Russian Banker Urges End to Ukraine Conflict Over Economic Strain

The head of Russia's largest state-controlled bank said the ongoing conflict in Ukraine is placing unsustainable pressure on the economy. German Gref, who leads Sberbank, told state television that ordinary citizens are experiencing the effects of high borrowing costs and fuel shortages linked to strikes on energy facilities.

Gref stated that the central bank raised its key rate to 21 percent in late 2024 before lowering it to 14.25 percent in June. He described the current level of real interest rates as unsustainable for long-term economic activity. Investment in Russia has already declined more than 14 percent, with a further 3 percent drop projected for the current year, according to Gref.

Gref previously warned in June 2025 that elevated rates and currency valuation issues would limit investment and growth. Last September, state media reported that the government disputed his assessment of economic stagnation. Russian authorities declared a state of emergency in Crimea last Friday, suspending civilian fuel sales after reported strikes on energy infrastructure.