2022 heralded a new era for Russia’s banks. Increasingly isolated from the global economy and laden with heavy Western sanctions, the sector saw profits fall by 90 percent compared to 2021.

For Russia’s technocrats, the future seemed dim.

Then came 2023.

Russia’s Central Bank announced last week that the country’s banks had achieved record profits last year, raking in some 3.3 trillion rubles ($36.8 billion).

. . .

Yet there are some reasons to suggest why 2023 may have been a bumper year for Russia’s banks. Faced with the specter of economic ruin, the Kremlin is using all of its strength to keep the country’s economy moving forward.

Its method is simple: more state spending.

Archive