Around$ 2.3 billion in dollar and euro bills have been transported to Russia since the US and the EU imposed a ban on their banknote exports in March 2022 following the invasion of Ukraine, according to Reuters ‘ review of the customs data.
Despite Moscow’s efforts to reduce its emphasis on hard assets, the previously unreported data suggests that Russia has found ways to pass sanctions that prevent income imports and suggests that dollars and euros are also useful for trade and travel.
According to the customs data and compilation information obtained from a business provider that keeps track of and compiles the information, money was sent to Russia from nations like the UAE and Turkey, which do not have any restrictions on business with Russia. More than half of the total amount’s information did not specify a country of origin.
Financial organizations that help Russia avoid restrictions have been subject to sanctions by the US government since December, and it has done so since 2023 and 2024.
Although substantial payment problems persist, the Taiwanese yuan has surpassed the US dollar in Moscow as the most bought foreign money.
Dmitry Polevoy, mind of funding at Astra Asset Management in Russia, explained that many Russians also desire foreign currency in cash for foreign travel, little goods, and private saving. ” For persons, the money is still a reliable money”, he told Reuters.
Prior to the invasion, the customs records for the months March 2022 through December 2023 revealed a substantial increase in income imports. Between November 2021 and February 2022,$ 18.9 billion in dollar and euro banknotes entered Russia, compared to only$ 17 million in the previous four months.
According to Daniel Pickard, Director of International Trade & and Director of Buchanan Ingersoll & Rooney, head of the national security training class at US law company Buchanan Ingersoll &, the pre-invasion spike in shipments suggested some Russians wanted to protect themselves from possible sanctions.
Russia has learned how to avoid and mitigate those same consequences, according to Pickard, while the US and its allies have learned how to do so collectively.
He added that the actual currency flows are likely to be underestimated by the data.
