 times more than in all of 2025.

Experts attribute this trend to issues with mobile internet connectivity, tighter controls on money transfers, and lower deposit rates (on June 19, the Bank of Russia cut its key rate to 14.25%).

This was also influenced by tax changes that made cash transactions more profitable for businesses. As a result, Russian banks are facing a severe shortage of available funds in 2026. According to preliminary data, the liquidity shortfall has already reached approximately 2 trillion rubles.

In May, the Central Bank of the Russian Federation raised its forecast for the banks’ liquidity shortfall in 2026 to 2.4–3.6 trillion rubles (previously 1.9–3 trillion rubles). Russian economists estimate that cash in circulation will increase by 1.5–2.1 trillion rubles.