Billions Of Dollars, Euros Reach Russia Despite Sanctions

Around $2.3 billion in dollar and euro bills have been shipped to Russia since the U.S. and EU banned the export of their banknotes there in March 2022 following the invasion of Ukraine, according to customs data seen by Reuters, Gleb Stolyarov, Filipp Levedev, and Alexander Marrow reported.

The U.S. government in December threatened penalties for financial institutions that help Russia circumvent sanctions and has imposed sanctions on companies from third countries throughout 2023 and 2024. I Photo: Well-liked Wikimedia Commons

The previously unreported figures show Russia has managed to circumvent sanctions blocking cash imports and suggest that dollars and euros remain useful tools for trade and travel, even as Moscow strives to reduce its exposure to hard currencies.

The customs data, obtained from a commercial supplier that records and compiles the information, shows cash was transported to Russia from countries including the UAE and Turkey, which have not imposed restrictions on trade with Russia.

The country of origin for more than half the total was not stated in the records. The documents showed a surge in cash imports just prior to the invasion.

Between November 2021 and February 2022, $18.9 billion in dollar and euro banknotes entered Russia, compared with just $17 million in the previous four months.

The U.S. government in December threatened penalties for financial institutions that help Russia circumvent sanctions and has imposed sanctions on companies from third countries throughout 2023 and 2024.

China's yuan has overtaken the greenback to become the most traded foreign currency in Moscow, although significant payment problems persist.

Dmitry Polevoy, head of investment at Astra Asset Management in Russia, said many Russians still wanted foreign currency in cash for trips abroad, as well as small imports and domestic savings.

"For individuals, the dollar is still a reliable currency," he told Reuters.