Putin Hit with Humiliating New Crisis

Russian President Vladimir Putin is facing another potentially serious headache at home as nervous Russians pull billions of dollars out of the country’s banks amid growing fears over the war in Ukraine and the stability of the economy.

Depositors reportedly withdrew nearly $3.4 billion from Russian banks during just the first two weeks of August, following another staggering $11.8 billion pulled out during June and July.

The sudden rush for cash comes as Ukraine steps up attacks inside Russia, targeting energy facilities, warehouses and other infrastructure while ordinary Russians are already dealing with disruptions including a growing fuel crisis.

For Putin, the timing could hardly be worse.

Taras Skvortsov, a senior executive at Russia’s massive Sberbank, reportedly warned that the amount of money leaving the banking system this year could eventually reach twice the level seen during the first wave of withdrawals following Russia’s 2022 invasion of Ukraine.

The withdrawals are creating fresh pressure for Russian banks, which are already struggling with bad debts while simultaneously being pushed to support a wartime economy heavily focused on military production.

One former Russian finance official told The Washington Post that fear is beginning to spread among ordinary citizens as Ukrainian drones strike deeper inside the country.

“Drones are flying. Things are burning down. Nervousness is growing,” the former official said, suggesting Russians may increasingly prefer keeping cash at home rather than trusting banks with their savings.

The official added that some banks have been caught off guard by the scale of the withdrawals because much of their available money had already been invested elsewhere.

“People are coming and taking out half a trillion rubles [$5.9 billion] a month,” the former official said.

And it is not only ordinary Russians who appear nervous.

New figures from Russia’s Central Bank reportedly show more than $9.4 billion was transferred out of the country during the second quarter of 2026 alone, suggesting major businesses and wealthy Russians are also moving money elsewhere.

That could create an even bigger problem for Putin because the Kremlin needs enormous amounts of cash to continue financing the war.

Russia’s Finance Ministry has increasingly relied on selling government bonds to cover a widening budget deficit fueled by massive military spending and a slowing economy.

But the government was reportedly forced to cancel planned bond sales last month after failing to attract enough available money.

If the war continues as a drawn-out battle of attrition, the strain on Russia’s economy could become increasingly difficult for the Kremlin to contain.

One associate of a Russian billionaire told The Washington Post that wealthy Russians are becoming concerned Putin could eventually resort to seizing private assets if the government becomes desperate for money.

“If the government needs cash, Putin will just do a grab for assets. He doesn’t care,” the person said. “And that’s where I think it’s heading.”

The former finance official similarly claimed there is a growing feeling inside Russia that the country’s political leadership may no longer be as secure as it once appeared.

Adding to Putin’s problems, Ukraine has dramatically escalated its campaign of drone strikes against commercial targets inside Russia.

A huge wave of Ukrainian drones struck the country Sunday, reportedly setting another warehouse belonging to Russian e-commerce giant Wildberries ablaze and killing six people.

Wildberries, often described as Russia’s answer to Amazon, has repeatedly found itself in Ukraine’s crosshairs.

Ukraine has reportedly struck more than 20 Wildberries warehouses since beginning a campaign against the company’s facilities on July 18, potentially destroying merchandise worth billions of dollars.

The attacks come as Ukrainian forces increasingly demonstrate their ability to reach targets far from the traditional front lines, bringing the consequences of Putin’s war closer to Russian businesses and civilians.

For the Kremlin, the combination of drone attacks, cash withdrawals, capital flight, rising government borrowing needs and fears of possible asset seizures threatens to create another front in the war — this one inside Russia’s own economy.