RUSSIA STRUGGLES TO PAY PENSIONERS ABROAD AS GAZPROMBANK BITES

Moscow is facing mounting difficulties in paying pensions to its citizens living abroad after Western sanctions crippled Gazprombank, the key channel for international transfers.
Thousands of Russian pensioners in Estonia, Latvia, and Serbia have gone months without receiving their payments. In Estonia alone, nearly 4,000 pensioners were left unpaid for the first quarter of 2025, forcing some to apply for local welfare support.
The Russian Foreign Ministry has blamed what it calls an “artificially created crisis,” accusing Western governments and financial institutions of deliberately blocking transfers.
On August 27, Russia’s Pension and Social Insurance Fund announced it had transferred €15.4 million ($17.8 million) to cover delayed pensions for about 13,300 recipients in Estonia and Latvia. Authorities in both countries confirmed they expect the funds to be distributed by mid-September.
Despite this stopgap measure, uncertainty remains over future payments, with sanctions likely to complicate transfers for months to come.