Marta Gichko09:20, 02.07.26

The head of Russia’s largest state bank has warned of falling investment, high interest rates and the risk of a deep economic crisis.

The head of Russia’s largest state-owned bank, Sberbank, German Gref, has publicly called for an immediate end to the fighting in Ukraine, saying that the protracted war is putting increasing pressure on the Russian economy.

In an interview with Russian state television, quoted by The Moscow Times , the banker noted that the consequences of the war are already being felt by ordinary Russians.

“I don’t believe there is anyone in this country whose main concern is anything other than ending hostilities as soon as possible,” Gref said.

According to the banker, the full-scale war that has been going on since February 2022 has led to a sharp increase in interest rates, fuel shortages, and a worsening economic situation. Gref emphasized that the Russian economy will not be able to function for a long time in conditions of extremely high interest rates.

“The economy simply cannot survive for a long period under the weight of extremely high real interest rates,” he said.

He also criticized the government’s monetary policy, calling it “absolutely irrational,” and called for lowering the key rate.

According to him, the economy is already “overcooled”, and further maintenance of high rates will only deepen the crisis. Gref reported that investments in the Russian economy have already decreased by more than 14%, and this year may decrease by another 3%.

Among other negative consequences, he mentioned falling wages, job losses, and problems in the fuel market, which, in particular, are being exacerbated by Ukrainian drone strikes on Russian energy infrastructure.

The Russian Central Bank raised its key rate to 21% in late 2024, its highest level in two decades. Although it was later lowered to 14.25%, the regulator warned that inflation, budget deficits, and instability in the fuel market could keep rates high for a long time.

(c)UNIAN 2026