Russians turn to cash, putting more strain on slowing wartime economy
Russians are returning to cash, as mobile internet shutdowns disrupt card payments, and more businesses seek to dodge tax under mounting financial pressure more than
Russians are returning to cash, as mobile internet shutdowns disrupt card payments, and more businesses seek to dodge tax under mounting financial pressure more than four years into the war with Ukraine. Russia has added 1.56tn roubles (£14.8bn; $20bn) in cash into circulation since the start of the year - the biggest rise for the equivalent period in any year outside the Covid-19 pandemic, according to Central Bank figures analysed by the BBC.
The spike comes amid a wave of Ukrainian drone attacks, which have repeatedly led the Kremlin to shut down mobile internet across large swathes of the country, leaving many unable to pay by card. The government says the aim of the shutdowns is to counter the drone strikes.
"Having cash on hand gives you some sense of control and security," one woman in Moscow told the BBC on condition of anonymity. "If there's
an emergency in the city, I know I'll still be able to buy basic necessities, even if the mobile network goes down."
The BriefWire