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Russians are pulling billions from banks in the country over growing fears that Vladimir Putin could raid deposits to pay for his war against Ukraine.

The first two weeks of August saw the volume of cash in circulation rise by 286.4billion roubles, or £ 2.5billion, according to The Telegraph.

Every working day of August has seen Russian banks bleed cash, with the highest outflow of 56.8billion roubles, or £491.9million, recorded on August 12, according to central bank data.

It came after a record financial outflow of money in July, when more than 620billion roubles, the equivalent of around £5.4billion, were withdrawn.

This marks an outflow from the Russian banking system for a seventh consecutive month, according to central bank data.

Analysts cite escalating instability caused by Ukrainian drone attacks, economic pessimism and fears that the Kremlin could freeze deposits or impose a sudden cap on withdrawals.

Russians are also increasingly feeling the effects of Putin's invasion of Ukraine as Kyiv continues to launch drone attacks against Moscow's oil refineries and other economic targets.

The surge in cash demand has drained banks' rouble liquidity, prompting the Central Bank of Russia to expand lending to the banking sector.

Russians are pulling billions from banks over growing fears that Vladimir Putin could raid deposits to pay for his war against Ukraine. File image: People stand in line to withdraw money from an ATM of Alfa Bank in Moscow, Russia, Sunday, Feb. 27, 2022

Russians are growing increasingly concerned over the frequency of Ukraine's strikes over Moscow's economic targets. File image: Thick plumes of smoke with flames rise from an oil refinery following a Ukrainian drone attack, in the course of Russia-Ukraine conflict, in Moscow, Russia, June 18, 2026

These setbacks have left many banks without enough cash to purchase government bonds.

This comes after rumours spread across Russian Telegram channels about a potential freeze on Russians' bank deposits.

Anton Siluanov, the Russian minister of finance, issued a statement calling the posts 'fake news', while economic analysts said such a move would be highly unlikely.

Large companies are also moving funds abroad to protect their assets from potential seizure by Russian regulators.

Meanwhile, Russia's billionaire elites are said to be growing unnerved by the Kremlin's nationalisation campaign, which has brought trillions of roubles under state control, and by Ukraine's strikes.

It comes after Ukraine unleashed a massive overnight drone assault on Moscow on Tuesday, sending 620 drones towards the Russian capital as explosions rocked the area.

Russian officials said several people were wounded and buildings were struck, as air defences scrambled to tackle the huge wave of drones.

It came just a day after Russia threatened that Britain would 'pay' for arming Kyiv after Ukraine used UK-made drones to strike targets on Russian soil for the first time.

Flames and smoke rise from a construction site after a Ukrainian drone attack in an undisclosed area in the Moscow region, Russia

A total of 620 drones flew towards the Moscow region overnight, Russian officials said on Tuesday. Pictured: Smoke billowing from a building following a drone strike

It comes just a day after Russia threatened that Britain would 'pay' after Ukraine used UK-made drones to strike targets on Russian soil for the first time

A firefighting helicopter flies above a burning Wildberries facility following a reported Ukrainian drone strike at the Koledino Industrial Park near Podolsk, Moscow

Putin faced further humiliation as the annual Spasskaya Tower International Military Music Festival on Red Square, scheduled for August 21 to 24, was cancelled for the first time during the four years of war.

The event, which was Putin's brainchild, was called off 'for reasons beyond the organisers' control', amid fears over the safety of central Moscow from Ukrainian drone and missile strikes.

With frontline fighting at a near standstill and talks frozen, Ukraine and Russia have significantly stepped up long-distance attacks, pushing the civilian death toll to its highest levels since the war's first months in 2022.

Russian air defences destroyed more than 180 of the drones over the capital region, Moscow Mayor Sergei Sobyanin said on the state-backed MAX platform.

The drone swarm wounded three people, including a 10-year-old girl, Moscow region Governor Andrey Vorobyov said on Telegram.

'Tonight and in the morning, air defence and electronic warfare forces were repelling a large-scale drone attack on Moscow region,' he said.

The 'most serious consequences' were reported in the Pavlovsky Posad district, where a house burned down, Vorobyov said.

Energy facilities were also reportedly targeted, while the Moscow Oil Refinery was among the sites said to have come under attack.

A drone also struck a warehouse east of Moscow belonging to e-commerce giant Wildberries.

'The company's logistics complex in Moscow region sustained minor damage as a result of the attack. Debris hit the wall of the building,' the company said in a statement.

Ukraine has struck multiple Wildberries warehouses in recent weeks, saying the company supplies components for Russian drones.

Drones were also reportedly shot down near an Ozon online retail warehouse in Kupavna, while a commercial pavilion near the Globus shopping centre in Kolomna was struck.

Meanwhile, a Russian missile attack killed 10 people and injured a further eight in a village in Ukraine's northeastern Kharkiv region, the regional governor said on Tuesday.

The violence also spilled beyond Ukraine's borders after a Russian Banderol hybrid drone-missile exploded in a cornfield in neighbouring Moldova.

The unmanned aircraft came down near the village of Talmaza, with President Maia Sandu saying some Russian drones may enter neighbouring countries by accident while others are deliberately sent there.

Ukrainian president Volodymyr Zelensky revealed an intersection in Pechenihy, in the Kharkiv region, had been struck by Russian drones

He said the area was where the post office and shops are located, with only residential buildings around

In a social media post he wrote: 'As of now, ten deaths are known. My condolences to the families and loved ones. Many people are injured and are receiving all necessary medical assistance'

'I believe some arrive by accident and others arrive because they are sent - not only into our airspace, but also into the airspace of other countries in the region. We have seen this in Romania and Poland,' she said.

'In either case, these drones violate our country's airspace and pose a danger to people. The only party responsible for these things is the Russian Federation, which started this war.'

Ukrainian president Volodymyr Zelensky revealed an intersection in Pechenihy, in the Kharkiv region, had been struck by Russian drones.

He said the area was where the post office and shops are located, with only residential buildings around.

In a social media post, he wrote: 'As of now, ten deaths are known. My condolences to the families and loved ones. Many people are injured and are receiving all necessary medical assistance.

'Rescuers have already extinguished the fire, and all emergency and operational services continue to work at the scene. All circumstances of this tragedy are being clarified. We will definitely respond to this Russian strike.

'And no less important is for our partners to complement our justified kinetic responses with their own steps in putting pressure on Russia and supporting Ukraine.'