Sanctions from the West and the decline in the price of oil have led to fears for the stability of Russia's financial system, with high-profile business leaders from Russia warning that the country is facing a "dramatic" situation.
Herman Gref, the chief executive of Russian bank Sberbank, told CNBC that Russia's banking system would "certainly see the need for capitalization" if oil prices fell below $45 or $40 a barrel – not far from current prices.
"If you talk about oil being as low as it is, for example below $40, $45 dollars a barrel, then we will certainly see the need for recapitalization of the banking system," Gref, the head of Russia's largest lender, told CNBC Thursday on the sidelines of the World Economic Forum in Davos, Switzerland.
"We will certainly see the need for banks to build reserves, at around 3 trillion roubles, or $50 billion, as we estimate those need for reserves, and there will certainly be some bank failures. I do not exclude the possibility of some banks actually going bust, losing their cherished reliability," he warned.