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Secret service report warns of imminent crisis in Russian banking sector amid war and looming EU sanctions

Executive summary: A confidential secret‑service report warns of an imminent crisis in Russia's banking sector due to the ongoing war and impending EU sanctions. The warning signals heightened risk of loan defaults, liquidity shortages and possible capital flight, which could destabilize Russian lenders and affect the effectiveness of sanctions.

Who is involved: Russian banks, Russian intelligence services, the European Union's sanctions committees, and potentially the Russian Central Bank and government.

Likely next: The EU may finalize new sanctions on Russian financial institutions, while Russian authorities could introduce emergency liquidity measures or capital controls to mitigate the fallout.

A classified intelligence report seen by Handelsblatt warns that Russia's banking sector faces a serious crisis as the war in Ukraine continues and the European Union prepares additional sanctions. The report highlights rising non‑performing loans, liquidity strains and potential capital outflows affecting major Russian lenders. It notes that the timing coincides with EU discussions on new restrictive measures targeting Russian financial institutions.

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