Cash Returns as Russia's Wartime Economy Slows
Russians are pulling more cash from circulation as mobile internet shutdowns disrupt card payments and a slowing economy squeezes finances. The government has raised VAT to 22% and tightened thresholds for SMEs, pushing some firms to operate in the shadows and making tax collection harder while banks still attract deposits with high interest; a surge in cash use—including transfers to under-the-table wages—reflects a desire for a financial buffer amid uncertainty and wartime pressures.