Wagner insurrection caused spike in cash demand across Russia

Fifteen regions saw a dramatic surge in deposit withdrawals, the deputy prime minister has said

Demand for hard currency surged on Saturday in 15 Russian regions during the short-lived rebellion by the Wagner private military company.   

Cash demand jumped by 30% across Russia and by up to 80% in the southern regions of Voronezh, Lipetsk and Rostov-on-Don, First Deputy Prime Minister Andrey Belousov revealed on Monday.   

Belousov said the central bank had averted any significant problems by “infusing” regional banks with a threefold cash injection, and offered reassurances that the situation had returned to normal.  

“Already on Sunday, demand began to decline, now the situation has completely stabilized,” the minister concluded.  

Led by Evgeny Prigozhin, the Wagner PMC launched a rebellion on Friday against Russia’s military leadership. Armed units seized a military headquarters in Rostov-on-Don, with some forces marching on Moscow.  

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However, on Saturday night Prigozhin agreed to stop the advance towards the Russian capital and return his troops to their bases, in exchange for “security guarantees” as part of a deal with the Kremlin, brokered by Belarusian President Alexander Lukashenko.

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