Russian economy meltdown deepens as banks could soon run out of cash

Russia’s economic outlook could worsen significantly, as local banks may soon run out of liquidity in the event of a crisis.

The Center for Macroeconomic Analysis and Short-Term Forecasting (CMASF), a think tank with close ties to Russian authorities, has warned that the risk of a “deposit flight” is growing more likely.

The warning comes amid soaring inflation and interest rates that have climbed to 21%. While recent U.S. tariffs don’t directly target Russia, they are nonetheless having ripple effects across the domestic economy.

According to the CMASF, “geoeconomic instability” could spark a “panic reaction” among depositors, potentially leading to widespread withdrawals.

Since the start of the war in Ukraine, Russia has been under heavy Western sanctions, which continue to cut deeply into its oil and gas export revenues — a key pillar of the country's economy.

(QG - Source: Newsweek — Picture : © Pixabay)