Imminent Collapse Of Banks In Ukraine Due To Massive Withdrawals

The banking sector in Ukraine has started feeling the heat of the war between the country and Russia just two days into the attacks. Reports indicate that there is an imminent collapse of banks as Ukrainians rush to withdraw their cash to flee the capital Kyiv.

Russia officially started a military operation in Ukraine with attacks on strategic locations and military assets with 57 people confirmed dead, and 169 others wounded during the first hour of the attack.  Millions of Ukrainians are fleeing the capital towards NATO forces.

On Thursday, many ATM machines within the capital ran out of money due to massive withdrawals. Ukrainians also fear that the government might invoke an emergency law that will it divert their cash from the banks into funding the war.

Read More: Russia-Ukraine Crisis Send Oil Prices Soaring $100 Per Barrel

Already the war has started impacting the global economy with the price of crude oil soaring. Oil and gas prices surged by over 5 percent to hit 100 dollars per barrel on the first day that President Putin made the decision to send forces into Ukraine.

The Brent Crude oil index has reached over 100 dollars per barrel. Its futures are up 5.45 percent at 102.32 dollars per barrel. The increase in fuel price, according to analysts, will see prices of common products around the world increase, hence high inflation.

Read More: Eyes On Putin As The Entire Government In Russia Resigns

Countries within the North Atlantic Treaty Organisation (NATO) have said that they are going to issue the strictest of economic sanctions against Russia if to will not pull its forces out of Ukraine with immediate effect.

President Putin, on his part, has said that any country that will try to stop Russia from Ukraine or threaten Russia will witness an attack that they have never experienced in their history. The statement was directed to the United States of America.