Russian banks face vulnerability as war economy strains resources

Russia risks an “explosive” banking crisis because lenders are shouldering much of the burden of the country’s war economy, a European state intelligence report seen ​by Reuters has warned, as the European Union readies a raft of new sanctions.

The two-page document, which was prepared in recent weeks to inform European officials about the state ‌of Russia’s banks, outlines their vulnerability to further Western curbs....