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Since the US and EU banned the export of their banknotes to Russia in March 2022 following the invasion of Ukraine, a total of 2.3 billion dollars and euros have been sent to Russia.
This information comes from customs data reviewed by Reuters.
The previously undisclosed data indicates that Russia has found ways to bypass the sanctions blocking cash imports, suggesting that the dollar and euro remain valuable for trade and travel, despite Moscow’s efforts to reduce its dependency on hard currency.
Customs data, obtained from a commercial provider that collects and summarizes such information, reveals that the cash was brought into Russia from countries like the UAE and Turkey, which have not imposed trade restrictions on Russia. The origin of more than half of the total amount was not specified in the documents.
In December, the US government warned financial institutions aiding Russia in evading sanctions and imposed sanctions on companies from third countries through 2023 and 2024.
Dmitry Polevoy, head of Astra Asset Management’s investment department in Russia, noted that many Russians still prefer holding foreign currency in cash for international travel, small imports, and domestic savings.
“For private individuals, the dollar remains a reliable currency,” he told Reuters.
The customs records cover the period from March 2022 to December 2023, and Reuters could not access more recent data.
The documents also show a significant increase in cash imports just before the invasion. Between November 2021 and February 2022, $18.9 billion worth of dollar and euro banknotes were imported into Russia, compared to only $17 million in the previous four months.
Daniel Pickard, head of the international trade and national security practice at the US law firm Buchanan Ingersoll & Rooney, pointed out that the surge in shipments before the invasion indicated that some Russians were trying to protect themselves from potential sanctions.
In response to the invasion, Russia’s central bank quickly restricted foreign currency withdrawals by individuals to support the ruble.
The data shows that from February 2022 to the end of 2023, only $98 million in dollar and euro banknotes were exported from Russia, while the inflow of foreign currency was significantly higher.
A previous investigative report revealed that drones, computer processors, GPS devices, memory cards, and other dual-use goods continue to be sent to Russia through Georgia, despite claims by Georgian authorities that they have closed loopholes for circumventing Western sanctions.
In recent months, the West has intensified efforts to close these loopholes, allowing Russia to continue evading sanctions.
Read also: Russian economy may not survive transition to peacetime format
