Russian banks on the brink of collapse due to Putin’s war in Ukraine – The Telegraph

Every third ruble spent by Moscow goes to military needs.

Russian banks are seeking help from Moscow as borrowers seek to repay loans in a war-torn economy . At least three of the country’s largest banks are considering a state bailout, The Telegraph reports .

Such actions are a sign that the country is struggling under the pressure of the Russian invasion of Ukraine.

Officials have reportedly ordered banks to avoid disclosing the full extent of bad loans and instead restructure their reporting to present a better picture. However, media reports suggest that this tactic is likely to run out of steam, which is why the banks need Moscow’s support.

“Russia’s economy is under pressure from the costs of Vladimir Putin’s war in Ukraine, sanctions imposed by Western countries, the loss of manpower both in the armed forces and through flight abroad, and falling oil prices, which threatens a critically important source of revenue for the government,” the publication recalled.

According to official estimates, the Russian economy grew by 4.3% last year. According to The Telegraph, every third ruble spent by Moscow goes on military needs.

Meanwhile, spiraling food prices and labor shortages have also pushed inflation into double digits, with ordinary Russians struggling to afford some of their most basic necessities, with even potatoes in short supply in Russia.

“The central bank is trying to control the situation, despite keeping interest rates at 20 percent. Government finances are also under pressure from large bonus payments and high salaries for soldiers, although they help support military family budgets even in conditions of rapid inflation,” the material explained.

In turn, Russia’s revenues from oil sales also fell by a third compared to last year.

According to Goldman Sachs analysts, the ruble will depreciate by 30% against the dollar this year, which is expected to lead to a further increase in the cost of imports into Russia.

“More pressure is mounting. Donald Trump is threatening to impose 100 percent tariffs on US imports from countries that trade with Russia unless Putin agrees to a deal on Ukraine, threatening to further isolate the rogue nation from the global economy,” The Telegraph concluded.

(C)UNIAN 2025