# Russia Faces Bank Run and War Funding Crisis Increasing bank withdrawals and war funding issues threaten Russia's economy. - **Source:** [Fortune | FORTUNE](https://brifing.si/source/769282ef-327a-4454-909a-3c7936216004) - **Published:** 2026-08-23 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/3e95511b-597c-423d-96a3-06c960315828 ## Bank Run Begins Bank withdrawals in Russia have accelerated. In the first half of August, $3.4 billion was withdrawn. This follows $7.3 billion in July and $4.5 billion in June. People prefer to keep their money in cash rather than in banks. ## Cost of War Russia's invasion of Ukraine has lasted longer than expected, straining the economy. The budget deficit is growing, and the sovereign wealth fund is nearly depleted. Tax hikes and high inflation are burdening consumers. ## Support for Defense Industry Moscow directed banks to provide capital to the defense industry. However, many of these loans turned into bad debts. The loss of bank deposits has created a liquidity crunch, threatening war funding. ## Bond Market Collapse Russia's Finance Ministry halted bond auctions due to high borrowing costs and weak investor demand. Bond auctions were the main source of domestic borrowing to cover the budget deficit. ## Pension Funds May Be Seized Russia's Finance Ministry is preparing legislation to access $40 billion in pension savings held in privately managed funds. This is seen as a step to address the government's cash shortage. ## Debt Crisis Warnings Russian banks warned of a potential debt crisis as high interest rates strain borrowers' ability to repay. Many companies are described as being in a 'pre-default situation.' ## Military Mobilization Plans Parallel to Russia's financial troubles, military mobilization plans are on the agenda. The September 2022 mobilization caused thousands of men to flee to neighboring countries. A new mobilization is expected. ## Risk of Economic Shock Russia's financial situation could worsen with an economic shock. Measures such as sanctions against banks could trigger the current crisis. This threatens both Russia's economic and military performance. ## Sources covering this story - https://fortune.com/2026/08/23/russia-economy-bank-run-deposit-withdrawals-war-funding-military-mobilization/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._