Despite the sanctions, russia continues to receive billions of dollars and euros in cash

About 2.3 billion dollars and euros in banknotes have been sent to russia since the US and EU imposed a ban on exporting their banknotes there in March 2022 after russia's invasion of Ukraine.

This data, which has not been reported before, indicates that russia has managed to evade sanctions that block cash imports. This, according to Reuters, suggests that dollars and euros remain useful tools for trade and travel, even as Moscow seeks to reduce its dependence on them.

Customs data obtained from a commercial vendor that records and aggregates information indicate that cash was transported to russia from the UAE and Turkey, which have not imposed restrictions on trade with russia. The country of origin of more than half of the total amount was not specified in the documents.

In December, the U.S. government threatened penalties against financial institutions that help russia circumvent sanctions and imposed restrictions on companies from third countries in 2023 and 2024.

The Chinese yuan has overtaken the dollar to become the best-selling foreign currency in Moscow, although significant payment problems persist.

russia began calling the dollar and euro “toxic” in 2022, as sweeping sanctions cut off its access to the global financial system, making payments and trade more difficult. About $300 billion of the Bank of russia's foreign exchange reserves in Europe were frozen.

Documents show a surge in cash imports just before russia's full-scale invasion. Between November 2021 and February 2022, $18.9 billion worth of dollar and euro banknotes were imported into russia, while in the previous four months, only $17 million was imported.

According to Daniel Pickard, head of international trade and national security at the US law firm Buchanan Ingersoll & Rooney, the surge in supplies before the invasion suggests that some russians wanted to protect themselves from possible sanctions.

Source: Reuters