Russia’s central bank will inject 165 billion rubles, or $1.96 billion, into the Russian National Reinsurance Company (RNRC) in September as Ukrainian drone and sabotage attacks increase insurance risks. Governor Elvira Nabiullina said the funding will enable RNRC to meet its obligations while it reinsures terrorism- and sabotage-related risks and provides services to key sectors on preferential terms. Hundreds of Ukrainian drones have struck targets deep inside Russia in recent months, including oil refineries and e-commerce warehouses, increasing demand for coverage and pushing premiums higher. RNRC became the key player in Russia’s reinsurance market after international reinsurers withdrew following Russia’s invasion of Ukraine in February 2022. The company, owned by the Bank of Russia, is under U.S. and EU sanctions. RNRC paid approximately 71 billion rubles in reinsurance compensation in 2025, a record largely driven by war-related claims, and handles around 71% of property insurance for legal entities in Russia. Market pricing cited in the update suggests a lower likelihood of Ukraine recapturing Crimea by the end of 2026, while observers will monitor military momentum and diplomatic engagement.