Cash usage spikes in Russia as war strains economy

Russian authorities have intensified restrictions on mobile internet access, imposing periodic shutdowns that affect millions of users across the country. The measures, introduced amid the ongoing conflict that began in February 2022, are aimed at curbing the spread of information deemed “unreliable” or “subversive,” according to statements from the Ministry of Digital Development. Telecommunications providers report that the outages, which can last from several hours to entire days, are being coordinated with regional security agencies and have led to disruptions in everyday communications, online banking, and e‑commerce activities.

At the same time, the prolonged war has prompted a noticeable rise in tax‑avoidance strategies among Russian businesses. Financial analysts note that companies are increasingly exploiting loopholes, shifting profits to offshore entities, and underreporting revenues to mitigate the fiscal pressure caused by heightened war‑time expenditures and inflation. The Federal Tax Service has responded with a series of audits and stricter reporting requirements, yet the scale of non‑compliance appears to be expanding as firms seek to preserve cash flow in an increasingly uncertain economic environment.

These twin developments—mobile internet shutdowns and growing tax evasion—underscore the broader economic and social strain Russia faces after more than four years of conflict. While the government emphasizes security and fiscal stability, the combined impact on connectivity and revenue collection may further challenge the country’s ability to sustain public services and maintain domestic confidence in the long term.