Russians’ deposits with foreign banks jumped to almost $82 billion in Jan-Nov

MOSCOW (Reuters) – Russians’ deposits with non-resident banks increased by around 2.5 times between January and November last year to almost 5 trillion roubles, around $82 billion according to the exchange rate at the time, the central bank said on Wednesday.

The bank said this did not mean that foreign currency deposits were necessarily flowing from Russian banks to foreign ones, however, as some deposits were converted into roubles or used to buy real estate.

Deposits held abroad by Russians have been on the rise since Moscow launched what it calls a “special military operation” in Ukraine on Feb. 24 last year, with hundreds of thousands choosing to emigrate.

According to the central bank’s monthly statistics, the biggest inflow of deposits to foreign banks was recorded in September last year at more than $9 billion, the month when Moscow launch a partial mobilisation of troops.

Banks’ foreign currency loan portfolios shrank by 18.2% in 2022, the central bank said this week, or by $30.2 billion, as Moscow’s ‘dedollarisation’ push accelerated. The banking sector, blighted by sanctions, saw profits slump.

($1 = 70.1455 roubles)

(Reporting by Elena Fabrichnaya; Writing by Alexander Marrow)