In July 2026, small private Russian investors, who account for nearly 90% of the market, withdrew about 90 billion rubles (approximately 965 million euros) from bond funds. This marks the largest monthly outflow in nominal terms since 1998, according to an analysis by RBC agency based on statistics from the InvestFunds portal.
As funds were withdrawn from bond funds, interest in the stock market grew. Experts suggest this reflects investors’ dissatisfaction with the high cost of bonds amid elevated interest rates. At the beginning of July, the index of government bonds on the Moscow Exchange (RGBI) hit annual lows. In mid-July, the Russian Ministry of Finance suspended auctions for federal loan bonds (OFZ).
Changes in the Bond and Stock Markets
In the corporate bond market, rising default rates prompted operators to delay their issuances. RBC experts indicate that the outflow from bond funds was likely driven by investor disappointment over the Central Bank’s slower-than-expected rate reductions.
Conversely, investments in equity funds increased, with a net capital inflow of 700 million rubles recorded for the first time since January 2026, despite the Moscow Exchange index declining for the fifth consecutive month.
Increase in Demand for Cash
During the same period, Russian citizens increased cash withdrawals, surpassing the typical seasonal rise in demand for liquidity. According to data from the Central Bank of Russia processed by Interfax agency, the volume of cash in circulation from July 1 to July 16, 2026, grew by 513 billion rubles.
This figure is 7% higher than the average monthly amount for the second quarter, which stood at 479.4 billion rubles. As a result, demand for cash at the beginning of July was nearly double that of the previous period.
The Central Bank attributed the significant increase in cash demand recorded since early 2026 to disruptions in mobile internet, which complicate online payments, as well as adjustments to new tax rules and the usual seasonal rise in demand during the summer vacation period. Meanwhile, Sberindex data indicates that consumption remained relatively unchanged, suggesting that some of these funds may have been used for purchasing foreign currency for capital export.
Source: ANSA
