Russians Yank Record Cash From Banks as Fear of Kremlin Grows

Russians Yank Record Cash From Banks as Fear of Kremlin Grows

Russians are pulling record amounts of cash from their banks, worried that the Kremlin may use their savings to fund the war in Ukraine, according to the Wall Street Journal.

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The rush to withdraw money has raised concerns about the stability of Russia’s banking system. Torbjörn Becker, head of the Stockholm Institute of Transition Economics, says a loss of public trust in banks could trigger a financial crisis. “Those of us who follow Russia have been talking about this for a long time,” Becker said [223471]. The development comes as Western sanctions continue to pressure Russia’s financial system [221981]. Andrey Klepach, one of Russia’s most prominent economists, was removed from his post as chief economist at the country’s national development bank days after a speech he gave became public, in which he reportedly said the war in Ukraine is damaging Russia’s economy [221981]. Russia’s state news agency TASS confirmed on Sunday that Klepach “no longer holds the position” at the bank, without providing a reason for the change [221981]. His removal marks one of the most visible career consequences for a senior Russian official publicly acknowledging the war’s financial toll [221981].

Sources

Russians Pull Record Cash From Banks as Fear of Kremlin Grows #223471Russian Economist Sacked After Warning War Is Hurting Economy #221981

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