Russian Economy Strained as Citizens Seek Cash and Tax Avoidance Increases

The Russian economy is experiencing heightened strain as its citizens increasingly opt for cash over digital payments. This shift is reportedly exacerbated by recurring mobile internet shutdowns, which impede the functionality of digital payment systems and online banking services.

Concurrently, a growing number of Russian businesses are actively seeking methods to circumvent tax obligations. This trend of tax avoidance further diminishes state revenue, directly impacting the government's capacity to fund public services and its ongoing military operations.

These developments unfold as Russia's economy continues to adapt to the protracted conflict in Ukraine. The combined effect of reduced digital payment usage and increased tax evasion contributes significantly to the slowdown observed in key economic sectors.