Russia’s Central Bank records capital outflows for five months – CCD

As reported by Ukrinform, the Center for Countering Disinformation at the National Security and Defense Council of Ukraine stated this on Telegram.

“Households and businesses withdraw more money from banks each month than they deposit. At this point, banks have already lost 1 trillion rubles, and the monthly volume of withdrawn funds continues to grow. Russian media are attempting to explain this tendency by mobile web outages, claiming that people have begun to use cash more frequently. However, in reality, the reasons for the outflow of funds from banks are much broader,” the statement reads.

It is noted that the main reasons for the outflow are the deterioration of the economic situation amid the ongoing war and sanctions, declining deposit rates, falling household incomes, and increasingly negative business expectations. The more Russian propaganda diverges from daily reality, and the more aggressively the authorities pressure businesses to extract additional resources for the war, the less trust Russians have in the banks and the state.

The CCD emphasized that despite all of the Kremlin’s efforts to create an illusion of prosperity, the continuation of the war against Ukraine is driving the Russian economy deeper into crisis.

As reported by Ukrinform, the freight transport market in Russia is experiencing its most severe crisis in 17 years. Nearly 6,700 transport companies are already undergoing bankruptcy or liquidation.

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