Sberbank CEO Renews Call for Interest Rate Cut

June 30, 2026 Herman Gref. Sergei Kulakov / Roscongress The CEO of Sberbank, Russia’s largest lender, renewed his calls Tuesday for the Central Bank to cut its key interest rate, arguing that policymakers have poured too much cold water on the economy in their fight against inflation driven by military spending. “An economy simply cannot survive for a prolonged period under the weight of the extremely high real interest rates we’re seeing today,” Herman Gref said during Sberbank’s annual shareholders meeting. Russia’s Central Bank hiked its key interest rate to a two-decade high of 21% in late 2024 as inflation surged. While it has since pursued a policy of monetary easing — lowering borrowing costs to 14.25% earlier this month — the regulator warned that a widening budget deficit and growing problems in the domestic fuel market may force it to keep rates elevated for longer. Gref called it “completely irrational” to use monetary policy to combat inflation caused by what he described as “one-off factors,” including the global energy crunch sparked by the U.S.-Israeli war against Iran. “We’ve already overcooled the economy. The rate needs to come down,” Gref said. Gref, who warned last June that high interest rates and an overvalued ruble would stifle investment and GDP growth, said Tuesday that investments have already fallen by over 14% and could drop by another 3% this year. Policymakers expect Russia’s GDP to grow by just 0.4% in 2026, a significant downgrade from their previous estimate of 1.3%. At the St. Petersburg International Economic Forum earlier this month, Gref had called Russia’s continued economic growth despite high borrowing costs a “miracle.” Aside from Gref’s macroeconomic warnings, Sberbank’s annual shareholders meeting on Tuesday brought positive news for investors and the Russian state. The lender announced it will pay out record dividends on its 2025 results for the fourth consecutive year, totaling 850.2 billion rubles ($10.8 billion). The payout marks 37.64 rubles per share, following a record annual profit of 1.69 trillion rubles ($21.58 billion), an 8.4% increase from the previous year. Dividends from major state-owned companies serve as a critical revenue source for Russia’s federal budget, and Sberbank’s share to the state will total 425 billion rubles ($5.4 billion) this year. Read more about: Gref , Economy , Central Bank Sign up for our free weekly newsletter Our weekly newsletter contains a hand-picked selection of news, features, analysis and more from The Moscow Times. You will receive it in your mailbox every Friday. Never miss the latest news from Russia. Preview Subscribers agree to the Privacy Policy We sent a confirmation to your email. Please confirm your subscription. A Message from The Moscow Times: Dear readers, We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent." These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia. We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help. Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact. By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us. Once Monthly Annual Continue Not ready to support today? Remind me later. × Remind me next month Remind me Thank you! Your reminder is set. We will send you one reminder email a month from now. For details on the personal data we collect and how it is used, please see our Privacy Policy. Read more Russia’s Central Bank Governor Says Likely Rate Hike ’Not Predetermined’ The statement comes amid rumors that the bank could raise the key rate to 22-23% at its Dec. 20 meeting. 1 Min read Russia’s Real Estate Market Rocked by the End of Generous Mortgage Subsidies Russia is now facing a housing affordability crisis which will compound the coming economic slowdown in 2025. 6 Min read Russian Officials ‘Resigned’ to Letting Ruble Fall Past 100 vs Dollar – Bloomberg Some officials expect the low exchange rate will benefit Russia’s state budget amid government plans to increase defense spending. 2 Min read Russians Rush to Pay Off Debt Over Economy Fears Higher numbers of Russian borrowers repaying their loans early are causing banks' retail lending portfolios to stagnate. Russia's retail lending has remained...