As the global shift away from cash accelerates, cash use has recently begun to rise again in Russia. Digital payment systems have taken a major hit due to the government's internet controls.
According to an analysis by Bloomberg on the 5th local time of data from the Russian Central Bank, the amount of cash in circulation in Russia in April increased by about 600 billion rubles (about $8 billion, about 12 trillion won). Excluding the seasonal increase seen every December, this is the largest monthly rise since Sept. 2022, when President Vladimir Putin released a partial mobilization for the war in Ukraine.
This trend has become more pronounced as the Russian government has tightened internet controls. Since this spring, the government has expanded mobile internet restrictions in major cities including Moscow and St. Petersburg. As internet access has been cut, consumers and corporations have had no choice but to secure cash for everyday payments.
In particular, cash in circulation in Russia increased by more than 1.1 trillion rubles (about 21 trillion won) over the past three months, surpassing the total increase for 2025.
The Russian government claims this is a security measure to counter Ukrainian drone attacks. When a widespread internet outage hit Moscow in March, a Kremlin Spokesperson defended it as "a necessary measure to ensure citizens' safety." President Vladimir Putin also described it as "to prevent acts of terror."
Bloomberg reported that everyday life has also been heavily disrupted by the internet controls. Residents have to print electronic tickets in advance, and they are experiencing situations where they cannot hail taxis via landline phones or pay parking fees. Sales of offline communication devices such as walkie-talkies and pagers, as well as paper maps, have also reportedly surged.
Bloomberg said, "The expansion of cash use is a case that reveals the tradeoff in Russia between security and economic efficiency," adding, "Measures to protect cities from drone attacks are reviving analog lifestyles that were thought to have disappeared in urban areas, where cashless payment culture has been long underway."
The burden on corporations is also growing. According to the procurement platform TenderPro, Russian corporations increased purchases of communications equipment that can bypass internet restrictions by 82% over the past 12 months. In particular, demand for satellite internet equipment has doubled.
Cash use is expected to grow further. Ahead of the Victory Day military parade on the 9th commemorating World War II, the Kremlin has warned that mobile internet and SMS service disruptions could occur across the capital for several days.