MOSCOW: Russians are increasingly returning to cash transactions as repeated mobile internet shutdowns disrupt digital payment systems and businesses struggle with mounting financial pressures more than four years into the war with Ukraine.
According to figures released by the Central Bank of Russia and analyzed by the BBC, approximately 1.56 trillion roubles (around $20 billion) have been added to cash circulation since the beginning of the year. It marks the largest increase for the same period outside the COVID-19 pandemic.
Internet Shutdowns Affect Digital Payments
The rise in cash usage comes as Ukrainian drone attacks have prompted Russian authorities to repeatedly suspend mobile internet services across various regions.
Officials say the internet restrictions are intended to prevent and counter drone attacks. However, the shutdowns have also disrupted mobile banking services and card payment systems, forcing many consumers and businesses to rely on cash for everyday transactions.
Russians Seek Financial Security
Many residents say carrying cash has become a practical precaution against unexpected communication outages.
A Moscow resident told the BBC that keeping cash provides a sense of security during emergencies.
“If the mobile network goes down, I know I can still buy food and other basic necessities,” she said.
Businesses Also Favor Cash
Analysts believe the renewed demand for cash is not only linked to internet disruptions but also reflects growing economic pressures on businesses.
Some companies are increasingly relying on cash transactions to reduce operating costs and avoid tax obligations as Russia continues to face sanctions and economic challenges related to the prolonged conflict with Ukraine.
Economic Challenges Continue
The increase in cash circulation highlights broader shifts in Russia’s financial landscape as businesses and consumers adapt to wartime conditions.
Economists say the trend underscores how security measures and economic uncertainty are reshaping payment habits in one of the world’s largest economies.
While digital payments remain widely used, experts believe cash is likely to retain a stronger role if internet disruptions and financial uncertainty continue in the months ahead.
