Banking Crisis Deepens in Russia as Loan Defaults Surge
Russia’s banking sector is showing mounting signs of financial distress as a growing credit crisis reaches the country’s largest lenders, according to Ukraine’s Foreign Intelligence Service, UATV English reports.
According to the intelligence agency, analysts have recorded a sharp increase in overdue loans at Russia’s largest bank, Sberbank. Non-performing debt in the bank’s loan portfolio has risen by nearly 25%, while overdue mortgage debt has doubled.
Similar trends are emerging at other major financial institutions, including VTB, Russia’s second-largest state-owned bank, which holds approximately 8 trillion rubles in household deposits.
VTB recently announced plans to cut 10% of its headquarters staff after reporting worsening financial results. The bank’s profit declined by 20% in the first half of the year and fell by 34% in the second quarter alone.
The crisis is also spreading to Russia’s private sector. Businesses operating through the Wildberries online marketplace are increasingly seeking debt restructuring as financial pressures mount.
According to the intelligence, payment delays across the Russian economy have intensified significantly during the first five months of the year. Customers and contractors are taking longer to settle invoices, disrupting cash flow throughout supply chains.
As suppliers receive payments later, they in turn postpone payments to their own partners, creating a cascading chain of non-payments that is spreading across multiple sectors of the Russian economy.
The intelligence service says these developments highlight growing structural problems in Russia’s financial system, as prolonged sanctions, high borrowing costs and slowing economic activity continue to strain both banks and businesses.
Earlier, the United Kingdom expanded its sanctions against Russia by adding 12 companies, one individual and six vessels to its sanctions list. The measures also targeted several Russian banks and companies involved in supplying products to Russia’s military-industrial complex.
Read Also: EU Imposes New Sanctions on Russia Following Massive Attacks on Ukraine
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9 of August 2026
