Economist Refutes Claims Of Russian Cash Hoarding

A shift in public sentiment is emerging in Russia as citizens begin to express direct criticism of the government. Business owners currently hold more control than top executives, according to the report. The Russian Prosecutor General's Office identified Joseph Sandler and Sergey Pugachev as the ultimate owners of a company using shell firms in the British Virgin Islands and Cyprus. The agency stated these individuals used these entities to hold Russian assets and transferred control of tanker fleets and equipment to third parties abroad following sanctions. Prosecutors described a 2024 re-domiciliation process as fictitious, claiming real control remained with the Cypriot owners. The agency reported that over 10.5 billion rubles were withdrawn under the guise of dividends during 2020 and 2021. This trend is driven by attempts to survive economic pressures and avoid financial ruin. Some businesses are reportedly offering discounts of up to 20 percent for cash payments to encourage this behavior. The source noted that this represents a reverse process of money moving out of the banking system. Economist Igor Lipsis stated that 67 trillion rubles are held in bank deposits rather than being kept as cash at home. He noted that this amount represents approximately one-third of Russia's GDP. Lipsis dismissed claims that people are hiding money under pillows, asserting that most wealth is held in banks.