Russia Is Switching to Cash (Though the Central Bank Denies It). Is the Economy Slipping Back Into the Shadows Again?

Russia Is Switching to Cash (Though the Central Bank Denies It). Is the Economy Slipping Back Into the “Shadow”?

Analysts note that the share of cash payments in the Russian economy has been steadily growing in recent months.

The Central Bank disagrees with this, but the regulator’s position may simply be tied to the fact that it does not see the gradually growing share of transactions moving into the “shadow.”

Experts link this trend to several factors:

✹ small and medium-sized businesses are guided above all by a desire to avoid higher taxes;

✹ citizens need banknotes to pay during mobile shutdowns (and these happen regularly across the country);

✹ finally, both of these groups fear tighter control over individuals’ accounts (such a bill has already been submitted to the State Duma).

Why is the growth of cash transactions dangerous? And how far can it go?

That is the subject of Meduza’s explainer.

Open with VPN | without VPN

@meduzalive

Meduza

Russians Are Increasingly Paying in Cash Due to Higher Taxes, Tighter Account Controls, and Internet Shutdowns

In Russia, the share of cash payments is growing, analysts’ data show: