Russia continues to receive billions of dollars and euros despite tough U.S. and EU sanctions imposed after its invasion of Ukraine. According to customs statistics, since March 2022, about 2.3 billion dollars and euros in cash have been imported into the country, reported Reuters
The previously unknown data indicates that Russia has been able to circumvent sanctions that prohibit cash imports, suggesting that dollars and euros remain important tools for trade and travel, even as Moscow tries to reduce reliance on hard currencies.
According to customs data obtained from a commercial information provider, the cash flowed to Russia from countries that did not impose trade restrictions, such as the UAE and Turkey. In more than half of the cases, the origin of the currency was not specified.
In December, the US government threatened to sanction financial institutions that help Russia circumvent the restrictions, and has already imposed sanctions on companies from third countries during 2023 and 2024. Although the yuan has already become the most popular foreign currency in Moscow, significant payment problems remain.
According to Dmytro Polevo, Head of Investments at Astra Asset Management, many Russians still prefer cash in dollars for travel, small imports and saving savings. “For individual users, the dollar remains a reliable currency,” he told Reuters.
The Central Bank of Russia and the US Office of Foreign Assets Control (OFAC) did not comment on the matter.
Russia began calling the dollar and euro “toxic” in 2022 after wide-ranging sanctions restricted its access to the global financial system, making payments and trade more difficult. Approximately 300 billion dollars of reserves of the Central Bank of the Russian Federation in Europe remain frozen.
