European intelligence warned about the risk of an "explosive" banking crisis in Russia due to the war
Kyiv • UNN
European intelligence warned about the risk of a banking crisis in Russia due to the war. Banks remain vulnerable to new sanctions due to deteriorating loan quality.
Russia risks facing an "explosive" banking crisis as credit institutions increasingly bear the burden of the war economy. This is stated in a report by European state intelligence, which Reuters has seen, writes UNN.
Details
The two-page document, prepared for European officials, notes that Russian banks remain vulnerable to new Western sanctions. Although the Russian banking sector has generally withstood the restrictions imposed after the start of the full-scale invasion of Ukraine in 2022, the situation is now complicated by deteriorating loan quality and rising household debt.
The report emphasizes that these factors create an "explosive" risk precisely as the European Union prepares its 21st sanctions package, which is expected to include new restrictions against Russian banks and cryptocurrency networks.
Ukrainian attacks have disabled 42.74% of russian oil refining capacity04.07.26, 10:08 • 33425 views
The Central Bank of Russia declined to comment on the European intelligence assessments, although it has previously publicly downplayed the risks of a large-scale banking crisis.
According to the document's authors, due to the protracted war against Ukraine and the growing burden on the state budget, Russian authorities are increasingly relying on banks to finance companies and support borrowers, which heightens risks for the country's financial system.