About $2.3 billion in dollar and euro banknotes have been sent to Russia since the United States and the European Union banned exports of their banknotes in March 2022 following the invasion of Ukraine, Reuters data showed on Friday.
The figures show that Moscow has overcome sanctions that prevent currency imports, and indicate that dollars and euros continue to be useful tools for trade and travel, even as the Kremlin tries to reduce exposure to hard currencies.
Customs data obtained from a business supplier that records and compiles the information shows that the money was transported to Russia from countries such as the United Arab Emirates and Turkey, which do not impose restrictions on trade with Russia. Of the total, more than half had no country of origin specified in the records.
Recall that the US threatened in December to impose sanctions on financial institutions that help Russia evade sanctions throughout 2023 and 2024, and imposed sanctions on companies from third countries.
Dmitry Polavoi, head of investments at Astra Asset Management in Russia, said many Russians still prefer foreign currency as cash for trips abroad, small imports and domestic savings. “For individuals, the dollar is still a reliable currency,” he told Reuters.
Customs records cover the period from March 2022 to December 2023, and the latest data is not accessible: the documents showed an increase in cash imports just before the invasion – between November 2021 and February 2022, they entered Russia by 18.9 billion dollars. in dollar and euro notes, compared to just $17 million in the previous four months.
According to Daniel Pickard, head of the international trade and national security practice group at US law firm Buchanan Ingersoll & Rooney, the pre-invasion increase in exports suggests some Russians want to protect themselves against potential sanctions. “While the United States and its allies have learned the importance of collective action to maximize economic outcomes, Russia has learned how to avoid and mitigate those same outcomes,” Pickard said.
Russia’s central bank banned foreign currency withdrawals from individuals following the Ukraine invasion, in an effort to support the weak ruble – just $98 million in dollar and euro bills left Russia by the end of February 2022 and 2023.
Conversely, foreign exchange inflows were huge: the largest single declarant of foreign exchange was the little-known company ‘Aero-Trade’, which offers duty-free shopping services at airports and on flights, which declared approximately $1.5. billions during that period.
More than a quarter of the $2.27 billion in banknotes was imported by banks, much of it to pay for precious metals, according to customs records — while several Russian banks received $580 million worth of cash from abroad between March 2022 and December 2023 and exported roughly the same amount. Precious metals. In many cases, records show that gold or silver shipments went to companies that supplied the notes.
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