Russians shift back to cash after outages
Mobile internet outages and rising tax avoidance are pushing households and companies toward cash, officials said, adding strain to a slowing wartime economy.
Mateo Fernandez ·
Russians are increasingly relying on cash following recent mobile internet shutdowns and a rise in businesses seeking to dodge tax, officials said. Reaction pending.
Cash use rises after outages
Fiscal and economic pressure
Market and policy consequences Expect follow-up official statements and data updates by July 19, 2026, as authorities and industry groups respond to outages and report on cash-flow and revenue trends.
Officials said interruptions to mobile data have disrupted digital payments in cities and regions, prompting consumers to withdraw and keep physical currency. Business associations reported more firms are settling transactions off the books to reduce taxable income, officials added.
The shift toward cash complicates revenue collection and weakens visibility into economic activity, officials warned. That dynamic comes after more than four years of war with Ukraine, which policymakers have said has already slowed growth and reshaped public finances.
Analysts said the move can increase informal activity and reduce tax receipts, forcing tougher enforcement or higher rates elsewhere; officials said authorities face a trade-off between clampdowns and further business flight. The change also raises operational risks for banks and payment providers that rely on digital rails, officials noted.