Add to favorite
Subscribe to our Newsletters Subscribe to our Newsletters Get Daily Updates RSS

Russian Banks Lost $1 BN from Deposits in March
12.04.2014 20:27
Russian Banks Lost $1 BN from Deposits in March
Photo Credit:

In the wake of a sharp devaluation in early 2014, Russians withdrew some 338 billion roubles, or almost $1 billion, from banks in March.

      The total accounts for two percent of deposits in domestic banks, with some of the cash converted into dollars and some invested in real estate.

      The panic had a negative impact on revenue as national lenders earned only 233 billion roubles in 1Q 2014, down 2.5 percent from the same period of 2013.

      Even the biggest banks were hit, including Sberbank, which lost 67.8 billion roubles in deposits in March (-0.86 percent). VTB24 was 13 billion roubles short (-1 percent) while Uralsib’s deposits shrank by 2.7 billion roubles (-2.3 percent).

      There’ve been many concerns about the economic impact of Russia’s move to incorporate Crimea.

      The Russian economy is unlikely to rise above 2 percent in 2014 amid investor uncertainty over the possible impact of sanctions, said the Economic Development Minister.

      According to Alexey Ulyukayev, GDP is expected to grow 1.8-1.9 percent undermined by capital flight worth $100 billion.

      A military invasion of Crimea would cost the Russian economy some three percent of GDP, says Vedomosti.

      Earlier, Russia-IC reported on the possible repercussions of sanctions and investors’ fears on the pace of economic development.

      For example, Bank of America Merrill Lynch forecast that Russia’s GDP would shrink some three percent. The transit of natural gas to European consumers worth $30 billion may be disrupted, too.

      The EU may eventually block the construction of the South Stream pipeline and switch to other energy sources in a move towards an economic boycott.

      Public spending is bound to go up to pay for Crimea’s absorption. The Russian authorities have pledged financial aid to the residents of the autonomy whose budget is facing a $1 billion deficit.


Author: Mikhail Vesely

Tags: Russian banks Ukraine crisis Crimea Sberbank  

Next Previous

You might also find interesting:

Comment on our site

RSS   twitter      submit

Russian tourism  Spartak Moscow  Russian Film Distribution  Golden Ring Cities  Russian scientists  Russian Cinema  Pechory  Ryazan Region  Fashion and Style in Photography  Dagestan  Exhibitions in Moscow  Park of National Unity and Reconciliation  Russian oil and gas industry   Nikolay Feofilaktov  Pustozyorsk  Bulgakov House Museum  Moscow  American Indians  St. Petersburg  Lena Karnauhova  Sergey Mikhalkov  Palaces of Russia  Russian State Corporation  Alisher Usmanov  anniversary  ENEA  Russian Photographers  Stanislavsky Award  VDNKh  Russian sportswomen  Russian business  Mikhail Tarkovsky  Travel to Finland  Cars  Astrakhan Region  Russian investments  Russian science  Republic of Bashkortostan  Krasnodar  Russian economy  Telescopes  Elena Aroseva  Russian sportsmen  Mercedes-Benz Fashion Week Russia  Yuri Lyubimov  Fashion  Mikhail Prokhorov  Rostov  Primorsky Territory  Elvis Presley 

Travel Blogs
Top Traveling Sites